In a significant development for the upcoming UK general election, the Labour Party has received substantial financial support from environmentally-focused donors. Two major contributors have provided a combined £6 million to Sir Keir Starmer's party, bolstering its campaign resources.
Quadrature Capital, a hedge fund established in 2010, transferred £4 million to Labour on May 28, 2024. This marks the fund's first foray into political donations, having previously directed its charitable arm towards environmental causes. The company stated that its support was motivated by Labour's "commitment to the green transition of the economy."
"Having analysed commitments set out by each party, we donated £4 million to the Labour Party, in support of policies that will deliver climate action while also promoting social equity and economic resilience."
Ecotricity, owned by green energy entrepreneur Dale Vince, contributed an additional £2 million. Founded in 1995, Ecotricity was the world's first green electricity company. Vince, who also owns Forest Green Rovers - recognized as the world's greenest football club - has previously supported environmental activist groups like Just Stop Oil.
These donations have given Labour a significant financial advantage over the Conservative Party in the lead-up to the general election, which must be held no later than January 2025. Between April and June 2024, Labour received £26.1 million in total donations, compared to the Conservatives' £16.1 million.
The Conservative Party's fundraising efforts included a £5 million contribution from Frank Hester, a businessman who faced controversy earlier this year over alleged racist comments made about Diane Abbott, the first black woman elected to the British Parliament in 1987. Hester reportedly apologized to Abbott in March 2024 for his remarks.
Other political parties also reported their donation figures for the second quarter of 2024. The Liberal Democrats, formed in 1988, raised £5.3 million. Reform UK, previously known as the Brexit Party, received £2.6 million, including £20,000 from Charlie Mullins, founder of Pimlico Plumbers. The Green Party of England and Wales, established in 1990, collected £300,000 in donations.
These financial contributions highlight the growing importance of environmental policies in UK politics and the increasing influence of green-focused donors. As the country approaches its next general election, using the first-past-the-post voting system, the role of campaign financing and policy commitments will likely play a crucial part in shaping the political landscape.