Peer pressure

Presented by Electrical Safety First

By JOHN JOHNSTON

SNEAK PEEK

— A major row over peers doing consultancy gigs is erupting in Influence land.

— It’s prompted one agency to part ways with Lords on its books …

— … and promises of a rules shake-up from two industry bodies. We’ve got all the angles covered.

**A message from Electrical Safety First: Deaths and injuries from fires and explosions caused by substandard e-scooter and e-bike batteries are on the rise. Our campaign has four key asks to solve this problem, but we need your support. Learn more.**

LOBBYING WESTMINSTER

OUR KINDA VALENTINE: Romantic dinner? Nah. Roses? Keep ’em. But a row blending lobbying ethics, parliamentary standards, and the revolving door? Well, stick on some Marvin Gaye and let’s get it on.

Deets: Last week’s announcement by public affairs firm Stonehaven that it had hired former transport and treasury minister Baroness Vere as a partner to lead on its transport work prompted an avalanche of concern from a swathe of industry pros concerned about lawmakers doing paid advisory gigs. It culminated in the firm pulling the plug on the appointment days later. And now …

Scoop I: Just before Influence went to pixel, the agency confirmed it had also opted to part ways with all other members of the upper chamber who held roles with it — including former Welsh First Minister Carwyn Jones and Conservative peer Mark McInnes. “We can see that there is a debate growing in the industry about the role of advisors,” a Stonehaven insider said. “We’ll take part in the debate to shape what the future voluntary codes should look like. As we do that, by mutual agreement with our advisors, we believe that it is right at this time that we end their employment and [they] have left their roles with Stonehaven.”

Vere today, gone tomorrow: It follows an almighty row that’s rumbled all week over the (brief) appointment of Vere. In a post on LinkedIn, the Tory peer stated her role was to provide “strategic, regulatory and public policy advice to clients” — but specifically not lobbying. She stated she’d fully followed the clearance process for former ministers doing post-government jobs set out by revolving door watchdog, Acoba.

But … Stonehaven founder Peter Lyburn wrote that “on reflection” they shouldn’t have offered the role, adding the hire may have “conflicted” with its membership of the Public Relations and Communications Association (PRCA) trade body. There is no suggestion here that either Stonehaven, Baroness Vere or any of their now former peer employees have actually broken any parliamentary rules.

But but but: The saga has triggered a much wider debate about the relationship between public affairs firms and parliamentarians — and the reputational risk that taking them on poses to the industry.

Part of the problem … Blakeney founder Gabe Winn says that while the rules make it impossible to hire serving MPs, there remains a “gaping hole” around peers. Having sat alongside Vere on the official Remain campaign board way back when, Winn insists he took “no pleasure” in leading public criticism of the gig. He says he’s chill about peers picking up second jobs — but reckons the world of public affairs should be firmly off limits.

Leading by example: “I’ve been very clear that we’ll never hire a currently policy maker,” Winn says. “I think that should be the same for all other lobbying firms and anybody who does lobbying of any kind.”

Cleaning house: Plenty of firms are quick to respond when a current employee gets an ermine-clad elevation. Just this week, Luciana Berger’s ennoblement prompted her to end her role at iNHouse, while Field Consulting parted ways with Mike Katz before he plopped down on the red benches.

No biggie: Olly Kendal, managing director at Westminster Public Affairs, said it was a “super easy decision” for him to end the firm’s working relationship with former London deputy mayor Roger Evans when faced with the same situation. “It’s just fundamentally wrong that I, as a founder of a lobbying agency representing lots of different clients, should employ a member of the House of Lords who I’m also trying to lobby,” he said. “You can’t be both, you’ve got to pick a side.”

Two way street: While that ethical quagmire is enough to put off vast swathes of the industry, Winn reckons it goes both ways, saying peers need to use their own judgment about accepting gigs. “I would hope that is something they would think about in terms of their duty as a policymaker and whether they should be doing this as well,” he adds.

But but but: The majority of peers may understandably rely on the, erm, actual code of conduct set out by the House of Lords to make that judgment … but it ain’t exactly watertight.

Getting geeky: For example, the Lords’ code is clear on the prohibition of payment in return for providing “parliamentary advice,” giving an example of advising outsiders on the process by which they could lobby or influence parliament.

But but but: The code goes on to state that providing “advice on public policy and current affairs” or advice “in general terms” about how parliament works is fine and dandy … So there’s a whole world of gray there.

Big sigh: Forlorn transparency campaigners are, of course, resigned to such a setup. But Steve Goodrich, head of research and investigations at Transparency International UK, says the recent crackdown on second jobs for MPs should obviously be expanded — and he gives props to the lobbyists who’ve made that point publicly this week. “When you have legislators working for lobbying consultancies, there’s always a risk they’re going to put the interests of those paying them ahead of the public’s,” he says.

Brass tacks: Let’s get real here, because that risk — whether real or perceived — simply can’t be alleviated without a blanket ban on peers doing this kind of work. And nobody believes public affairs firms are hiring sitting peers because they make a cracking cuppa.

Clear cut: “As an agency, there is really no reason to employ a peer other than to get them to help you support your clients. They’re not employing them because they can help you run the business,” says Inflect Partners co-founder Emily Wallace.

Key competencies: Vast networks, access to parliament, and an inside track on Westminster happenings. At the very least that creates a “perceived advantage” when clients come knocking, Wallace adds. “That just feels grubby.”

Industry anguish: “There should be clear blue water between lobbyists and legislators — no financial relationship,” says Wallace. Hiring anyone with a parliamentary pass — let alone a sitting parliamentarian — used to be anathema to the industry. But Wallace reckons there’s been a slow erosion of that foundation, and the rules haven’t kept pace with it.

Action stations: It’s why the consensus among industry pros we chatted to is that both the CIPR and PRCA industry codes need an update. Wallace insists the increasingly blurred lines between comms and public affairs firms means it’s understandable the issue has slipped through the net.

The good news … is that both major trade groups seem well up for that fight. CIPR boss Alastair McCapra tells Influence it’s time for the rules to better reflect their long-held view that it’s “not acceptable” for peers to be working or advising public affairs firms “in any capacity.”

Scoop II: “In light of recent, high-profile examples of Lords being hired by lobbying firms and our Lobbying For Good Lobbying campaign that calls for a wider register of lobbying activity, we will be exploring updating our guidance so our members can be clear about their responsibilities,” McCapra says.

Comrades in arms: And it’s a similar story over at the PRCA, which — very handily — is currently in the process of reviewing and modernizing their public affairs code to better reflect shifts in the industry.

Scoop III: “The message from members on the cross-over between lobbying and policy-making has been heard loud and clear and will be dealt with in the forthcoming revisions,” says PRCA chief exec Sarah Waddington.

Lobbying about lobbying: Both trade groups insist they are going to do their bit, but promise to also hold the government’s feet to the fire on tightening lobbying legislation, which Waddington reckons is vital to fixing the “failed patchwork approach” to regulation.

Bigger picture: This isn’t just some self-righteous defense of fair play, because industry pros fear continuing the practice will not only bring reputational damage to the industry, but further degrade trust in Britain’s wider political institutions.

Their big hope … Is that the industry wakes up to those risks, with compliance stemming from a solid ethical consensus rather than some whack-a-mole approach to each row.

Piety plea: “As with so many things in regulation, there also needs to be an understanding that as a participant in that regulation you’ve got to go with the spirit of it as well as the letter of it,” Winn argues.

Word of warning: With trade bodies blasting and the issue snowballing, firms with peers on their books may as well start getting those press statements pulled together now, because Influence’s inbox is open.

QUICK HITS

CONSISTENTLY CORRUPT: Transparency International published its latest global corruption league table — and it’s grim news for the U.K. which has maintained its record low position on the ladder.

Okay okay … Britain may still be the 20th least corrupt nation, but that’s still a far cry from the consistent top 10 position we used to hold — with the group naming Partygate, PPE scandals, and the prominence of major political donors as potential factors for the lack of progress.

Not holding back: Describing the result as “humiliating,” Labour MP Phil Brickell — a member of the anti-corruption APPG — says it should prompt the new government to “tackle loopholes in our political system, and ensure the U.K. is a fair place to do business.” We live in hope.

PHONE BANKING: Influence’s deep dive last week into Downing Street’s novel strategy of offering briefing calls to public affairs pros doesn’t appear to have put them off, with tech secretary Peter Kyle lined up to host an AI-themed sesh on Thursday Feb. 27.

Unfortunately … The new time slot means the call will be taking place right as Influence goes to pixel — making it tougher for us to bring you a snap debrief. What a coincidence!

WORTH A READ: George Greenwood’s latest substack on how the Foreign Office redacted the valediction from then-Foreign Secretary David Cameron’s message to former PM Boris Johnson about a trip to Venezuela is a must-read for masochists.

Totally normal country: Having battled to get the convo released under FOI rules in the first place, Greenwood was stumped by the Foreign Office’s redaction of Cameron’s sign off to his old chum. Another review was rejected, and they only relented after an order from the Information Commissioner’s Office.

Love language: But what word could have possibly warranted months of delay, squandered Whitehall resources, and the intervention of a watchdog? It was “love.” What a bunch of [redacted].

CHINA WATCH: Peter Mandelson’s new gig as U.K. ambassador in Washington prompted a closer look at the work carried out by the lobbying firm he co-founded, Global Counsel. China hawks told the Guardian there were questions to be answered over Global Counsel’s tie-up with a Chinese organization alleged to be part of a state-backed influence operation. Mandelson went … full Trump in his response to the latest story, saying: “I have more important things to deal with just now than your propaganda and I am making no comment.”

**The Munich Security Conference gathers everyone with a say in global defense and security, but what’s happening behind closed doors? With reporters on the ground, POLITICO Pro Defense finds out for you. Register to join us online and to receive our Pro Morning Defense newsletter.**

ON THE MOVE

Cath Smith joined Green Alliance as head of social impact after a stint as CEO of the Women’s Equality Party.

Harriet Shone started with Cratus Group as a senior director (public sector) after a four year stint at the LCA.

Emily Taylor has been promoted to head of external affairs and digital communications at Policy Exchange.

Oliver Kay has a new role as corporate communications lead, U.K. sustainability, community & strategy at Amazon.

Darren Mason is joining Instinctif Partners after a nine-year stint working for MPs.

Luke Downham is getting going with Bradshaw Advisory as a senior consultant after 2 years working for Treasury minister James Murray.

Jobs jobs jobs: The European Climate Foundation have an opening for a senior associate, UK … There’s a digital and comms officer/manager gig going at The Centre for Policy Studies … Lloyds are looking for a head of campaigns and social… Grayling want to hire a public affairs account manager … there’s an executive assistant role going at the IPPR… PoliMonitor are on the hunt for a business development manager … and Hanbury are looking to hire a financial communications director.

Thanks: To editor Matt Honeycombe-Foster for committing a Valentine’s Day massacre on typos. And to the production team for sprucing up Influence.

**A message from Electrical Safety First: Deaths and injuries from fires and explosions caused by substandard e-scooter and e-bike batteries are on the rise. The UK is now facing a disturbing projection of almost one e-bike or e-scooter fire per day, so we need to see action. Our campaign has four key asks to solve this problem, but we need your support. Learn more.**

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