UK Prime Minister Hires US Consultancy with Ties to Gaza Aid Controversy
Andy Burnham's government has engaged Boston Consulting Group to draft a ten-year economic plan, a move critics say contradicts his promise to end neoliberalism.
By Amir Navarro ·
British Prime Minister Andy Burnham has commissioned the American consulting firm Boston Consulting Group, or BCG, to assist in drafting a ten-year national plan. This initiative, which the Prime Minister has described as a move to end neoliberalism in the United Kingdom, has drawn sharp criticism from opposition figures and activists who point to the consultancy's recent history in the Middle East.
BCG is one of the three largest management consultancy firms globally. The Boston-based company has faced accusations of aiding Israeli starvation tactics in Gaza and being implicated in the deaths of thousands of Palestinians. The firm helped establish the Gaza Humanitarian Foundation, an aid distribution body backed by the United States and Israel. The organisation operated four sites in Gaza where over 2,600 Palestinians were killed and thousands more were injured while seeking assistance. Many of the victims were shot by Israeli soldiers or US security contractors hired by the foundation.
In July of last year, the Financial Times reported that BCG was paid more than four million dollars for its work with the Gaza Humanitarian Foundation. The project, which was codenamed Aurora, lasted seven months and involved senior members of the consultancy. Following the revelations, BCG fired several employees, stated that the projects were run secretly, and launched an internal investigation. The charity Save the Children International also suspended its partnership with the firm.
The consultancy’s involvement in Gaza extends to financial modelling related to the potential relocation of Palestinians. Shortly after US President Donald Trump proposed a vision for the enclave, BCG modelled the costs of relocating hundreds of thousands of people. One estimate suggested that more than 500,000 Palestinians would leave with relocation packages worth nine thousand dollars per person, amounting to approximately five billion dollars in total.
BCG has longstanding connections to Israel, including a period between 1976 and 1978 when Israeli Prime Minister Benjamin Netanyahu worked as a consultant for the firm. The company has also been described as a consultant to kleptocrats due to its close relationship with Saudi Crown Prince Mohammed bin Salman. Additionally, the firm has over 6,000 artificial intelligence practitioners and maintains partnerships with major tech companies such as OpenAI and Amazon Web Services.
Green Party leader Zack Polanski criticised the hiring of BCG, calling it a contradiction of Burnham's political promises. Polanski noted that the Prime Minister, who took office in July, had pledged to end neoliberalism. He argued that hiring a major consultancy firm while failing to implement policies like rent controls or the nationalisation of water companies suggests the government is privatising the country's future. Polanski also highlighted the connection between BCG and James Purnell, Burnham's chief of staff, who worked as an adviser to the firm after leaving parliament in 2010.
Purnell, a former minister in the Labour governments of Tony Blair and Gordon Brown, served as vice chancellor of University of the Arts London before returning to government as Burnham's chief of staff. His return to a close advisory role has raised questions about the selection process for the consultancy contract, which Polanski described as a wild coincidence.
A UK government spokesperson responded to the criticism by stating that the government is committed to delivering an ambitious and credible ten-year plan. The spokesperson emphasised that external support is limited, short term, and focused on specific specialist advice. The government also reiterated its commitment to reducing overall spending on consultancy across the public sector.
The ten-year plan is expected to be published by Christmas and will address issues including welfare spending, economic growth, energy policy, and public control of utilities. Despite Burnham's populist and left wing tone, he has faced criticism from his own MPs for not nationalising failed public utilities and for maintaining the ban on the group Palestine Action. The Prime Minister's relationship with the Emirati owners of Manchester City Football Club has also come under scrutiny following a recent finding that the club broke Premier League rules on a massive scale.
