Reform UK says it is “100% confident” it will not have to return £72 million donated by two cryptocurrency billionaires, despite proposed changes to the rules governing political donations from British citizens living overseas.
Ben Delo and Christopher Harborne each donated £36 million to Reform, jointly setting a record for the largest individual donations made to a UK political party.
The government is now seeking to change political funding rules, including introducing a £100,000 limit on donations from some British citizens living abroad.
The proposed restriction would be backdated to 25 March, raising questions about whether some already-received donations could ultimately be affected.
Reform insists donations comply with the law
Reform’s economic spokesman Robert Jenrick has defended the donations, saying the party believes they comply both with existing legislation and the rules currently proposed by the government.
A Reform spokesperson went further, saying the party was “100% confident” both donations were legal and would not have to be returned.
Both donors are British but have previously spent time living overseas.
Delo is understood to have returned to Britain last year, while Harborne has also returned to the UK.
Jenrick said Delo’s decision to return was partly motivated by ensuring he could comply with changes to political donation rules.
Whether the donations are ultimately caught by the proposed restrictions could depend upon how the government defines UK residency.
Government plans retrospective restrictions
Under the government’s proposals, British citizens living overseas would face restrictions on the amount they could donate to UK political parties.
A £100,000 limit would also continue to apply for a period after someone returned to Britain.
Housing Secretary Angela Rayner said the changes would operate retrospectively from 25 March and that money received in breach of the new requirements would have to be returned.
However, Rayner did not say whether the rules would specifically affect the donations from Delo and Harborne, saying she was not familiar with their individual circumstances.
The proposals have been added to the Representation of the People Bill after receiving the backing of MPs. They must still undergo scrutiny in the House of Lords before becoming law.
The changes follow a review by former senior civil servant Philip Rycroft into foreign financial influence and interference in British politics.
£72m exceeds all political donations received last year
The scale of the two donations is significant even by the standards of national political fundraising.
The combined £72 million donated by Delo and Harborne is greater than the total amount received by all UK political parties during the previous year.
Before their latest contributions, Reform had raised around £35 million since the 2024 general election.
Over the same period, the Conservatives had raised approximately £37 million, Labour £21 million, the Liberal Democrats £17 million and the Green Party £1.9 million.
There is currently no limit on the amount an eligible UK-based donor can give to a political party.
The extraordinary size of Reform’s latest donations has intensified the wider debate over whether Britain’s political funding system should place greater restrictions on individual donors.
Parties call for tougher political funding rules
The government has established a taskforce to consider the influence of so-called “mega-donors”, although it has not committed to introducing an overall cap on political donations.
Rayner said the objective was to protect democracy from individuals being able to exercise disproportionate influence through their wealth.
Conservative shadow foreign secretary Tom Tugendhat also warned against an “Americanisation” of British politics in which money plays an increasingly dominant role.
The Liberal Democrats have called for emergency legislation restricting political donations and campaign spending, while the Green Party has argued for stronger limits on individual donations.
Reform rejects suggestions that its donors are purchasing political influence.
Jenrick said Delo and Harborne were not “buying anything” and had donated because they supported the party’s political agenda.
Scrutiny of Reform’s funding increases
Reform’s finances have already attracted increased scrutiny.
Police have announced an investigation into allegations concerning foreign funding following a Channel 4 News broadcast.
Separately, Reform leader Nigel Farage is being investigated by the parliamentary standards commissioner over whether he should have declared a £5 million gift received from Harborne before the 2024 general election.
Reform and Farage deny wrongdoing in relation to the respective matters.
The immediate question over the latest £72 million will now depend partly on the final wording of the government’s legislation — particularly how residency is defined — as the bill continues through Parliament.