Reform UK’s crypto-billionaire donors could face enhanced checks to prove their ongoing presence in the UK as the Government considers tightening proposed laws after the party received £72 million over the weekend.
Ministers have already moved to introduce a £100,000 cap on the amount of money that can be given to political parties by British citizens based overseas, which would also apply for the first 12 months after any expats return to the UK.
The changes would be backdated to this March, raising questions about whether Reform can keep the twin £36 million donations from Ben Delo, who was based in Hong Kong, and Christopher Harborne, who was based in Thailand.
But amid reports both men have already returned to the country, ministers are looking at how to toughen residency requirements governing political donations.
In a parliamentary debate as part of the second reading of the Government’s Representation of the People Bill in the Lords on Monday, minister Baroness Taylor said: “In addition to introducing a robust regime that ensures donors contributing above the £100,000 annual cap must demonstrate a genuine and ongoing connection to the United Kingdom, we are considering how we will strengthen the residency requirements including ensuring the length of time spent in the UK aligns with broader government policy.”
Government sources said an enhanced test would mean donors also have to demonstrate an ongoing presence in the UK, details of which will be set out shortly.
Areas that have existing residency requirements include immigration law, welfare and tax. For example, HMRC declares people resident if they have lived in the UK for 183 days a year.
Earlier on Monday, Nigel Farage acknowledged Reform UK’s record-breaking windfall may fall foul of Government efforts to clamp down on foreign donors, and hit out against the move to apply the new law retrospectively.
Mr Farage told the BBC on Monday he believed the two donations were “compliant” with the law as it stands, but suggested they would not be acceptable as a result of a law change in the Representation of the People Bill, which has now entered committee stage.
Asked whether Mr Delo and Mr Harborne were UK residents as of March 25, as this would have an impact on their donations, he said: “I’m not going to go into their particular details.
“All I’m going to say is, with the law of the land as it stands, they are both compliant.
“Now, there is talk, and Angela Rayner was talking about this yesterday, there is talk of them retrospectively declaring donations illegally.
“Well, that simply cannot be.”
Meanwhile, party chairman Lee Anderson suggested a Reform government would introduce legislation to stop the unions funding Labour should Andy Burnham’s administration block the £72 million.
“Let’s not forget, it’s up to the British public who runs this country, not Angela Rayner, not the donors, not the unions. It’s up to the British public,” he told GB News.
“And when we do win the next general election, if they want to play silly games, then we can play them games as well and we will introduce legislation that will stop the unions funding the Labour Party.
“You know what? Then game over for the Labour Party. They need to think very carefully.”
Reform UK has started using the funding to expand its staff, including doubling its policy team from 10 to 20 and 400 new field agents, with a new online channel also expected to be broadcast over YouTube, The Times reported.
The Government has said it will set up a taskforce to tackle the issue of “mega-donors” after MPs pressed ministers to go further by imposing a general limit that would also cover domestic donations in its draft legislation.
On Sunday, Communities Secretary Angela Rayner suggested a wider cap was still on the table, saying she wanted to stop people “being able to overpower and buy their way into democracy”.
The Cabinet minister on Monday told the TUC Congress: “Nigel Farage’s sugar daddies made their money in crypto, but there’s nothing cryptic about their motives. They know full well that a Reform government will act in their interest, not the public interest.”
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