In a move that has sent shockwaves through Westminster and the business world, Lord Peter Mandelson, the architect of New Labour, has been effectively sidelined by the very consultancy he helped establish. Global Counsel, the strategic advisory firm, has taken the drastic step of revoking his voting rights and terminating all dividend payments.
A Corporate Clampdown on a Political Heavyweight
The firm's board has activated a clause in its corporate governance documents designed to protect the company from reputational damage linked to its founders' activities. This decisive action is a direct response to Mandelson's recent and very public political manoeuvres, which are understood to have caused significant friction with the current leadership of Global Counsel.
The Heart of the Conflict
Sources close to the situation indicate the rift stems from Mandelson's unwavering criticism of Sir Keir Starmer's Labour leadership and his attempts to influence party policy from the sidelines. The board reportedly views these actions as incompatible with the firm's need to be seen as impartial, especially with a potential Labour government on the horizon.
The specific measures enacted against Lord Mandelson include:
- Revocation of voting rights: He can no longer vote on company matters.
- Cessation of dividend payments: His financial stake has been effectively frozen.
- Exclusion from 'founder shares': He has been moved to a different class of shares with diminished privileges.
An Ironic Twist for the New Labour Architect
The situation is rich with irony. Mandelson, a key figure in rebranding the Labour party as business-friendly in the 1990s, now finds himself at odds with a major commercial entity. Global Counsel, which he founded with Benjamin Wegg-Prosser in 2010, was built on leveraging political insight for corporate clients. The firm's current leadership, including CEO Simon Fraser, appears to be prioritising commercial stability over loyalty to its founding figure.
This public falling-out underscores the delicate balance political consultancies must strike and serves as a stark warning to other figures who attempt to navigate the turbulent waters where high-level politics and business intersect.
