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Former Conservative supermarket boss Richard Walker is set to be made a Labour peer, it is understood.
The executive chairman of Iceland will be one of around 25 new members of the Lords appointed by Sir Keir Starmer in the coming weeks, as first reported by the Sun on Sunday.
A Labour source said: “Richard Walker is a committed champion for families dealing with the cost of living – from campaigning to make infant formula more affordable to helping customers avoid loan sharks.
“He will be a strong voice in Parliament and we are delighted to welcome him.”
Mr Walker previously donated to the Conservatives and explored standing for Parliament for the party, but quit in 2023 before backing Sir Keir’s Labour at last year’s general election.
At the time, he said the Tories had “moved away” from him, while Labour had “moved towards the centrist pragmatic views that I’ve long held”.
Mr Walker has also campaigned on a number of social and environmental causes, including reducing the use of plastic and calling for a cap on the price of baby formula.
Earlier this year, he announced that Iceland customers who report shoplifters would receive a £1 reward, saying shoplifting prevented businesses from lowering prices.
Despite its sweeping Commons majority, Labour is outnumbered in the Lords, where the Conservatives remain the largest party.
Along with Liberal Democrat and Crossbench peers, the Tories have managed to delay key legislation, forcing a concession last month on Labour’s flagship Employment Rights Bill.
Appointing 25 new peers would narrow the gap between Labour and the Conservatives, but still leave Sir Keir’s party almost 50 seats behind until the Government is able to deliver its manifesto commitment to kick hereditary peers out of the Lords.