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Labour has postponed a London drinks reception sponsored by UK outsourcing group Mitie after a backlash over the company’s employment practices as the government tries to bring crucial services back in-house.
The Financial Times last week revealed the acrimony within the governing party over a planned soirée for north-west MPs at the Shard head offices of Mitie, featuring appearances from senior government figures.
Unison had planned to picket the event — set to take place on Tuesday night — due to concerns over the company’s employment practices, including an ongoing industrial dispute in Lancashire.
MPs and unions were also concerned that an outsourcer was sponsoring a Labour event when the party has promised “the biggest wave of insourcing in a generation”.
Today MPs were informed that the reception at the London Bridge skyscraper had been “postponed” due to “unforeseen circumstances”. The note from the office of the Parliamentary Labour party provided no further information.
Labour did not comment. One Labour figure said commercial partnerships at events were a long-standing practice and had no bearing on party or government policy.
Kim Johnson, the Labour MP for Liverpool Riverside, said the “cancellation . . . was absolutely the right decision and a clear indication that public pressure can and does make a difference”.
Mitie has also been approached for comment.
The postponement marks the latest in a series of uncomfortable stories for Labour about sponsored events and business engagement, including a £5,000-a-ticket event cancelled at the last minute last month amid suggestions of low uptake.
A dinner to be held on Merseyside, at which Chancellor Rachel Reeves had been due to speak, was also cancelled at short notice in March.
Unison has been particularly outspoken about the Mitie reception, however, because of ongoing strike action over pay by Mitie-employed NHS cleaners in Lancashire.
Last week the union contacted backbenchers outlining its concerns and highlighting that it intended to picket the entrance to the Shard on Tuesday night.
It also criticised the company for the ratio between its highest and median earners.
Mitie said last week that it regularly engaged with representatives from all political parties, “including through parliamentary receptions, to share insights and build constructive relationships”.
Unison regional organiser Sam Doherty welcomed Labour’s decision as evidence that his members’ industrial action was “being taken seriously”.
