Labour has accused Reform UK of operating under a 'stench of sleaze' following reports that Nigel Farage struck a secret deal to return as party leader months before the 2024 general election. The allegations, published in the Sunday Times, suggest Farage was in discussions about a political comeback as early as March 2024, despite later claiming he had no intention of returning until June 2024.
Timeline of secret negotiations
According to the Sunday Times, Farage renegotiated a deal – supervised by his close friend George Cottrell – with then-Reform leader Richard Tice in March and April 2024. Under the terms, once Farage became leader, Reform would repay or write off more than £1m in outstanding loans from Tice's company. The deal was reportedly presented to the party's treasurer in mid-May, undermining Farage's claim that he had not decided to return until June.
Reform sources told the Guardian that Farage had learned of the party's liabilities and what loans would need repaying if he returned, but any plan was drafted for 'if, not when' he became leader. They said he initially decided not to return before reversing that decision.
Undisclosed £5m gift
In April 2024, the Guardian revealed Farage did not disclose a £5m personal gift from Thailand-based crypto billionaire Christopher Harborne. Farage told senior Reform figures he would need 'a million a year' to cover lost earnings if he stood for parliament. Under parliamentary rules, newly elected MPs must register relevant financial interests and gifts received in the 12 months before their election.
Farage has repeatedly said he was an 'influencer' and media personality at the time, so was not obliged to declare the sum. The parliamentary standards watchdog opened a formal investigation into the gift in May. Farage is also subject to another inquiry over allegations he was financially supported by Cottrell, a convicted fraudster.
Political fallout and byelection
Farage, who is contesting the Clacton byelection after resigning as an MP, has accused critics of 'demonising' him as part of a 'coordinated pile-on' to stop Reform. The main parties have declined to field candidates against him; his main opponent is parody candidate Count Binface. If Farage wins but parliament imposes sanctions for failing to declare gifts, he could face removal and a second byelection.
Bridget Phillipson, Labour's chair, said the revelations 'blow Nigel Farage's story apart'. She added: 'It would mean Farage was privately negotiating his return to frontline politics while publicly presenting as someone who hadn't decided whether to return. That raises even more questions about the secret £5m gift from crypto billionaire Christopher Harborne, further undermining his account of why he kept it secret. Grubby pacts, secret gifts, support from a convicted fraudster, attempted cover-ups and police investigations – it all adds up to a stench of sleaze the public can smell from miles away.'
Financial investigations and donations
Financial industry sources have revealed that transactions involving Reform's leadership have been referred to the National Crime Agency. Cottrell and his mother, Fiona Cottrell, have been interviewed under criminal caution by Scotland Yard detectives. Sources said Cottrell, jailed for eight months in the US for wire fraud in 2017 and now based in Montenegro, transferred over $2m (£1.5m) to his mother in 2024, with each sum arriving shortly before she made substantial donations to the party.
Election law allows donations only from permissible donors, including registered UK voters, UK-registered companies, and UK trade unions. It bans concealing or disguising donations from 'impermissible' donors or using 'false' information about a donation. Tice has said Fiona Cottrell was a permissible donor and he understood her son was too.
