A cross-party parliamentary group set up by a former Conservative adviser to the defence secretary has been dissolved following revelations that it accepted funding from a state-owned Israeli arms company, exposing a significant loophole in lobbying regulations. The Defence Technology All-Party Parliamentary Group (APPG), established in November 2024 by James Clark, a former special adviser to Grant Shapps at the Ministry of Defence (MoD), was under investigation by Parliament’s standards commissioner after it was revealed that it received funding from RUK Advanced Systems Limited, a subsidiary of Israeli arms giant Rafael. This arrangement violated rules that prohibit APPGs from using secretariats funded directly or indirectly by foreign governments.
The APPG, which aimed to promote engagement with the defence technology industry, offered companies opportunities to network with MPs and policymakers at events in Parliament, some of which included Labour ministers. MPs within the group tabled numerous parliamentary questions advocating for the industry. However, the group has since been dissolved, with its former co-chairs, Labour MP Fred Thomas and Conservative MP Neil Shastri-Hurst, declining to comment.
The investigation by Democracy for Sale and the Bureau of Investigative Journalism uncovered a “glaring inconsistency” in the lobbying rules designed to regulate the revolving door between government and industry. Clark, a serial failed Conservative parliamentary candidate, was able to set up the APPG just six months after leaving the MoD, despite rules that normally restrict ex-advisers from lobbying for at least a year. The MoD justified this by stating that Clark’s role was deemed to be “within central government” because it was “directly in support of a parliamentary body” and “industry sponsors had no role in the appointment.” However, APPGs are not official parliamentary bodies and are defined as “informal cross-party groups that have no official status” on Parliament’s own website.
The APPG received over £60,000 to administer the group from a host of arms companies, including Lockheed Martin and Leonardo. The money was paid to a company called ‘APPG Secretariat Services Ltd’, which Clark had set up as the sole shareholder just two weeks earlier. Clark was listed as its co-founder online, and his telephone number was the group’s public contact point.
Steve Goodrich of Transparency International highlighted the inconsistency in the government’s revolving door rules, stating, “This case exposes a glaring inconsistency in the government’s revolving door rules and creates a convenient loophole that undermines cooling-off periods. When an APPG is funded by major defence contractors and explicitly aims to ‘promote engagement’ with the industry, it’s functionally operating as a lobbying vehicle – regardless of its classification. Labour promised to strengthen lobbying oversight, but cases like this show we need immediate action to close regulatory loopholes before they become established practice.”
Clark’s role at the MoD involved providing ministers with expert advice on defence policy and strategy and delivering the Defence Industrial Strategy. He left government in May 2024 and subsequently stood in the general election as the Conservative candidate for Great Yarmouth, where he lost to Reform UK’s Rupert Lowe. He had previously twice failed to unseat Jeremy Corbyn in Islington North. Clark went on to set up the APPG in November.
The MoD imposed restrictions on another role Clark later took as a director at consultancy firm Flint Global, including bans on lobbying or advising firms with MoD contracts. However, no such restrictions were applied to his APPG work. Corporate sponsors of the APPG were offered two levels of membership. For £1,499, firms in Tier 1, including Israeli-owned RUK Advanced Systems Ltd, were given “opportunities to network with MPs and policymakers.” The “tailored” tier 2 membership for “prime contractors, venture capital firms and major stakeholders seeking more substantial involvement” cost £5,000.
MPs in the group frequently advocated for the interests of defence tech companies, meeting ministers and asking numerous parliamentary questions on everything from defence spending and space policy to procurement and autonomous weapons. The defence tech group’s first parliamentary reception, held in March, was addressed by veterans minister Alistair Carns and attended by various MPs and peers.
The group’s agenda aligned with government priorities. Britain’s defence review in June stressed the growing importance of autonomy and AI, and ministers have pledged record increases in defence spending. In July, the government announced changes to the rules for ministers and advisers leaving office, scrapping Acoba – the watchdog long derided as toothless – and promising tougher oversight.
Peter Munro of the UK Anti-Corruption Coalition emphasised the need for substantial reforms: “Without substantial reforms, the revolving door between public sector and private interests will keep spinning freely. If the government is serious about closing loopholes, it should empower its new ethics and integrity commission