Reform confident it won’t need to repay any of £72m under proposed new donor rules
Reform Confident It Won’t Need to Repay £72m Donations
Ninoda.com – Reform confident it won’t need to repay £72m in donations from two cryptocurrency billionaires, even if the government introduces proposed limits on political gifts from British citizens who live overseas.
The party received two donations of £36m, from Ben Delo and Christopher Harborne. Both donors are British and have spent time outside the UK, putting their contributions at the centre of the debate over planned changes to political funding rules.
Robert Jenrick, Reform UK’s economic spokesman, said the party believed the donations complied with current law and would continue to comply with the legislation now being considered.
“These two donations are entirely in line with the law as it is and, as far as we know, the law as it’s going to be in the future.”
Planned cap on overseas political donations
The government proposes a £100,000 cap on donations from British citizens living overseas. The measure would apply retrospectively from 25 March, when a review by former senior civil servant Philip Rycroft was published.
Under the proposal, the cap would also apply to people returning to the UK for the remainder of the year they return and for the following calendar year. The changes have been added to the Representation of the People Bill, which has passed a Commons vote but still requires scrutiny in the House of Lords.
Housing Secretary Angela Rayner said the retrospective date was justified because the government’s intentions and the review’s recommendations had been publicly known since 25 March. Donations that fail to meet the final legal requirements, she said, would have to be returned.
“We said that because of the intention of the legislation and the recommendations, which we accepted, was known in the public domain that it would be retrospective to that date.”
Rayner did not give a view on the individual circumstances of Delo or Harborne, saying she did not know enough about their positions. How the law defines UK residency could be crucial, as residency assessments can depend on detailed personal circumstances.
Reform says both donors have returned
Reform confident it won’t need to return the money because both Delo and Harborne are understood to have returned to Britain. Delo has reportedly been back since last year, while Jenrick said Harborne had returned partly to ensure he could meet the new requirements.
Jenrick argued that further changes could make fundraising more difficult for Reform, but said the party’s legal position remained clear.
“It might be that Angela Rayner or the government keep trying to change the law to make it even harder for people to donate to Reform, nothing would surprise me.”
A Reform UK spokesperson later said the party was fully satisfied that both donations were lawful and would not need to be repaid.
Political finance debate continues
The donations have renewed scrutiny of the role wealthy individuals can play in British politics. There is currently no overall limit on the amount an eligible UK-based donor may give to a political party, meaning the proposed overseas cap would address only one part of the funding system.
The government has set up a taskforce to examine concerns about “mega-donors”, although it has not supported calls from some MPs for a universal donations cap. Rayner said broader action had not been ruled out.
“It’s not as simple as we’re saying we won’t put a cap [on donations], it’s a question of making sure that the task and finish group look at how we implement this.”
Rayner said the aim was to protect democracy by preventing financial power from outweighing the influence of voters. Conservative shadow foreign secretary Tom Tugendhat also warned against political funding becoming unchecked, while saying people should remain free to support democratic movements.
Frequently asked questions
Why does Reform believe it will not need to repay £72m?
Reform confident it won’t need to repay the donations because it says they were legal when made and would remain lawful under the proposed rules, particularly because both donors are understood to have returned to the UK.
What is the proposed donation limit?
The government plans to impose a £100,000 limit on political donations from British citizens living overseas, with the change proposed to take effect from 25 March.
Could the donations still be returned?
That would depend on the final wording of the legislation and how UK residency is defined and applied to each donor’s circumstances.