Five pressing questions for Reform UK about its finances

Scrutiny is mounting on Reform UK’s finances.On Tuesday, amid an investigation by parliamentary standards into an undisclosed £5m gift, Nigel Farage announced he would resign and trigger a byelection in his constituency of Clacton-on-Sea.His statement came an hour after a deadline to respond to The Guardian’s latest investigation, which revealed that the £5m gift had been reported by bankers to the National Crime Agency (NCA) over money laundering concerns.The Guardian has also revealed he was not alone: transactions worth more than £1m involving other senior figures at Reform had also caused bankers to report their concerns to the NCA via Suspicious Activity Reports (SARs). These are not the same as a crime report. They are an invitation for the NCA to examine a transaction and decide whether it merits further investigation.The disclosures have precipitated Reform’s biggest crisis and led even party supporters to question their leader’s judgment.Here are some of the most pressing questions the party must now answer on the revelations and their consequences.When did Farage receive the £5m?After the existence of the £5m gift was revealed, Reform UK briefed news organisations that it had been received in early 2024. Lawyers for the billionaire Reform donor Christopher Harborne said the gift was given by him on 5 April 2024. Both have suggested that, at the time of the gift, Farage was not actively involved in politics.But financial industry sources told The Guardian that a report on the £5m gift to Farage was made to the NCA several weeks later, on 16 May 2024. They added that at that time, it appeared that not all of the money had been transferred to Nigel Farage’s account. Some of the money did not appear to be received until after he said he would not stand for parliament on 23 May 2024, and before he announced his candidacy on 3 June 2024.Michael Ashcroft’s new book, The Farage Factor, adds to questions over when Farage actually decided to stand as an MP. The book says that Reform had hired Adam Lobo, a former GB News producer, to organise Farage’s campaign launch by mid-May. By 1 May 2024, Farage was also a person of significant control – business jargon for owning and being in charge of a company – of the corporate entity that owned Reform UK, according to Companies House filings.It is unclear what, if any, account Farage may have given to the commissioner for parliamentary standards about when he received the money and his role within Reform at that time. He has claimed previously that it was a personal gift and therefore did not need to be declared.He did not respond to questions from The Guardian regarding the timing of the gift.Where did a separate £1m donation come from?Extensive efforts to trace £1m given in June 2024 to Britain Means Business by Fiona Cottrell, a Reform donor and the mother of the close associate of Farage and convicted fraudster, George Cottrell, have failed, according to sources.Half of this money was transferred into Reform weeks before the 2024 general election.Britain Means Business raises funds for Reform UK. It was previously called Leave Means Leave.Bankers queried the origin of the £1m with Richard Tice, the deputy leader of Reform, according to sources.The £1m was routed via an Australian money exchange called Oneify, which also provoked concerns among bankers, sources told The Guardian.Tice did not respond to questions from The Guardian about this and other transactions.Richard Tice, the party’s deputy leader, is said to have been asked about the origin of a £1m donation to Britain Means Business by Fiona Cottrell. Photograph: Murdo MacLeod/The GuardianShould a loan from George Cottrell to Richard Tice have been declared?Tice received what he described as a personal loan of £80,000 from George Cottrell in late 2024.He told the Telegraph it was a “bridging loan”. It raised concerns among bankers who believed it was connected to a property purchase in Dubai, according to sources.Initially, Tice said he was going to use cash for the purchase, then he changed his mind and said he had got a mortgage, The Guardian understands.Given the loan appeared to be at a preferential rate, and George Cottrell is heavily involved with Reform and a donor to Farage, there are questions over whether Tice should have declared the loan to the parliamentary authorities.MPs must declare “any benefits which relate in any way to their membership of the house or political activities, if provided by a UK source either free or at concessionary rates”. This includes loans.Purely personal gifts and benefits might not need to be declared. “However, both the possible motive of the giver and the use to which the gift is to be put should be considered. If there is any doubt, the benefit should be registered,” the rules state.George Cottrell’s lawyers did not respond to detailed questions that included queries about the loan to Tice.George Cottrell, left, is heavily involved in Reform and a donor to Farage. He gave an £80,000 loan to Richard Tice in late 2024. Photograph: Mark Kerrison/AlamyCan Reform weather the cloud hanging over its finances?Some Reform donors are increasingly unhappy about the scrutiny they will face and the handling of the £5m gift by the party.Mohamed Amersi, who gave £25,000 to Reform in 2025, told the Telegraph on Wednesday that he would not make any further donations “until the cloud hanging over this issue is resolved”. He was referring to the parliamentary investigation into the £5m gift that Farage did not declare.Another Reform donor told The Guardian that they were disappointed by Farage’s decision to hold a byelection before the standards commissioner’s verdict.If he had waited until the autumn, when the decision was expected: “He could have retaken Clacton in the face of attacks by MPs from other parties. That would have been the better victory.”Are there other problems on the horizon?Robert Jenrick, a former Conservative minister who defected to Reform, is facing a police investigation over a £37,500 donation he received as part of his Tory leadership campaign.Robert Jenrick faces a police investigation over a £37,500 donation he received as part of his Tory leadership campaign. Photograph: Stefan Rousseau/PAThe Guardian revealed in April that the Metropolitan police were reviewing the donation after a referral by the Electoral Commission. The Met confirmed they were investigating it on Wednesday.A spokesperson for the force said: “We have launched an investigation following a referral from the Electoral Commission on Tuesday 6 January concerning donations connected to a political party’s leadership campaign. The investigation remains ongoing.”Jenrick said the allegations were “entirely false, but it is no surprise that an establishment determined to stop Reform from delivering the change that this country so desperately needs would resort to making these demonstrably untrue claims”.The investigation looks set to add to the pressure on the party.