Sir Keir Starmer is under pressure to cut Elon Musk’s access to government contracts and funding after the billionaire’s firms raked in more than £190m of taxpayer cash since 2016.
The prime minister is facing calls to prevent the Tesla tycoon’s companies benefiting from taxpayer-funded grants, subsidies and contracts in future after his repeated outbursts against the government over grooming gangs and criminal justice.
Despite his repeated attacks on the PM and his top team, Mr Musk’s Tesla has received £191m from the public purse since 2016, with £188.3m coming from Department for Transport grants designed to increase uptake of plug-in electric vehicles, The Independent can reveal.
The remainder of the government’s spend on Tesla was through local authorities such as the Scottish government purchasing Tesla vehicles and leasing charging points.
The government and local authorities have also spent nearly £300,000 on X, formerly Twitter, since 2016, with the platform having been taken over by Mr Musk for £38bn in 2022. Some £60,000 of this was spent by the Cabinet Office on Brexit-related comms efforts.
The figures, compiled for The Independent by procurement specialists Tussell, led to furious calls for Sir Keir to cut ties with Mr Musk’s sprawling business empire, denying the billionaire access to future taxpayer grants, subsidies and contracts.
Labour MP Joe Powell, chairman of parliament’s cross-party anti-corruption group, said it is “ironic that Musk’s companies have benefitted from nearly £200m of UK taxpayers’ money in subsidies and grants over recent years”.
He told The Independent: “If he is so critical of UK government policies, perhaps he should consider returning the money his companies have pocketed and focus on his business ventures instead of interfering in British politics.”
Alex Sobel praised Sir Keir for calling out Mr Musk’s lies and misinformation about grooming gangs, his record as director of public prosecutions and safeguarding minister Jess Phillips.
And the Labour MP called for an end to any taxpayer handouts for Mr Musk. He told The Independent: “The prime minister has shown the leadership that voters expect from a Labour government in stark contrast to that of the Tories and the populist right that have opportunistically sought to jump on the bandwagon of reckless and baseless claims.
“Corporate giants cannot be allowed to attempt to override democracy by stoking up division and inflaming tensions.”
Sir Keir on Monday accused Mr Musk of spreading lies about grooming gangs and warned the billionaire, as well as the Conservatives and Reform UK, have “crossed a line”.
Without naming Mr Musk directly, the PM said: “Those that are spreading lies and misinformation as far and wide as possible are not interested in victims, they’re interested in themselves.”
He attacked Mr Musk over his claims Ms Phillips is a “rape genocide apologist” who should be in prison.
He added: “When the poison of the far right leads to serious threats, to Jess Phillips and others, that in my book, means a line has been crossed.”
Liberal Democrat leader Sir Ed Davey went further, calling for the government to summon the US ambassador to raise Mr Musk’s tweets.
The call was in response to Mr Musk, who will be a key member of Donald Trump’s administration when the president-elect takes office this month, suggesting the US should overthrow the British government.
And Lib Dem MP Caroline Voaden told The Independent: “Time and time again, Elon Musk has shown not only a lack of understanding about the rules and norms of the democracies he’s interfering in, but also of the very subjects he is campaigning on.
“Summoning the US ambassador to ask about the actions of an incoming US official is an obvious move.
“But the government must also consider the subsidies and grants handed out to Musk’s companies, a whopping £190m of them since 2016. Since Musk regards himself as a man of such high principles, I’m sure he’d agree it’s wrong for him or his companies to financially benefit from a government he’s so clearly opposed to.”
Tesla, X, and the government have been asked to comment.
