4 days ago
Lobbyists from Peter Mandelson's firm attend US embassy reception
Senior executives from a lobbying company co-founded by Lord Mandelson's were invited to Washington to attend an embassy reception with Rachel Reeves.
Two executives from Global Counsel, who are based in Britain, were on the guest list for one of Mandelson's first outings as the British ambassador to US.
The decision has raised eyebrows because Mandelson co-founded the firm and worked for it until May last year. He is understood to own a significant stake in the business, which had a turnover of £16 million in 2023. He has agreed to put his shareholding into a blind trust until it can be sold.
Embassy sources insisted that the decision to invite Benjamin Wegg-Prosser, Global Counsel's chief executive, and Benedict Brogan, a managing director, had not been made by Mandelson.
They added that invitations to such receptions were not uncommon and that representatives from Global Counsel, which has an office in Washington, had been invited to embassy events on previous occasions. Global Counsel declined to comment.
However, rival lobbying firms said it was 'surprising' that Wegg-Prosser and Brogan had been invited to the event — and had taken time to fly out to Washington for it. 'It is the perception that matters,' one said. 'Everyone knows that Mandelson founded Global Counsel and it was a bit odd to see two of his former executives being wined and dined at his new embassy.' Another added: 'I guess my invitation got lost in the post.'
Steve Goodrich, head of research and investigations at Transparency International UK, said: 'When lobbyists secure access to exclusive government events while their firms' co-founder holds one of Britain's most sensitive diplomatic posts, it raises suspicions of preferential treatment that undermines public confidence in the integrity of our institutions.
'We urge the Foreign Office to review how it is managing potential conflicts of interest, including how it ensures the UK's ambassador to the US does not present an inappropriate channel for influence.'
Mandelson took up his role as ambassador in February having spent the previous decade building up Global Counsel into a major international player.
The firm's clients have included companies such as Anglo American, JPMorgan, Shell and OpenAI.
It also represented several companies linked to China, including TikTok, which is facing a ban in the US unless ByteDance divests itself of its ownership of the company in America.
In the first three months of the Labour government, Global Counsel recorded having lobbied ministers or senior officials on behalf of 22 clients.
Mandelson co-founded Global Counsel in 2010 and later served as president of the Great Britain-China Centre, an arm of the foreign office. The firm was valued at £30 million last year when the Messina Group, the political consultancy founded by Jim Messina, a former Obama campaign manager, bought a 20 per cent stake.
This allowed the company to expand its operations in Washington where it now employs eighteen people. It also has offices in Brussels, Doha and Singapore.
A spokesman for the US embassy said: 'Each year, in support of the UK government's growth agenda, the British embassy in Washington hosts a number of engagements in the margins of World Bank and IMF Annuals to bring together the best and brightest of the business and economic community. It is standard practice for international companies to have representatives attend.'
