We are once again confronted by evidence that our democracy is being undermined. This time by unaccountable organisations that act against the public interest, hiding behind the pretence of being ‘think tanks’ or ‘educational charities’.

The Guardian reports that the Taxpayers’ Alliance has now conceded not only that it illegally sacked the whistle-blower Shahmir Sanni for revealing overspending in the EU referendum campaign, but that it also intentionally vilified him.

What is most interesting here, and of greater significance for democracy, is not that the Taxpayers’ Alliance smeared Sanni, shameful as this is. But that it has also been revealed that the Taxpayers’ Alliance are part of a linked network of right-wing think tanks.

Some of these organisations you may be familiar with. They include the Adam Smith Institute, the Centre for Policy Studies, Leave Means Leave and the Institute of Economic Affairs. Some share offices and it is alleged they coordinate media and other strategy.

The Institute of Economic Affairs is currently under investigation by the Charity Commission for potential abuse of its status as an ‘educational charity’. It was also revealed by undercover investigators that the think tank offered potential US donors access to ministers. The Charity Commission has told me that it will publish the results of its investigation, which indicates they believe it to be in the public interest, as I do.

Beyond their cooperation, there are three things that appear to unite this medley of organisations. The first is an extreme free-market politics at odds with the British public’s support for strong state support and regulation where necessary. The second is a complete lack of transparency in funding and what they actually get up to. Indeed, both the Taxpayers’ Alliance and the Institute for Economic Affairs are rated E, the lowest rating given by Who Funds You, a campaign for think tank transparency.

The third is a seeming disregard for the rules that are supposed to govern their behaviour, be it charity law or electoral law, as we saw with the Leave campaigns. Taken together, these present a serious threat to democracy. Under the current system, highly secretive organisations masquerading as charities and think tanks are able to make dubious political interventions, either publicly or behind closed doors, in pursuit of an extreme agenda. What’s more, this reaches back to the government. As we know, many high-profile Conservatives share the same commitment to extreme free-market politics.

Shamir Sanni was collateral in how these organisations operate, and he has bravely spoken out. But there is potential for much greater damage to our democracy if we do not get a hold of this. So far, the Conservative government has shown absolutely no appetite in this regard, preferring instead to wash its hands despite the fact it is knee-deep. Perhaps they do not want to expose this racket for fear they become implicated.

Or perhaps it is because they, like many of our political elite, have benefited from a form of closed-doors politics, where deals are done in back-rooms, encouraged by opaque financial interests, and where nothing is quite what it seems. What is clear, though, is that this way of doing politics is of the few, for the few. This culture has turned many people off politics and undermined public trust in our political system. It’s time for a government that will rebuild this trust, and to do so we must rebuild our democracy from the bottom up.

Jon Trickett is MP for Hemsworth and shadow cabinet office minister.