Key facts
- Reform UK is preparing for a legal challenge against Labour's attempt to block £72 million in crypto donations.
- The party intends to continue spending the donations, arguing they are legal and the proposed legislation does not apply.
- Labour MPs are concerned that Reform UK will use the legal fight to bolster its anti-establishment narrative.
- The proposed legislation seeks to cap overseas donations to UK political parties.
- Donors Christopher Harborne and Ben Delo each contributed £36 million.
- Reform UK has not disclosed when Harborne and Delo registered in the UK.
Nigel Farage's Reform UK party is gearing up for a legal battle against Labour's efforts to block a record-breaking £72 million in donations from two crypto billionaires. The party plans to continue spending the funds, which were received over the weekend, despite an incoming law that threatens to make such donations impermissible.
Senior figures within Reform UK indicated they are prepared for a court fight, viewing it as an opportunity to reinforce their narrative of being an outsider challenging the establishment. One Reform official stated that the donations are legal and unaffected by the proposed law, adding that the party has a strong record of successfully challenging government plans in court.
Sources close to Reform suggest the party might take the challenge against the retrospective application of the legislation as far as the European Court of Human Rights, citing Article 7 of the European Convention on Human Rights. This approach, however, has been noted as potentially awkward given Farage's stance on the UK's relationship with international courts.
The proposed legislation, which the government argues is necessary to prevent illicit actors from circumventing new rules, aims to impose a £100,000 cap on overseas donations and would be backdated to March 25, 2026. The timing of this backdating is crucial, as it could render the large donations from Christopher Harborne and Ben Delo unacceptable. Reform UK has stated the donations are compliant with current law but has not disclosed when Harborne and Delo registered in the UK.
Privately, Reform UK is reportedly confident and has begun spending the money on expanding staff and launching a new online television channel. Labour MPs, while united in wanting to prevent 'dodgy money' influencing elections, are divided on the strategy, with some concerned that a legal battle could play into Reform's hands by portraying them as victims of an 'establishment' crackdown. Others worry that the focus on Reform's donations overshadows the broader issue of large sums influencing politics.