UK regulation discourages corporate political donations but is relatively benign in respect of individual donations. Few UK listed companies make political donations but many more company directors do. We use a unique, hand-collected dataset of political donations to examine whether UK corporate political connections are perceived as being created indirectly via directors’ personal donations. Basing our tests on the sensitivity of company returns to opinion polls preceding the 2010 General Election we find that, on average, firms in industries which donate only to the Conservative Party exhibit higher sensitivity to the electoral success of the Conservatives. However, within industries, there is no consistent evidence that the firms which employ directors who make these donations exhibit higher sensitivity than firms which do not. We justify basing our inferences on return sensitivity to polls by confirming that UK domestic political risk, as proxied by opinion poll changes, is priced around General Elections.

We use unique workplace and employee-level data to evaluate a major UK government pilot program to increase qualification-based, employer-provided training for low-qualified employees. We evaluate the program’s effect using a difference-in-differences approach. Using data on eligible employers and workers we find noevidence of a statistically significant effect on the take-up of training in the first 3 years of the program. Our results suggest that the program involved a high level of deadweight and that improving the additionality of the subsequent national program is crucial if it is to make a significant contribution toward government targets to increase qualification levels.