Ministers will launch a crackdown on large political donations on Monday, as Nigel Farage faces a possible second investigation into gifts he received from a convicted fraudster before becoming an MP. The government will announce a series of measures to make political funding more transparent, including restrictions on donations from foreign-based benefactors, a £100,000 cap on donations from anyone who moved to the UK from abroad for a year after doing so, and new checks on companies making donations by measuring profit as well as revenue. The changes will also introduce disclosure requirements for political candidates for the first time, forcing them to declare any donation above £2,230, though personal gifts will remain exempt.
The crackdown comes amid heightened scrutiny of Farage after it emerged that he received a number of benefits from George Cottrell, a longtime aide and convicted fraudster, before the general election. According to a report in the Sunday Times, Cottrell recruited and paid three staff to work on Farage’s social media, and offered him the use of a five-storey Georgian townhouse he rented near Buckingham Palace. Under rules requiring new MPs to register gifts worth more than £300 in the previous 12 months, unless the gift “could not be reasonably thought by others” to relate to political activities, Farage did not declare the support. Reform UK said the gifts were unconnected with his political activities.
“Government cracks down on political donations as Farage faces possible new probe into gifts from convicted fraudster George Cottrell.”
The Liberal Democrats have written to the parliamentary standards commissioner, Daniel Greenberg, asking him to investigate the Cottrell gifts. Greenberg is already looking into a £5m donation to Farage from the crypto billionaire Christopher Harborne. Farage released a statement on Sunday evening calling the allegations an “establishment hit job” and insisting he had followed the rules. He said: “I have done no wrongdoing, followed the rules and I am now considering legal action against the Sunday Times.”
Cottrell, nicknamed “Posh George”, was jailed for eight months in the US in 2017 after pleading guilty to wire fraud for attempting to defraud criminals on the dark web. He first became involved in Ukip as a volunteer in 2016, introduced by his uncle Lord Hesketh. Announcing the new rules, the communities secretary, Steve Reed, said: “British democracy is not for sale. These tough new rules will shut down dodgy funding, stop foreign money influencing our elections and keep our democracy strong.” Darren Jones, the prime minister’s chief secretary, added: “We’re cracking down on those trying to buy – and sell – our democracy and putting the British people first.”
The package will be introduced as amendments to the representation of the people bill later this month. But the question of whether Farage will face a second investigation looms as the standards commissioner considers the latest complaint.