Housing Secretary warns Reform crypto donations may face retrospective caps

Angela Rayner has cautioned that the record-breaking £72 million raised by Reform UK from two cryptocurrency billionaires could be subject to new legislative restrictions. The housing secretary stated that forthcoming rules on political donations from individuals living abroad or those who have recently returned to the United Kingdom will be applied retrospectively. These measures are designed to close perceived loopholes in election funding, with ministers arguing that non-resident billionaires should not be able to purchase influence in British democracy.

The warning follows the disclosure that Ben Delo and Christopher Harborne each donated £36 million to Reform UK within a 24-hour period. Together, these gifts represent the largest individual donations to a British political party on record. The combined sum exceeds the approximately £69 million donated to all UK political parties combined in the previous year. Rayner described the potential reversal of these funds as a live question, emphasising that the government’s position is that individuals who do not pay taxes in the UK should not be able to exert such significant financial influence on the political system.

The government’s Representation of the People Bill proposes to cap donations from British citizens living overseas and certain recent returnees at £100,000 per year. The relevant provisions are expected to be backdated to March. Whether the specific gifts from Delo and Harborne will be affected depends on their status under the new regulations. Harborne has resided in Thailand for decades and holds Thai citizenship, while Delo recently returned to Britain after living in Hong Kong. Reform UK maintains that both men are British citizens entitled to donate and that all contributions complied with Electoral Commission rules and UK law.

Robert Jenrick, the party’s Treasury spokesman, stated that Reform had no reason to return the money. He expressed confidence that the donations were lawful under both current rules and the forthcoming legislation. The infusion of capital provides Reform with a substantial financial resource as leader Nigel Farage seeks to convert polling momentum into the organisational infrastructure required to contest hundreds of constituencies at the next general election. The party intends to hire up to 400 campaign managers in target seats and recruit policy staff, describing itself as being on election footing. Jenrick added that the funds would allow the party to be battle ready regardless of when the next election is called.

Farage expressed gratitude for the donations, arguing they would enable Reform to compete on a level playing field with established parties. Harborne, who donated £9 million to the party last year, stated he expected nothing in return, such as a peerage or policy changes. Delo, who co-founded the cryptocurrency exchange BitMEX, said his contribution was calculated to provide roughly £1 million per month until the latest possible date of the next election. Reform deputy leader Richard Tice noted that Delo paid upfront to prevent the Labour Party from legislating against the donation.

The issue has sparked debate over donation limits. Labour MP Stella Creasy has proposed a £100,000 annual cap, while the Greens support a £500,000 limit. Transparency International UK stated that the recent donations made an irrefutable case for restrictions. However, Labour faces internal difficulties regarding broad caps due to millions received from trade unions. Rayner defended this distinction by arguing that union funding comes from millions of ordinary members. Farage is currently facing a parliamentary standards investigation over a separate £5 million gift from Harborne, while the Metropolitan Police is examining allegations concerning Reform’s finances. Both the party and Farage deny any wrongdoing.