A Cayman Islands hedge fund recently made the largest-ever donation to the Labour party shortly after the announcement of the general election. The fund, Quadrature Capital Limited, which is based in the Caribbean tax haven, donated a substantial £4 million to Sir Keir Starmer’s campaign. This donation was accepted just before the campaign rules required parties to disclose their donations weekly during the election period.
This news comes at a time when No 10 is facing scrutiny over the gifts given to top officials, including the Prime Minister and Chancellor. There are growing concerns about the reliance on a small number of major donors and the potential influence they may have on political decisions.
Quadrature Capital, registered in central London, made this significant donation to Labour due to the party’s dedication to the transition to a greener economy. The company stated that their support for Labour is based on policies that aim to address climate change, promote social equality, and ensure economic resilience. They emphasized that this donation was driven by values, not political motives, as Quadrature Capital remains non-partisan.
The timing of this donation has raised questions, as it was accepted just before stricter transparency rules came into effect for the election period. Normally, donations are disclosed every three months, but during campaigns, parties must report their donations weekly. The snap election was called on May 22, and the Electoral Commission’s reporting obligations began on May 30. Labour accepted the £4 million donation from Quadrature on May 28, before the new rules were enforced, resulting in the donation being made public after the election.
Quadrature has clarified that although its funds are located in the Cayman Islands, it pays UK corporation tax on all profits generated. The company stated that they do not use the Cayman Islands for tax advantages, as the funds are managed from the UK and subject to UK corporation tax.
In addition to the donation, an investigation by The Guardian revealed that Quadrature Capital owned shares in fossil fuel companies, private healthcare firms, and arms manufacturers. This information adds another layer of complexity to the donation made to Labour.
As the details of this significant donation continue to unfold, it will be crucial to monitor the impact it may have on Labour’s campaign and the broader political landscape. The transparency of political donations and their potential influence on policies will likely remain a topic of discussion in the coming weeks.