London Influence
POLITICO’s weekly newsletter on campaigning, lobbying and political influence in the U.K.
Throwing the book at lobbyists
POLITICO’s weekly newsletter on campaigning, lobbying and political influence in the U.K.
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By JOHN JOHNSTON
Tips, gossip, state secrets and coffee requests@johnjohnstonmi or[email protected] |View in your browser
SNEAK PEEK
— A leading industry group has unveiled a tough new rule book for lobbyists.
— Philip Hammond’s new gig riles up the public affairs industry.
— The Scotch Whisky Association talks Trump, tariffs and tax as it fights for the industry’s future.
INDUSTRY INSIGHT
CODE CLAMPDOWN:U.K. lobbyists have a new rule book to contend with after the Public Relations & Communications Association (PRCA) launched its revampedcode for professional lobbying, which it claims offers an “uncompromising benchmark” for industry ethics.
Lashing lobbyists: It’s the first update to the code in a decade, and comes after PRCA members and other outside stakeholders expressed concern the rules were “unclear, difficult to understand and to apply in practice.”
But but but:Speaking to Influence, the PRCA’s head of public affairs Louise Whatham said the decision was also driven by the trade body’s increasingly vocal stance on the need for wider industry reform.
House in order: “We could have done it the other way around,” she said. “We could have been very strong and campaigned on that, but I feel we had to get our own code strengthened and into a place that we’re really confident with before we moved on.”
Dictionary corner: Drawn up through an independent process, the big shake-up is around the very definition of professional lobbying itself, with the new code expanded to include those “informing, advising or advocating on behalf of interests.” Talk about casting a wide net.
All part of the plan:The PRCA said that broad brush approach was, however, intentional. A guidance document suggests that’s because those applying the rules should do so through the lens of a normal member of the public and their interpretation of whether an activity would be viewed as influencing the government.
They added: “You should therefore err on the side of caution and we suggest, if in doubt, you keep a note of your thinking which may assist if a complaint about your conduct was later made.” Gulp.
Also kept broad…The definition of what counts as a “relevant public body” for the purposes of lobbying targets. While special advisers and regional mayors are now explicitly mentioned, the code also includes the incredibly vague term: “other bodies that exercise public functions.” How that is interpreted by members is again a matter of “professional judgement” but one which the group said should be taken with the “spirit” of the rules in mind.
History lesson:As reported by Influenceback in March the biggest question for the group had been around the blurred lines caused by MPs, peers and their staff being employed in industry roles — sparked by a string of reporting earlier this year about the extent of the practice.
State of play:While the PRCA has always banned members from employing legislators as professional lobbyists, the group was left pondering whether to continue allowing members to employ them in roles which fall outside the definition of lobbying… or ban the practice entirely.
Pick and mix:In an attempt to strike the “right balance,” the new codewill allow those wider hiring practices to continue… but with some strict safeguards.
Those include…A requirement on firms to list such roles on the PRCA’s register, and provide a written declaration of compliance confirming their new hire understands that they are barred from engaging in any lobbying activity, or misusing confidential information.
Progress of a kind: The decision to stop short of an outright ban on legislators — and especially peers — taking up gigs will undoubtedly disappoint transparency groups and the more puritanical industry figures… but it’s an issue the PRCA said would be kept “under review” given its importance.
Welcome to the party: What may cheer them up is the slightly surprising inclusion of departmental non-executive directors (NEDs) on the list of those now banned from engaging in lobbying… which has presumably led to some rather panicked boardroom meetings in agency world this week.
Unsurprisingly… The PRCA’s consultation response stated those proposals had proved “controversial.” While some members argued NEDs didn’t warrant the same treatment as MPs or peers, the group concluded their regular access to ministers and potential oversight of government policy was simply too big a risk to ignore.
They added: “This could lead to conflicts of interests and lead to a perception of poor ethical standards which could damage public confidence in the industry.”
Subtext: Influence’s hot take is that the mixture of intentionally broad definitions, transparency requirements, and warnings to avoid “actual or apparent conflicts of interest” makes it a pretty hostile environment for firms trying to benefit from the revolving door.
Supply and demand: Of course, the PRCA and other industry codes matter most to firms who’ve opted to join… but Whatham said more and more lobbying shops were being probed by prospective clients to prove they are following an ethical framework before agreeing a deal.
Infamy infamy:“I think the general public are much more aware of the scandals, what lobbying is, and how it impacts their business. So, it’s coming the other way now.”
Under the microscope:But the PRCA pro says while the new code will give its members the “confidence” to showcase their commitment to transparency and standards, it had also renewed their concerns over just how much of the wider lobbying landscape still operates in the Wild West.
Surface skimming: “There’s so much of the sector that is unregulated, and the legislation only covers a really tiny corner of the lobbying sector. For most of the lobbying that takes place there is no requirement to register, and there’s no rules.”
Leading by example: And with its own “house in order” the PRCA is now free to ramp up its work on convincing ministers that it is high time they did their bit. “The government now really needs to step up and look at the rest of the lobbying industry that is unregulated and do something about that.”
QUICK HITS
PENTA UP ANGER: Keeping with the theme, Penta’s decision to hire former Chancellor Philip Hammond — and now Tory peer — as a global adviser has drawn the ire of industry figures.
Tough Phil to swallow:Alastair McCapra, chief exec of t’other lobbying industry trade body, the CIPR, said it was “unacceptable” for peers to be hired by lobbying firms, and argued the current rules feel “increasingly at odds with society’s expectations.”
He added:“If we want to restore trust in public life, we must ensure that lobbying and lawmaking are kept separate, you can choose to serve the public or serve paying clients but never both.” PR Week has moreindustry fury here.
WORTH A READ: In a rare public intervention, chair of Transparency International’s international council Robert Barrington has warned Labour that Angela Rayner’s resignation serves as a warning over our “flimsy” ethics regime.
High stakes:Writing forThe House, the professor of anti-corruption practice at Sussex University said flagging public trust and Reform’s rise should prompt ministers to go beyond their “half-hearted proposals,” adding: “Labour’s chances of winning again — and the health of our democracy if it doesn’t — depend on it.”
Good chaps:As Barrington points out, the fact that Rayner resigned after an investigation by the PM’s independent ethics adviser may suggest that on the surface, the process is working…
But but but:He argues it instead shows the system is “built on sand.” Because the independent adviser serves at the “pleasure” of the PM and has no statutory powers or “real sanctions,” the public is left “gambling on the good intentions” of Westminster’s politicians. “A gamble that has failed too many times in the past.”
WELL SPOTTED:While the new Hillsborough Law was understandably focused on the power to force public officials to tell the truth during probes into major disasters, campaign group Spotlight on Corruption noticed it includes a major shake-up on abuse of public office and corruption.
Welcome changes:Thisexplainer from the group points out the new bill will introduce a complete overhaul of the “archaic” misconduct in public office offence.
Instead…There will be a new offence of breach of duty to prevent death or serious injury. The second is around Seriously Improper Acts, which includes the use of public office to obtain a benefit for themselves or someone else.
Watch your backs:Those covered by the law will include ministers, MPs, civil servants, police and local authorities. But while welcome, Spotlight still wants some clarity over whether private contractors working for central government departments will be included, and whether anyone willactually face prosecution under the new laws.
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CAMPAIGN CORNER
LIFTING SPIRITS: From lobbying the Treasury on tax to trekking around the globe to discuss tariffs, the Scotch Whisky Association (SWA) is a trade body with a dauntingly broad brief.
Inside man:After three decades in the Foreign Office, including stints as the U.K.’s ambassador to Argentina, Thailand and Vietnam, Mark Kent has been chief exec of the SWA since 2022. But simply understanding how Whitehall operates doesn’t make his task any easier.
Brew-tal agenda: Kent sat down with Influence just hours after landing back from Washington D.C., where he’d accompanied the U.K. delegation to chat trade. But he was straight back into talks on the “burning issue” of the domestic tax regime following a budget bodyslam last fall.
On the rocks: According to the group, last year’s rise in spirit duty has already led to 1,000 direct industry jobs being lost, and Kent fears further bad news in November could be devastating after an already “very difficult period” for the sector.
Hitting the bottle: “Getting that message across is absolutely crucial for engagement,” he said. “Obviously, when it comes to budgets, a lot of people are making their case, but for us it’s absolutely vital given 75 percent of the average cost of a bottle of whisky goes in tax already.”
That’s the spirit: Part of the difficulty in making that case is the “ingrained erroneous beliefs” held by some in Whitehall who still feel that because scotch is a Scottish product, then it’s only a matter for “Scottish folks” to handle…
Sip down and listen: But while the former Whitehall veteran understands that M25 bubble “mindset,” he’s pushing the message hard that alongside being one of Scotland’s largest industries and ahuge tourism draw, the sector is also the U.K.’s biggest food and drink export, and supports supply chain jobs across the country.
Hop scotch: Toss in everything from energy costs, to water scarcity, labeling regulations, and net zero, and it’s no surprise that Kent reckons the trade group is now grappling with the “widest remit” its ever had.
He added: “We have to join the dots, and part of the challenge because of our unique nature is we have such a wide stakeholder network. If we don’t then sometimes you get divergence… That’s one of the dynamics we have to be constantly working on.”
Wha’s like us? The “iconic” status of scotch means the SWA may find it easier than other trade associations to make those arguments. But the flipside of that profile, Kent insists, is that the industry is a prime target when it comes to trade disputes.
Dram-a: With the group claiming that the sector is already suffering from losses of £4 milliona week as a result of U.S. tariffs, Kent has been increasingly forced to add complex trade negotiations to his to-do list.
Tartan Trump: Fresh back from his trip stateside, the SWA boss reckons President Donald Trump’s pro-Scottish leanings can’t hurt, but insists that alone won’t get a zero-for-zero deal over the line.
Instead…The SWA has been going for broke to make sure leaders in Westminster and Holyrood are prepped with the details about the interlink between the U.K. and U.S. markets so they can present a united front in negotiations. And all eyes will be on Trump’s trip to Blighty for signs of a breakthrough.
The good news…Is that the recent “landmark deal” struck with India could offer the industry access to the biggest whisky market in the world. But Kent fears that some Whitehall wonks are already looking at their domestic asks through the lense of: “Well, what’s the problem, you’ve got India.”
Pour decisions:Those of you partial to a wee dram will immediately understand that the popularity of 10, 12, and 15-year old tipples means a lot of long-term planning is going to be required… but Kent says there’s still a big challenge to build that awareness in Whitehall.
He added:“It could be anything up to 10 years before the full benefits of this are felt, and if our smaller members are not able to make it until then, we’ve got a big problem.”
Bar brawl: It’s why the SWA’s key message is that securing long-term international success for the industry — and the government’s coffers — means shoring up the domestic landscape now.
He added:“There was an economist who said that in the long run it’ll be okay… but in the long run we’ll be dead. That really sums up our challenge.”
ON THE MOVE
Jo-ann Robertson has been appointed as president, Europe and transatlantic growth leader atBully Pulpit International after three years as Ketchum’s CEO of global markets.
Richard Thwaite-Howarthhas started as a senior director atFleetwood Strategy after a stint as a special adviser for culture sec Lisa Nandy.
George Beardhas joinedCollege Green Group as head of public affairs after a six-year stint at Meeting Place.
Beccy Hutchinsonhas a new gig as public affairs manager atAirbus after a spell at Manchester Airport.
Sarah Bosworth is getting going as senior manager, global policy and international affairs, atHaleon after six years at H/Advisors Cicero.
Joseph Finkle has started as head of public affairs at Liverpool City Council after a two-year spell at Lancaster University.
Miruna Leitoiuhas joined The Chartered Insitute of Building as a policy and public affairs officer.
Jobs jobs jobs:Pets at Home is looking for aPR & media relations specialist… TheBVCA is on the hunt for apublic affairs manager… There’s anevents executive gig going atThe Centre for Social Justice…Revolut has an opening for aUK government affairs manager… TheCoalition for Global Prosperity is looking for ahead of public affairs… andCharlesbye want to find anassociate andexecutive assistant.
Thanks:To editorOscar Williams for throwing the book at typos. And to the production team for making Influence look lush.
