The revolving door: ex government ministers and advisers with inside knowledge
and close contacts leave government to join private shareholder profiteer companies...
Alan Milburn was a Labour MP brought in by Tony Blair
to facilitate private profiteer firms to work for the NHS.
Blair wanted to curry favour with private big business, Brown more in favour
of the real NHS.
Milburn writes opinion pieces without mentioning he is with Bridgepoint (investment) and Care UK
He has a business making vastly increased profits…
and is greatly in favour of more private profiteer firms getting NHS contracts,
paid for by UK taxpayers
Company owned by Alan Milburn had £663,000 profit increase
in 2013-14
AM Strategy, owned by former Labour health secretary, generated income primarily
from private healthcare consulting
Alan Milburn's company, AM Strategy Ltd, has amassed net assets of £2m
since the business was formed in 2006.
Harry Davies
@harryfoxdavies
Thu 29 Jan 2015 16.19 GMT
A company owned by former Labour health secretary Alan Milburn recorded
a £663,000 increase in profit last year, with the income generated primarily
from a string of consultancy roles to the private healthcare sector.
Accounts filed with Companies House show that AM Strategy Ltd generated the
income in 2013-14 at a time when Milburn worked as a senior adviser to Bridgepoint
Capital, owners of one of the UK’s largest private companies delivering NHS healthcare,
as well as working with PricewaterhouseCoopers, Lloyds Pharmacy and others.
The same accounts also show that the amount of cash held by the business-which Milburn jointly owns with his wife- increased by £463,000 to £1.76m as of the end of March 2014.
Milburn has previously described the purpose of AM Strategy as to “undertake
media/consultancy work” on behalf of Milburn.
The disclosure of the scale of Milburn’s personal earnings comes after
the former frontbencher sparked a political row on Tuesday after an
interview critical of Ed Milliband's NHS policy.
In an interview for the BBC’s World At One, Milburn warned the current
Labour leadership against making a “fatal mistake” by
rolling back New Labour’s market reforms to the health service.
Milburn’s intervention echoed a 2011 speech in which he attacked members
of the shadow cabinet for opposing competition in the NHS.
As chairman of Bridgepoint’s advisory board, Milburn advises the company
on its investments which include Care UK.
Care UK’s nationwide portfolio includes hospitals, GP surgeries and mental
health centres, as well as £104m in NHS contracts since 2013.
Milburn holds a similar role at PwC where he chairs a board set up
to expand the accountancy firm’s business interests in public and private
health industries.
Announcing the new role in 2013, Milburn said the health industry offered “strong
opportunities” for growth for both PwC and the wider economy.
The former MP for Darlington also serves as a healthcare adviser to Lloyds Pharmacy
and to a startup developing a smartphone app for diabetes patients.
Other positions include a non-executive directorship at a Swedish private healthcare
firm specialising in renal care as well as a senior advisory role at Pepsico,
the soft drinks giant.
Milburn is no longer an MP and so is not obliged
to declare his individual earnings from each of the roles, nor does he remain
subject to requirements on parliamentarians to declare potential conflicts of
interest before making statements on public policy in which he has a private
interest. Only his total earnings through his company can
be discerned.
Requests to Milburn’s office for comment were not returned by the time
of publication. The publicly available accounts also show that the business
has amassed net assets of £2m since it was formed in 2006.
Milburn, however, is not the only New Labour health minister to find work in
private healthcare since leaving office.
Last May it was announced that Lord Hutton of Furness – who served as
a health minister alongside Milburn – joined the board of Circle
Holdings, one of the UK’s most prominent private health providers which
has won £285m in NHS contracts since 2013.
Hutton also intervened in the row on Tuesday following Milburn’s interview
with the BBC, which he gave immediately after Miliband had delivered a speech
on the NHS.
Hutton said Milburn was right to speak out against Miliband’s plans and
that Labour should continue with reforms begun by Tony Blair and continued by
the coalition.
Earlier this month, Circle said it was going to pull out of running Hinchingbrooke
hospital after the Care Quality Commission found serious failings in the
hospital’s management.
Milburn and Hutton also jointly authored a piece in the Financial Times this
week in which they appeared to criticise the party’s leadership, arguing
that on economic policy Labour “under Ed Miliband and Ed Balls”
have “worked harder to distance themselves from New Labour than to defend
its record”.
Milburn’s intervention, which came immediately after Miliband delivered
a speech on the NHS’s future, is not the first time he has criticised
Labour’s plans for the NHS.
In 2011, he warned the shadow cabinet against making a “huge strategic error of judgment” by opposing competition in the NHS.Speaking to pro-market thinktank Reform, Milburn called for “more competition” and said the shadow health team were making a “fundamental political misjudgment” by attempting to roll back policies he had overseen.