The Labour government is facing fresh accusations of cronyism after it emerged that a company which seconded a senior staff member to Technology Secretary Peter Kyle's office before the election has seen a surge in government contracts. Public Digital, which donated around £100,000 to Labour, has seen its awarded contracts quadruple from £2.5 million to £10 million since Labour took power.
Among the contracts won by Public Digital are a £5 million deal to reform local services and a £3 million contract to transform the Post Office's IT system. While none of the contracts were awarded by Mr Kyle's department, the relationship has raised concerns about potential conflicts of interest.
The Conservatives are calling for an independent investigation, with shadow Cabinet Office minister branding it “more sleaze and scandal from Starmer’s government”. Transparency campaigner and former MP Duncan Hames said: “This case raises serious questions about how public money is now spent under the new government.”
Last year, Mr Kyle faced questions after failing to disclose that a businesswoman he hired, Emily Middleton, was from Public Digital. She was appointed as director general of DSIT on a six-figure salary. A government spokesman said all contracts are awarded in line with public procurement legislation, while Public Digital said its team's expertise, not political affiliations, earned the contracts.
