The Conservative Party leader Kemi Badenoch and Reform UK leader Nigel Farage are embroiled in a public dispute over a £5m gift to the Tories from a donor who has also supported Reform. The row threatens to deepen divisions between the two right-wing parties as they compete for voters ahead of the next general election.
Details of the £5m donation
The donation was made by businessman and longtime Conservative donor John Caudwell, who has previously given money to Reform UK. According to Electoral Commission records, Caudwell gave £5m to the Conservative Party in May 2026. The gift has sparked controversy because Caudwell has also donated £500,000 to Reform UK since 2024, raising questions about potential conflicts of interest.
Caudwell, the founder of Phones4u, has a net worth estimated at £1.5bn. In a statement, he said he supports both parties because he believes in "strong leadership on Brexit and immigration." He added: "I want to see the Conservative Party succeed, but I also back Reform's policies on cutting taxes and reducing regulation."
Badenoch's response
Badenoch defended the donation, saying: "John Caudwell is a respected British businessman who has the right to support the party he believes in. We are grateful for his generosity, which will help us deliver on our promises to the British people." She accused Farage of "hypocrisy" for criticising the donation while Reform has accepted money from Caudwell in the past.
Speaking to the BBC, Badenoch said: "Nigel Farage is happy to take Caudwell's money when it suits him, but now he wants to attack us for doing the same. It's a desperate attempt to distract from Reform's own funding issues."
Farage's counterattack
Farage hit back, accusing Badenoch of "selling out" to a donor who has "hedged his bets" by funding both parties. In a video posted on social media, Farage said: "Kemi Badenoch is so desperate for cash that she's taking money from a man who has also funded our party. This shows the Tories have no principles left."
Farage also claimed that Caudwell's donation was an attempt to "buy influence" within the Conservative Party. He called on the Electoral Commission to investigate whether the donation breached rules on transparency, as Caudwell's support for both parties could create a perception of impropriety.
Impact on Conservative-Reform rivalry
The row comes at a time when Reform UK is gaining ground in opinion polls, with some surveys showing them neck-and-neck with the Conservatives. Recent by-election results have seen Reform take votes from the Tories, particularly in Leave-voting areas. The dispute over Caudwell's donation is likely to intensify the battle between the two parties for the same pool of right-wing voters.
Political analysts say the feud could backfire on both leaders. Professor Tim Bale of Queen Mary University of London said: "This looks like a private squabble that makes both parties look petty. Voters want to see politicians focusing on issues like the cost of living and public services, not arguing about donations."
Electoral Commission scrutiny
The Electoral Commission has confirmed it is reviewing the donation to ensure compliance with political finance laws. A spokesperson said: "We are aware of concerns raised about this donation and are examining whether any rules have been broken. Donors must be transparent about their political affiliations."
Under UK law, political parties must declare donations over £7,500 to the Electoral Commission. There is no legal barrier to a donor giving to multiple parties, but the commission can investigate if there are suspicions of improper influence.
