Former Tory minister investigated over email sent to Treasury on behalf of bank

Philip Hammond probe comes as Labour demands Tory chair removed ‘immediately’ over lobbying claims

Lord Hammond (PA Archive)

Former Conservative chancellor Philip Hammond is under investigation by the UK’s lobbying watchdog over an email written to a senior government official on behalf of a bank.

Labour had accused Mr Hammond of breaking lobbying rules after it emerged the former Tory MP had sent a message to the Treasury about OakNorth bank – the company he now works for as a paid advisor.

The ex-minister reportedly emailed the Treasury’s second most senior civil servant in July 2020 to explain the benefits of a “toolkit” developed by OakNorth to assess borrowers.

The lobbying regulator is investigating whether Mr Hammond – who stepped as an MP down ahead of 2019 general election – should have registered as a lobbyist when he contacted the Treasury official.

The Office of the Registrar of Consultant Lobbyists confirmed the official probe on Wednesday. “A case summary will be published once the investigation is complete,” the body told the Financial Times.

It comes as Labour called on Boris Johnson to remove Tory co-chairman Ben Elliot from his role “immediately” over lobbying practices.

Mr Elliot discussed with foreign ambassadors a plan to give a top Tory donor a role helping the party boost ties with Middle East countries – without disclosing the donor was a client of his concierge company, according to the FT.

Anneliese Dodds MP, Labour chair, said it was “scandalous” for Mr Elliot to “blur the lines” between government and business activities.

“It is simply wrong for Ben Elliot to leverage his role in the governing party of the UK to hold secret discussions with foreign diplomats on behalf of a commercial client and without disclosing that private business relationship to them.”

She added: “We urgently need to know what meetings took place, what was discussed and what impact that may have had on the development of UK government policy.”

The Office of the Registrar of Consultant Lobbyists was set up in 2014 in a bid to bring transparency to the murky world of lobbying. Both individuals and organisations seeking to influence government policy are required to register with it.

Labour’s deputy leader Angela Rayner claimed Mr Hammond – who quit after losing the Tory whip over his protest against Boris Johnson’s Brexit plans – had violated the code of conduct for former ministers.

The ministerial code says that former ministers must “abide” by the Advisory Committee on Business Appointments (Acoba), which advices former MPs who have recently stepped down what sort of lobbying activities they can and cannot carry out.

The committee is said to have told Mr Hammond that he should not use his contacts in government to “influence policy or secure business” on behalf of OakNorth for a period of two years.

“Hammond has entirely disregarded the conditions that were made clear to him when he took the job with OakNorth Bank,” said Mr Rayner. “If the rules are treated with such derision by the former chancellor then the whole system is rotten.”

Lord Hammond’s spokesman has insisted OakNorth were offering their toolkit to the Treasury “free of charge” and no rules had been broken.

Responding the lobbying regulator’s investigation, his spokesman said: “There was clearly no requirement to register this contact under the rules and Lord Hammond looks forward to the registrar’s confirmation of that in due course.”

Last month Labour branded the Westminster committee which oversees lobbying work “toothless” after it gave Mr Hammond the green light take up a role advising the Saudi Arabia finance ministry.

The chairman of the Acoba committee – the former Tory party chairman Eric Pickles – told Mr Hammond there were concerns he risked creating a “perception you may be offered this work as a result of your time in office”.

However, approval was still granted and Mr Pickles said consultation with Mr Hammond’s former departments had helped satisfy concerns.