Labour’s largest financial backer Dale Vince holds a lucrative electricity contract worth more than £3.5 million with Sadiq Khan’s City Hall, sparking fresh questions about the party’s commitment to ending political sleaze. The revelation comes as Sir Keir Starmer’s government faces mounting corruption allegations, with polling showing 54 per cent of voters now describe Labour as “sleazy.”
Mr Vince, 63, whose green energy firm Ecotricity has been supplying electricity to the Greater London Authority (GLA) since 2020, has donated more than £6.3 million to Labour since 2014. The multi-millionaire environmental entrepreneur has also made substantial personal donations to key Labour figures, including £20,000 to Sir Keir Starmer, £10,000 to Deputy Prime Minister Angela Rayner, and £150,000 to the party-affiliated think tank Labour Together.
The contract, which runs until March 2026, covers electricity supply to City Hall and other GLA properties including Trafalgar Square. Despite there being no suggestion of wrongdoing, critics warn the arrangement will anger taxpayers already concerned about Labour’s ethical standards.
Critics Slam “Taxpayer-Funded” Arrangement
Zia Yusuf, head of Reform UK’s department of government efficiency, condemned the arrangement: “The fact one of Labour’s biggest donors, Dale Vince’s Ecotricity, has been handed £3.5 million of taxpayer money from Sadiq Khan’s Greater London Authority in the last five years will enrage taxpayers.
Susan Hall, the Conservative leader at the London Assembly who was defeated by Sir Sadiq in the 2024 mayoral election, said the revelation was “very interesting.” Ms Hall, who was previously unaware that Vince’s firm supplied power to City Hall, vowed to scrutinise the arrangement.
I will certainly be asking questions about this and will be double checking that Londoners are getting value for money,” she stated.
The contract value has increased substantially since it was first publicised in 2020, when it was valued at £470,000 per year. Freedom of Information responses obtained by the Daily Mail show that Ecotricity has been paid £3.55 million by City Hall since 2020-21.
Labour’s Mounting Sleaze Crisis
The revelation adds to Sir Keir Starmer’s growing political headaches after promising to “clean up politics” and end Tory sleaze ahead of his 2024 General Election victory. Recent polling has painted a damning picture of public perception, with 54 per cent of voters describing Starmer’s government as fairly or very sleazy.
Only 28 per cent said Labour was not very sleazy or not sleazy at all, with 19 per cent remaining unsure. Perhaps most concerning for the Prime Minister, 25 per cent of 2024 Labour voters now label his government as either fairly or very sleazy.
Reform UK voters are most critical, with 69 per cent describing Labour as very sleazy and an additional 20 per cent calling it fairly sleazy.
Pattern of Scandals
The Ecotricity contract is the latest in a series of scandals plaguing Labour since taking office. Earlier this month, the Labour Infrastructure Forum was accused of offering businesses £7,850 plus VAT for a “private breakfast/dinner round table with an influential Labour figure.”
Other controversial packages included £11,750 plus VAT for a “parliamentary panel event with key policymakers” and up to £30,000 plus VAT to sponsor a “Westminster drinks reception.” Chief Secretary to the Treasury Darren Jones and Northampton South MP Mike Reader were among parliamentarians with close connections to the group.
Labour donor Lord Alli sparked early controversy after holding a Downing Street pass whilst funding at least seven Cabinet ministers with more than £300,000. Chancellor Rachel Reeves faced criticism over allegations she embellished her CV, whilst Anti-Corruption Minister Tulip Siddiq was forced to resign amid a Bangladesh embezzlement investigation into her family.
Vince’s Political Connections
Following Sir Sadiq’s mayoral victory last May, Mr Vince publicly celebrated on social media: “Congrats to Sadiq Khan and the team — great news for London and the country — the negative campaigning didn’t work for the Tories, won’t work in the GE either. Historic third term, London has the mayor it deserves and wanted. Despite the voter suppression too.”
The Forest Green Rovers owner, who was appointed OBE in 2004, has been a prominent supporter of environmental causes. He founded Ecotricity in 1995 after living as a New Age traveller and launched his first wind turbine in 1996. His company provides what it calls “certified vegan” green energy to customers across the UK.
Official Responses
An Ecotricity spokesman defended the arrangement: “Ecotricity has been supplying green energy to the public sector for three decades — since we first began. It’s entirely normal. Our contract with the GLA has been widely reported on over the years — and was won in a competitive process via the local authority purchasing consortium, Laser. It’s a small contract and has no connection to anything else.”
The Mayor of London’s office insisted Sir Sadiq had no involvement in the contract award: “The Mayor and his team had no involvement in or knowledge of this contract award. GLA officers appointed an independent public sector energy procurement company to find the best provider for the GLA’s requirements. The contract ends in March 2026.”
Labour’s Credibility Crisis
The contract revelation comes as Labour faces its worst approval ratings since taking office. Sir Keir Starmer’s net favourability rating has plummeted to -46, his lowest ever recorded, with even half of Labour voters now holding an unfavourable view of the Prime Minister.
The government’s overall approval rating paints an equally bleak picture, with 62 per cent of Britons disapproving of its record to date whilst only 17 per cent approve. Labour voters are now divided on the government they elected, with 38 per cent holding a negative view compared to 34 per cent positive.
As Labour continues to face allegations of sleaze and cronyism, the Ecotricity contract serves as another reminder of the challenges facing Sir Keir’s promise to restore integrity to British politics. With Reform UK now polling ahead of Labour in some surveys and public trust eroding rapidly, the Prime Minister’s pledge to clean up Westminster appears increasingly hollow.
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