Labour is facing a fresh 'cronyism' row after it emerged a party donor won a multi-million pound contract for a project partly overseen by one of its former employees.

Public Digital is helping to run a 'Test, Learn and Grow' initiative across public services as part of a Whitehall reform programme.

The London-based consultancy is being paid £5million as the 'strategic delivery partner' for the Cabinet Office initiative.

This will see 'innovation squads' of policy officials, tech specialists and other experts sent to communities across England to try and deliver better public services.

According to The Times, Emily Middleton - a former partner at Public Digital - sits on the 'programme board' for Test, Learn and Grow.