Nigel Farage's 'people versus the establishment' by-election in Clacton will be paid for with taxpayers' cash, officials have confirmed. The Reform leader is set to go head-to-head with Count Binface and the Official Monster Raving Loony Party after resigning from his seat yesterday. None of the major parties are fielding candidates for a race they describe as a 'stunt' and a 'vanity project', with the Green Party pulling out late last night after initially saying it would be standing.
Farage's offer to pay rejected
In a post on X yesterday, Farage wrote that Reform UK had offered to cover the cost of the by-election, saying: 'Given that we asked for this by-election in the first place, it's only right that we pay for it.' However, the Ministry of Housing, Communities and Local Government confirmed on Tuesday evening that it is not possible for a party to pay for a by-election. By law, all UK Parliamentary elections are paid for using public funds – a principle that dates back to the end of the First World War. The money comes from the Consolidated Fund, the government 'bank account' that holds all state revenues. While Reform could reimburse the Treasury for the cost of the election, their contribution would not specifically go towards it.
Official statement on funding
An MHCLG spokesperson said: 'To maintain the independence and impartiality of the electoral process, the law is clear that the cost of running elections must be met from public funds, and not by candidates or political parties. Individuals or groups can of course make voluntary donations to the Consolidated Fund in the normal way, but these are not ringfenced to pay for specific costs or events.'
Cost analysis
Analysis by the Independent found the election could cost more than £275,000 based on the cost of the 2014 Clacton by-election adjusted for inflation. Farage dramatically stepped down as an MP yesterday amid scrutiny of his links to a wealthy criminal aristocrat friend and the £5 million 'gift' he received from crypto billionaire Christopher Harborne before the 2024 election. Shortly after his speech, which was broadcast live on X and YouTube, the Guardian revealed Harborne's gift had been flagged to the National Crime Agency out of concern it may have been laundered money.
Investigations and potential consequences
The Reform leader is now facing two separate probes by the Parliamentary Standards Commissioner, both investigating allegations he did not properly declare support from Harborne and his friend George Cottrell. Farage denies any wrongdoing. If the commissioner finds he did break the rules, he could be suspended and another – involuntary – by-election could take place. The investigation will not go ahead while he is not a Member of Parliament, but would restart if he is re-elected.
Lib Dem calls to block resignation
This morning, Liberal Democrat leader Sir Ed Davey suggested the government could stop Farage resigning from his seat until the commissioner reaches a conclusion. He said it was the 'gift of the government' not to go ahead with the arcane process for allowing MPs to resign, which involves appointing them to a ceremonial position. Davey told the BBC's Today programme: 'There is a precedent going back to 1842 where the Chancellor didn't appoint someone to one of these positions. […] If that appointment is not made, Mr Farage can't resign.' Responding to a report this morning that the government was set to allow the resignation to proceed, the Lib Dem said the move would be a 'huge and unnecessary mistake'.
