Agency leaders and the CIPR have criticised the appointment of Lord Philip Hammond, ex-Foreign Secretary and Chancellor of the Exchequer, as global adviser at the Penta Group, branding the move unacceptable.
News of Conservative peer Lord Philip Hammond’s new global advisory role was announced by Penta yesterday. He will offer “strategic guidance to Penta’s key clients on their commercial and business challenges”, according to the US-based stakeholder management firm.
Responding to the news, John Higginson, chief executive of Higginson Strategy and Eco Age, said: “In the US, where Penta is based, it is rightly illegal to be both a lobbyist and a politician. It shames us as a nation that a foreign lobbying firm can buy our politicians in this way.”
He remarked: “The best public affairs firms in this country have voluntarily agreed not to pay sitting politicians. It is high time working for a lobbying firm while a sitting politician was banned. Fingers-in-pies Phil needs to choose: a lobbyist or a politician? You can’t be both.”
The controversy over Hammond’s new role comes amid mounting concern over peers working for public affairs firms. An investigation by The Times last month revealed that at least 50 peers have worked for lobbying companies since the start of 2024. And earlier this year Stonehaven abandoned plans to appoint Baroness Charlotte Vere as a partner and stopped working with other peers following a backlash against the move.
The PRCA has been reviewing its rules around lobbying in recent months. However, it has abandoned plans to ban PRCA members from employing MPs, peers, members of a devolved legislature or NEDs “in any capacity”.
Its new Code for Professional Lobbying, released yesterday, says PRCA members cannot employ peers and politicians as professional lobbyists. However, they are allowed to pay them to perform non-lobbying roles as long as they confirm they won’t undertake lobbying and that no conflicts of interest or misuse of confidential information will occur.
Responding to the criticisms over Hammond’s new role, a Penta spokesperson said: “Philip Hammond has joined Penta to advise clients on their commercial and business interests, and to support the growth of our firm as well as advising on corporate strategy.”
They added: “For the avoidance of doubt, his role will never involve the making of representations to public officials in the United Kingdom, or any other activity that would be in conflict with the House of Lords’ Code of Conduct for Members. This is stipulated in his contract of employment. We informed the Public Relations and Communications Association (PRCA) in advance of this announcement.”
Read the full article in PR Week here.