Rachel Reeves is facing major questions after a Labour donor was appointed to a top civil service jo (Image: Getty / X)
A cronyism scandal at the heart of Whitehall has exploded just 40 days after Sir Keir Starmer entered Downing Street promising to clean up politics.
In January, Sir Keir delivered a speech pledging to restore standards in public life, with “a total crackdown on cronyism”, in order to revive trust in politics.
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However a bombshell row began rumbling last week when it emerged that Ian Corfield, a former banker who donated more than £20,000 to Labour politicians in the run-up to the election, had been given a plum job at the heart of the Treasury.
Mr Corfield, a former senior business adviser to Labour, has been appointed as a director of investments to the Treasury, a job usually given to lifelong civil servants and could come with a pay packet of over £160,000 a year.
This morning that row hit top gear, as the Politico website revealed that the UK civil service watchdog was not told of Mr Corfield’s previous donations to the Labour Party when he was handed the role.
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The Treasury is now facing allegations of cronyism (Image: Getty)
Mr Corfield’s appointment was waved through by the Civil Service Commission (CSC).
Civil service jobs are usually required to be filled via “fair and open competition”, however departments can apply for exemptions from this on the grounds of recruiting external skills not currently enjoyed among existing staff.
Two individuals familiar with the process have told Politico that the regulator was not informed of the potential cronyism prior to their approval of him for the role.
A spokesman for the CSC has now said that due diligence, such as flagging potential issues, is the job of the department itself, in this case, the Treasury.
Last night, the Conservative Party’s Chief Secretary to the Treasury, Laura Trott, wrote to the permanent secretary of the Treasury demanding answers about the appointment.
However these concerns have now been heightened following Politico’s subsequent revelations this morning around the CSC approval.
The Tories' Laura Trott has written to demand answers (Image: Getty)
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In the letter, seen by the Express, Ms Trott set out nine questions that the Treasury, and Rachel Reeves, must now answer:
On what day was a request made by ministers to appoint Mr Corfield, and on what date did he commence employment in HM Treasury? Was the fact of Mr Corfield’s donation to the Chancellor brought to the specific attention of the Civil Service Commission at the time when an application for an exceptional appointment was initially submitted? Or did the Commission subsequently become aware of the donation? Was the Chancellor herself, as a recipient of the donation, recused from decisions involving the appointment of Mr Corfield? Was Mr Corfield’s donation to the Chancellor recorded in writing with you, as Permanent Secretary, before any suggestion was first made to appoint him to a Civil Service position? When was this interest recorded with you? Was advice sought from the Cabinet Office or the Prime Minister’s Independent Adviser on ministerial interests in relation to the conflict, or perceived conflict, between the donation to the Chancellor and any decision by your department to appoint Mr Corfield to a role? Did your department test the potential conflict relating to Mr Corfield at the point of his recruitment, in line with the Government guidance on managing Conflicts of Interest, and what steps will be taken to uphold the impartiality of the Civil Service? Will Mr Corfield have a role recruiting and managing other civil servants? Have any other Labour donors been appointed to Civil Service positions in your department? Have there been any minuted meetings between Rachel Reeves and Mr Corfield either before or after this appointment
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Having now seen the newly-published allegations surrounding Mr Corfield’s appointment, Ms Trott told the Express: “The Labour Government have serious questions to answer”.
"By seemingly failing to provide the Civil Service Commission with the fact that this individual has been a donor to Rachel Reeves, they have withheld important information that might well have had a significant impact on the Civil Service Commission's decision to allow this exceptional appointment.
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"The Chancellor and the Labour Party must urgently come clean on how this appointment has been conducted.”
A government spokesperson said: “As you would expect, we do not comment on individual staffing appointments.
“Any appointments are made in line with the civil service rules on recruitment.”