Labour Lobbying Firm at Centre of ‘Corporate Capture’ Scandal Sees Booming Business

Anacta Strategies, a lobbying firm with deep ties to the Labour Party, reported a significant increase in business during its first full year of operations, with outstanding invoices rising to £210,123 by June 2025 from £700 the previous year. The firm, which counts Israeli-owned defence contractor Pearson Engineering among its clients, maintains close personal and professional links to senior government figures, including Prime Minister Keir Starmer’s inner circle.

Growth and Firm Connections

Company accounts reveal the rapid expansion of Anacta’s UK operations following the 2024 general election. The firm, which billed the Labour Party £90,000 for campaign and strategy services during the election, has since integrated several former party officials into its leadership. Teddy Ryan, a former director of the Labour Party, joined as managing director shortly after the election. Matt Faulding, the former secretary of the Parliamentary Labour Party and a confidant of Downing Street chief of staff Morgan McSweeney, serves as senior counsel.

Growth and Firm Connections

The firm’s influence relies on both professional networks and personal relationships. Managing director Teddy Ryan is married to Labour general secretary Hollie Ridley, while senior party official Clare Reynolds, who remains active within the government, is married to the party’s chief whip, Jonathan Reynolds. Another staffer, Kate Forrester, is married to a former Downing Street aide. These connections have facilitated access to government, including a private breakfast event where Clare Reynolds provided clients with advice on engaging with No. 10.

Lobbying Oversight and Transparency

Anacta Strategies is not a member of the Public Relations and Communications Association (PRCA) and does not subscribe to the industry’s voluntary code of conduct. This status exempts the firm from publishing a comprehensive list of its clients, as it is only required to register activities that meet the statutory definition of lobbying under the Office of the Registrar of Consultant Lobbyists. That legal definition excludes interactions with special advisers, such as Morgan McSweeney, who often hold significant influence over government policy.

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Government transparency data confirms that Anacta hosted McSweeney for lunch in December 2024. Additionally, the firm participated in a roundtable last May with then-tech secretary Peter Kyle, alongside clients including Pearson Engineering, which secured a £10m Ministry of Defence contract last year. Conservative MPs John Glen and Mike Wood have questioned the government regarding the nature of meetings between Anacta representatives and special advisers, though ministers have not provided detailed responses.

The Debate Over Corporate Capture

Critics, including Labour MP Jon Trickett, have described the firm’s activities as a form of “corporate capture,” where individuals transition from political roles into lobbying to leverage their established contacts. Kamila Kingstone, programme director at Spotlight on Corruption, argued that the current regulatory framework is insufficient to ensure transparency.

“When a firm created by well-connected former party staffers can operate outside any code of conduct and lobby special advisers without triggering transparency requirements, it exposes gaping holes in the system,” Kingstone said. She added that the lack of comprehensive rules undermines public trust in government decision-making. Anacta Strategies did not provide a response to requests for comment regarding its operations or client list.

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Omar El Sayed - World Editor

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