SCOOP: Rachel Reeves advisor's firm lobbies for Shein

Kamella Hudson is a partner at FGS, whose clients include Chinese fast fashion giant accused of human rights violations and now seeking a stock market listing in the UK.

A lobbyist who has been working closely with Rachel Reeves is employed by a company that represents Shein, the controversial Chinese fast fashion giant that is attempting to secure a UK corporate listing.

Kamella Hudson, a partner at the consultancy FGS, has been working closely with Reeves, prompting concerns about a conflict of interest.

Democracy for Sale can now reveal that FGS lobbies for Shein, the Chinese business estimated to be worth about $66 billion (£49 billion).

Hudson worked unpaid for Rachel Reeves during the election campaign and at the Labour conference.

Shein has been attempting to secure a listing on a US stock exchange but became a casualty of growing geopolitical tension. It is now seeking a listing in the UK.

Ahead of the general election, Labour indicated that it would back Shein listing in London.

The listing decision is controversial because of concerns about whether the Chinese company can meet UK corporate rules. Campaigners have also accused the firm of “questionable” labour and human rights standards, a charge it strongly rejects.

UK companies have also raised concerns about Shein’s use of a tax loophole in which small packages sent from abroad directly to customers are not subject to import duties.

Julian Dunkerton, the boss of the clothing chain Superdry, says that its rival Shein is in effect allowed to “dodge tax” and is urging the government to take action.

Labour signalled before the election that it would not be closing this loophole, in an apparent attempt to get the fashion giant to list here, according to the Financial Times.

The move raises questions about whether Reeves, who is now the chancellor, was fully aware of the clients of FGS from which she accepted a member of her staff.

MPs do not have to declare informal advisers, even if they have extensive access, so long as they do not have a parliamentary pass.

It is understood that Hudson had been on unpaid leave for Reeves, below, during the general election campaign and during Labour conference

Last week The Times revealed that Hudson was said to have been a key member of Reeves’s campaign team as they prepared to enter the Treasury, and during Labour conference.

FGS had donated £17,000 to Reeves by seconding Hudson to her in the lead-up to the election, before she worked unpaid for Reeves during the election and at Labour conference.

One source familiar with the arrangement said: “Rachel loves her. She worked for her extensively during the election campaign and did so again at Labour conference. She was in the room for everything.”

It is also understood that FGS sponsored a reception of 125 business leaders after Reeves’s speech at the conference, including 20 of FGS clients agreed with Reeves’s office. It is understood that the donation will be declared in due course.

A Treasury source denied that Hudson had a No 10 or Treasury security pass, or had worked for Reeves before this year.

The source denied that she had organised any client meetings while working for Reeves, or raised matters related to Shein with Reeves.

They said Hudson volunteered for Reeves at the party conference, focusing on visits, events and logistics.

It is understood that Hudson had been on unpaid leave for Reeves during the general election campaign, and during Labour conference, and has not yet returned to FGS.

FGS’s clients have included Huawei, the Chinese telecoms company sanctioned by the United States, and the water industry lobbying body Water UK. It has also worked for Oracle, EY and BAE Systems. FGS says it ceased working for Huawei in late December 2020.

Susan Hawley, executive director of Spotlight on Corruption, said: “The government needs to work hard to avoid the perception that its policy agenda is being dictated by corporate lobbyists. People need to know that the new government’s policies are being developed in the public interest rather than in the interests of business groups with privileged access to ministers.”

A spokeswoman for FGS said: “I’m afraid unless our clients ask us to do so, we aren’t able to comment either way on existing engagements.”

A spokeswoman for Shein said it had had no meetings with Labour Treasury ministers since the general election, but declined to comment further. Hudson was approached for comment.