An investigation is being launched into claims a campaign group closely aligned with Labour hired lobbyists to investigate journalists.
The prime minister said the Cabinet Office will investigate Labour Together after the Sunday Times reported it paid £36,000 to a US public affairs firm, Apco, to examine the “backgrounds and motivations” of reporters behind a story ahead of the 2024 general election.
The paper had reported that the campaign group, which was essential to getting Sir Keir elected as Labour leader, had failed to declare more than £700,000 in donations.
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The Sunday Times said Apco produced “deeply personal and false claims” about Gabriel Pogrund, its Whitehall editor. Harry Yorke, the deputy political editor, was named alongside him and the pair were deemed “persons of significant interest”.
They suggested the journalists might be part of a Russian conspiracy or had relied on emails hacked by the Kremlin, according to The Sunday Times.
Josh Simons, now a Cabinet Office minister, was head of Labour Together at the time Apco was paid to look into the journalists, The Sunday Times says.
Confirming the investigation into Labour Together on Monday, Sir Keir said: “There will be a Cabinet Office investigation into the allegations.
“And quite right to – so, that is already in place.”
He added that he “didn’t know anything” about the Apco investigation.
“It absolutely needs to be looked into. So, the Cabinet Office will be establishing the facts,” he said.
Number 10 later said Sir Keir has confidence in Mr Simons.
However, the Lib Dems have called for him to step down as a Cabinet Office minister during the investigation “to avoid any conflicts of interest”.
When the story that Apco had made claims against the journalists emerged in early February, Mr Simons posted on X: “This is nonsense.
“APCO were asked to look into a suspected illegal hack, which had nothing to do with UK journalists at Sunday Times, Guardian or any other brilliant UK newspaper.
“APCO’s investigation never fully got to the bottom of this.
“Those who know me know I think the work of journalists is vital to our democracy.”
Sky News has contacted Mr Simons for a comment about the government investigation being launched.
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Editors said the accusations against the journalists were “profoundly concerning” and warned of a potential “chilling effect” across the industry.
“Journalists asking questions about funding, influence or public life are not adversaries to be investigated; they are carrying out a fundamental democratic duty,” Dawn Alford, chief executive of the Society of Editors, said.
“The idea that reporters could themselves become the subject of intelligence-style inquiries simply for doing their jobs is profoundly troubling and sets a dangerous precedent, regardless of which political party or organisation is involved.”
Labour Together was fined £14,250 in September 2021 for late reporting of donations, totally £730,000 between 2017 and 2020, after referring itself to the Electoral Commission.
Sky News has contacted Apco for a comment.