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February 15, 2008

Supermarkets: follow the money

So as the results of the Competition Commission inquiry into supermarkets concludes today, it is worth remembering almost £9 million has been spent by supermarkets on political donations since 2001. The relationship between the political world and supermarket chiefs seems tight. Wonder why.

According to the Electoral Commission register, Tesco gave £20,269 to Labour in 2003, £9,250 in 2004 plus an event worth £1,845, £11,570 in 2005 (as sponsorship) and £12,925 in 2006. It also gave the Liberal Democrats around £22,000 in sponsorship money over the same period. Although the register does not say so, the company has suggested this money is for publicity stands at party conferences (still a political donation) - although confusingly the Conservatives are missing from the list even though took a stand at their conference too.

Sir Terry Leahy, the Tesco boss, was given a knighthood by Tony Blair and was a dinner guest at Chequers after his company bailed out the struggling Millennium Dome with a £12 million donation. Additionally, reports last year suggest three aides to Tony Blair, including a former special adviser and a senior civil servant from the 1997 Cabinet Office, went to work for Tesco.

From Sainsbury's, Sir Tim Sainsbury, the former Tory minister and father in law of Shaun Woodward, gave £25,000 in 2004 to the Conservatives then £5,000 in 2005. Lord Sainsbury of Preston Candover, the former chair who held a stake in the company until 2006, gave the Conservatives £100,000 in 2004 and £150,000 in 2006.

But the biggest donor is Lord David Sainsbury, one time Labour minister. His donations total £8.5 million, the last  being £2 million in September in the run-up to the election that never was.

Marks & Spencer takes a different approach, saying in its annual report: "It is our policy not to make donations for political purposes in the UK, to donate to EU Political parties or incur EU Political Expenditure." Morrisons have a similar policy.

However that does not mean they are without political connections. Stuart Rose, the CEO of Marks and Spencer and Sir Terry are both on Gordon Brown's business council. Asda, meanwhile, seems a particular favourite of David Cameron

Sam Coates on February 15, 2008 at 09:58 | Permalink Bookmark and Share

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