Reform UK has a “number of billionaires” lined up to make donations, the party has claimed.
It follows speculation that tech entrepreneur Elon Musk is preparing to pump millions into Nigel Farage’s party.
Farage has suggested that talks about a donation from the SpaceX, Tesla and X owner are underway following a meeting between the pair at US president-elect Donald Trump’s Mar-a-Lago resort in Florida earlier this month.
Also present at those talks was Reform treasurer and property developer Nick Candy, who said on Monday that Musk could be just the tip of the donations iceberg for the party, which won five seats in this year’s general election, including Farage.
Here, Yahoo News UK tries to make sense of Farage and Musk’s link-up.
Where did all this start?
In November, The Times reported that the world’s richest man was considering a “f*** you Starmer’ donation to Reform UK worth up to $100 million.
The reports sparked disquiet among the other political parties amid concerns at the prospect of significant anti-government advertisements by Reform as well as the influence that such a wealthy individual could wield over politics in the UK.
Joe Powell, the Labour MP for Kensington and Bayswater and the chair of the cross-party Anti-Corruption group, told LBC such a move was “not in the spirit or possibly the practice of our electoral law” and added that “it is illegal for a foreign citizen, someone who is not on the electoral register in the UK, to donate money directly”.
“I am absolutely concerned by that. Reform stood at the election saying they were going to stand up for people not listened to, and yet they are now running around the United States trying to secure funding from a foreign billionaire,” he said.
The report was followed in December by pictures released by the party itself showing Musk with Farage and Nick Candy, the Reform UK party treasurer and husband of Australian singer Holly Valance, at Mar-a-Lago.
Tim Montgomerie, the founder of the ConservativeHome website, who defected from the Tory party to Reform in December, told BBC’s Newsnight programme that Musk could donate as much as $20m (£15.9m) to the party.
Candy told the Financial Times on 23 December: “We have a number of billionaires prepared to donate to the party, not just Elon.
“The Reform party is the disrupter — this is the seed round, the series A. This will be political disruption like we have never seen before.”
Candy, who arranged the meeting between Musk and Farage, said the US billionaire would “be the first of many wealthy donors legally allowed to donate”, although he did not name any others.
“Even the big Tory donors are calling me,” he said. “A lot of people will join us. The movement has started.”
What has Farage said?
In a piece for the Telegraph, Farage claimed the “main purpose” of his visit to the US was to meet Musk.
Praising the South Africa-born businessman’s “contribution to the scale of the Trump victory”, Farage said he had left with “copious notes” on how to recreate the same success with his own political outfit.
However, he remained coy on the subject of money, conceding only that the prospect of a donation had been “discussed” and promising “ongoing negotiations on that score”.
While the Labour Party was mentioned three times in the near-600 word missive, the Conservative Party, likely to be the organisation most threatened by a re-invigorated reform UK, was referred to just once.
Just weeks ago Farage, said although he would “accept money” from Musk, he had never, to that point, “solicited a donation from him”.
Farage also posted a picture to X of himself with Trump’s vice presidential pick JD Vance.
What are the rules on political donations in the UK?
The Political Parties, Elections and Referendums Act 2000 sets out the donations and loans a political party can accept.
A designated treasurer – in the case of Reform UK, Nick Candy – is responsible for making sure financial matters remain above board.
All donations over the value of £500 must be recorded, whether they are:
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Gifts of cash or property
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Sponsorship fees
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Subscription or affiliation payments
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Free or discounted use of office space
Donations worth less than £500 do not have to be recorded, but parties are required to notify the Electoral Commission if they suspect someone may be trying to get around this rule (by making several small donations, for example).
The identify of donors must also be recorded and if the source cannot be confirmed it should be returned – although any interest it accrues in the time between receipt and return can be kept.
Can Musk donate?
Donations to British political parties can only be made by donors registered in the UK, which would appear to automatically rule out the prospect of Musk signing any cheques.
However, rather than make a personal gift, he could instead use the UK arm of one of his companies, such as X, formerly Twitter.
It has also been reported Musk could apply for British citizenship, which his father, Errol, has claimed he would be eligible for through his British grandmother.
There could be potential roadblocks ahead, though. The Electoral Commission has urged Sir Keir Starmer to strengthen political donation rules to protect the electoral system from “foreign interference”. A move being considered by the government could cap the amount Musk could donate through the UK arm of X, The Guardian reported.
What could the money be spent on?
Where Musk’s millions would find a home would likely be dependent on Farage’s plans for the future of the party.
If he simply hopes to disrupt the existing political establishment, the cash could be funnelled into social media campaigns aimed at Tory and Labour voters with the intention of luring them away or even attempting to influence policies or leadership contests.
But if the former UK leader wants to make Reform a genuine electoral force in UK politics, the cash will have to be spent on professionalising the party.
“If Nigel Farage and the party know what they’re doing if they can get the right people, then they can create a national and regional machine,” one campaigning expert told Yahoo News UK.
“You can also spend on research and intellect, people who can sit down and work out policies.
“That amount of money could create the weapon he [Farage] needs to establish Reform as a real political party, not just a campaign group – but only if he knows how to spend it wisely.”
Musk and Farage’s history
While both Musk and Farage have been in the Trump orbit for some time, the latest discussions of a possible donation have been the most significant interaction between the two men.
Following their meeting, Farage posted a picture of himself and Musk on X, the social media platform owned by the Tesla chief, stating: “Britain Needs Reform.”
In reply, Musk said simply: “Absolutely.”
Asked by ITV News about the finance talks, Musk also remained coy, answering “no” when asked if he was planning to hand over £80 million.
The SpaceX owner has been sniping at the Labour government since at least August when he claimed summer riots that broke out in several towns and cities across England showed “civil war is inevitable”.
This prompted a rebuke from the prime minister, who claimed “violent disorder was clearly whipped up online” and pointed the finger squarely at social media firms like X, owned by Musk.
What happened the last time a wealthy businessman tried to take a fringe political party mainstream?
In 1994, millionaire financier Sir James Goldsmith founded the referendum Party to campaign for a vote on Britain’s membership of the EU.
Campaigning in the runup to the 1997 general election saw £7.2 million spent on advertising.
A separate publicity stunt included posting five million VHS video cassettes to households across the UK, which it branded ‘the most important video you’ll ever watch’.
The party failed to win a single House of Commons seat, with Sir James failing to recover his deposit after winning just 3.5% of the vote in Putney.
The party was dissolved shortly after Sir James’s death later the same year, although its dream of a referendum on Britain’s EU membership did eventually become a reality.