A prominent Labour Party donor and public relations executive, previously condemned by a judge for his firm's "repeated threats of violence" against a client, is now at the centre of a fresh financial dispute involving a collapsed hotel chain, an investigation can reveal.
Court Condemns 'Serious Intimidation' for Financial Gain
Daniel Hughes, 42, a former Labour councillor and spin doctor from Liverpool, was personally implicated in a 2022 court judgment over threats made to recover money. Judge Neil Cadwallader ruled that Hughes had encouraged his brother, Brendan Hughes, "knowing how threatening he could appear", to collect a debt from Gary Fredson, the CEO of a solar firm, after their business relationship soured.
The court heard that Brendan Hughes arrived unannounced at the ESE Group offices with John McCormick, a man with a prior conviction for intimidation. Mr Fredson testified that McCormick threatened him by stating he knew where he lived with his wife and children.
Judge Cadwallader found that Daniel Hughes had "directly or indirectly" asked for the money to be recovered, calling it a "serious case of intimidation, and repeated threats of violence… in the hope of gain." The dispute centred on an invoice from Hughes's firm, This Generation. While initially billing £19,000 plus VAT, Hughes later demanded £34,200, including fees for a period after the contract was terminated.
The judge concluded Mr Fredson only paid the higher sum due to the "intimidating visit" and subsequent threats. Hughes was ordered to repay £4,750 in overcharged fees plus damages.
New Allegations Emerge from Bust Hotel Chain
Three years after that judgment, Hughes faces new allegations of overcharging. Administrators for the failed Signature Living Hotel Limited, which operated venues like Liverpool's Shankly Hotel, have accused him of overbilling by £52,806.
In a letter dated March 2021, the administrator stated the original agreement with company director Lawrence Kenwright capped charges at £6,000 inclusive of VAT. The administrator demanded repayment of the £52,806 difference within 14 days. A source close to the hotel business claims the money was never returned.
When confronted, Hughes claimed neither he nor his accountants had seen the letter, as it was sent to an incorrect address and a defunct email. His lawyers at Mishcon de Reya later stated he "disputes the allegations" and that no concerns were ever raised about invoices from his firm, PRD Associates.
Political Connections and High-Profile Fundraising
Daniel Hughes has cultivated significant ties within the Labour Party. Between March 2022 and October 2023, he personally donated £10,000 to Shadow Health Secretary Wes Streeting, a frontrunner to succeed Keir Starmer. He also gave £3,000 to MP Dawn Butler and £5,000 to MP Kim Leadbeater.
In March 2022, he hosted a fundraising dinner for Streeting at the London home of Labour donor Lord Alli, attended by figures like Sir Ian McKellen. Hughes is also reportedly close to Deputy Leader Angela Rayner, whose office received Football for Change gala tickets from his company in November 2023.
Hughes has been heavily involved with the charitable initiative Football for Change, working with celebrities including Noel Gallagher and Jamie Carragher. A biography on his now-deleted company website once described him as one of the UK's most influential PR men.
When asked previously about political donations, Wes Streeting told Newsnight he was "really proud of people who want to contribute … their money to politics." The Labour Party has not commented on the specific allegations against Hughes.
