Lord Taylor is an adviser to arms manufacturers BAE Systems, PFI contractor EDS and chairman of Grove Properties Ltd, Canatxx Energy Ventures Ltd. He is a consultant to Shorrock Security Systems Ltd. He gave £2000 to the Labour Party in 2001. 
In January 2009 Lord Taylor of Blackburn was one of four peers who allegedly agreed to accept money from undercover Sunday Times reporters, who were posing as business lobbyists, in return for amending legislation. Both Lord Taylor of Blackburn and Lord Truscott were suspended for six months from the House of Lords for their role in what became know as the 'erminegate' affair. Lord Moonie and Lord Snape were both cleared by the Lords Privileges Committee but were invited to apologise for their "inappropriate attitudes".
Lord Taylor allegedly admitted that he had previously helped to amend a law on behalf of a client. Lord Taylor discussed a £120,000 retainer fee with the undercover Sunday Times reporters and said "I will work within the rules, but the rules are meant to be bent sometimes." 
- Mark Hollingsworth, Peer denies sales pitch for BAE in Lords debate, 'Former defence chief says he did not have to declare interest', The Guardian, 26 January 2004.
- 'Two Labour peers face suspension', BBC, 14 May 2009.
- Nicholas Watt, 'Erminegate: police called to examine corruption allegations in House of Lords', The Guardian, 26 January 2009.