Exposed: Labour lawyer told Starmer aide to claim £740k donations were 'admin error'

A senior Labour legal adviser instructed Keir Starmer's chief of staff to brand £740,000 in concealed donations as nothing more than an "admin error", leaked correspondence has exposed.

Morgan McSweeney's crisis has deepened after the damaging email revealed new information about the notorious affair which resulted in his think-tank receiving fines in 2021 for violating electoral law on 20 occasions regarding unreported donations, reports the Daily Mail.

The legal adviser's email urged Mr McSweeney to withdraw his unproven allegation that officials had informed him donations worth £739,492 to Labour Together were exempt from declaration requirements. The correspondence warned that failing to produce supporting evidence could anger the Electoral Commission during its investigation into the matter. The news emerges as dire polling for Keir Starmer shows the three fiascos which could doom Labour.

Instead, the lawyer suggested portraying the entire affair as nothing more than an "admin error".

Conservatives demand police probe

The Daily Mail obtained the email, which the Conservatives published completely on Tuesday evening, as they ramped up pressure for police involvement in the case.

Conservative Party chairman Kevin Hollinrake stated: "The evidence is clear - Morgan McSweeney has been caught red-handed hiding hundreds of thousands of pounds which helped install Keir Starmer as Labour leader.

"This latest scandal at the very heart of government is incredibly serious - and potentially criminal - yet Keir Starmer has expressed his full confidence in his chief of staff, once again demonstrating his poor judgment and raising serious questions about his integrity and honesty.

"Nothing-to-see-here Keir may think he can ride this one out as he tried to over the Mandelson-Epstein scandal, or perhaps he is too weak to fire a chief of staff who tells him what to think, but the Conservatives will not stop fighting until we get to the truth. That is why we are calling on the Electoral Commission and the police to urgently investigate."

The Express has invited Number Ten to comment on the allegations.

McSweeney faces mounting pressure

Mr McSweeney engineered Labour's election triumph and acts as Sir Keir's most trusted lieutenant, yet he confronts growing rebellion from Labour MPs regarding the party's deteriorating polling performance.

He has also drawn fierce criticism recently for his disastrous counsel to Sir Keir regarding Lord Mandelson's appointment as US ambassador, while being fully aware of his continued association with convicted paedophile Jeffrey Epstein after his sentencing for child sex offences.

These latest revelations could resurrect a scandal Labour has worked to eliminate from public attention.

Electoral Commission findings

The Electoral Commission identified more than 20 breaches of donation regulations by Labour Together in September 2021, resulting in a £14,250 penalty for the organisation, reports the Daily Mail.

The regulatory body had clearly instructed Mr McSweeney in 2017 about the mandatory 30-day reporting period for donations.

Yet multiple donations received by Labour Together from 2018 through July 2020 went unreported until Mr McSweeney's departure from the organisation later that year.

The recently exposed legal counsel contradicts Labour Together's public position that unreported donations stemmed from "human error and administrative oversight" - while also challenging their assertion of maintaining complete "openness and transparency".

Pattern of non-disclosure emerges

When Mr McSweeney became director in 2017, he properly reported donations to the group initially. Yet by early 2018, he had discontinued this practice - with the sole exception of declaring £12,500 from Trevor Chinn, a businessman and Tony Blair associate.

His successor Hannah O'Rourke only uncovered nearly three years of unreported donations valued at £739,000 after Mr McSweeney's departure to join Sir Keir's team as the new Labour leader, subsequently filing multiple "late" reports with the commission.

Lawyer's warning revealed

Gerald Shamash, describing himself as "solicitor to the Labour Party", sent the leaked email to Mr McSweeney during February 2021.

Mr Shamash noted that the scale of unreported donations left "no easy way to explain how Labour Together finds itself in this situation".

He described efforts to "steer" the Electoral Commission toward imposing an administrative sanction that would "minimise publicity".

Mr McSweeney seemingly claimed that commission officials advised him during an early 2018 phone conversation that donation reporting was unnecessary for his think-tank.

However, Mr Shamash cautioned that no documentation of this alleged conversation existed at either the watchdog or Labour Together.

The Express emailed Lord Shamash via the House of Lords for comment.

Legal advice contradicts public claims

He explained that without proof of the telephone discussion - and justification for ignoring earlier commission guidance - Labour Together might need to attribute the regulatory violations to administrative mistakes.

Mr Shamash observed that the commission "have a record of a number of calls with Labour Together but none with you".

His conclusion stated: "It may be better if Labour Together cannot deal substantively with questions I pose, then perhaps best to simply base our case as to the non-reporting down as admin error."

Questions mount over McSweeney's role

These disclosures increase demands for Mr McSweeney to clarify his decision to hide substantial donation amounts during the think-tank's support period for Sir Keir.

A PM biography revealed Mr McSweeney's advisory role with Sir Keir began in summer 2019, including access to polling data worth hundreds of thousands of pounds - preceding Labour's electoral defeat that year.

Downing Street has avoided responding to inquiries about Mr McSweeney's Labour Together tenure.

Nevertheless, the Prime Minister's official spokesman confirmed Sir Keir maintained "full confidence" in his chief of staff amid the developing controversy.

Labour Together has been approached for comment regarding these revelations.

The commission stated it had "thoroughly investigated" the delayed reporting in 2021, noting: "Offences were determined and they were sanctioned accordingly."