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Reform confident it won’t need to repay any of £72m under proposed new donor rules

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Reform confident it won t need to repay £72m under donor plans

Constantvpn.com – Reform confident it won t need to repay £72m received from cryptocurrency billionaires Ben Delo and Christopher Harborne, despite proposed UK rules aimed at restricting political donations from British citizens living overseas.

The government plans to introduce a £100,000 cap on donations from expatriate British nationals. Ministers have said the measure would apply retrospectively from 25 March, while further residency requirements for people returning to the UK are also being considered.

Reform UK economic spokesman Robert Jenrick said the party believed the two £36m donations were lawful under existing rules and would remain compliant once the legislation is introduced.

“These two donations are entirely in line with the law as it is and, as far as we know, the law as it’s going to be in the future.”

Questions over donor residency

Delo and Harborne are British citizens who have spent time abroad. Both are understood to have returned to the UK, with Delo believed to have been back since last year. Jenrick said Delo’s return was partly intended to ensure that he complied with the expected changes.

The final outcome may depend on how the law defines UK residency. A person familiar with the proposals suggested ministers could use a tax-law definition, although such tests can be complex and depend on an individual’s circumstances.

A Reform UK spokesman said the party was completely certain the donations were legal and would not have to be returned. Reform confident it won t need to repay the money because it says both donations meet the legal conditions now and under the proposals as currently understood.

Jenrick said the government might yet seek further changes that could affect Reform’s fundraising, but maintained that the party’s donors had acted within the rules.

Government plans retrospective rules

Housing Secretary Angela Rayner said the new restrictions would take effect from 25 March, the date of a review conducted by former senior civil servant Philip Rycroft. She said donations found to fall outside the new rules would need to be repaid.

Rayner did not comment on the individual circumstances of Delo or Harborne, saying she did not have enough information to make a judgement. She said ministers had accepted recommendations that were already public and had contacted the Electoral Commission about further measures to protect democratic processes.

“We said that because of the intention of the legislation and the recommendations, which we accepted, was known in the public domain that it would be retrospective to that date.”

The changes are being added to the Representation of the People Bill. MPs have approved the bill, but it must still face further scrutiny in the House of Lords. The eventual wording will decide whether earlier donations are covered.

Debate over large political donations

There is currently no overall limit on the amount an eligible UK-based donor can give to a political party. The government has said it wants to address concerns about very large donations and has established a taskforce to examine the issue.

Ministers have not backed calls from some MPs for a broad cap on political donations. However, Rayner indicated that wider limits had not been ruled out and said the taskforce would consider how any new system could work in practice.

The issue has attracted attention because of the scale of party fundraising since the 2024 general election. Reform had already raised £35m before the two £36m gifts. The Conservative Party has raised £37m, while Labour has received £21m.

Reform confident it won t need to return the £72m, but the dispute highlights a wider argument over whether wealthy individuals should be able to make unrestricted contributions to political parties.

“It’s not as simple as we’re saying we won’t put a cap [on donations], it’s a question of making sure that the task and finish group look at how we implement this.”

Rayner said the purpose of the proposals was to ensure voters were not overshadowed by those able to spend vast sums on political activity. Conservative shadow foreign secretary Tom Tugendhat also warned against a system resembling US politics, where money can move with few limits.

UK political donation rules: frequently asked questions

What is the proposed limit for overseas British donors? The planned cap is £100,000 for donations from British citizens living abroad.

Would the rules affect earlier donations? The government says the restrictions would apply retrospectively from 25 March, although the final legal wording has not yet been settled.

Why does residency matter? Eligibility may depend on whether a donor is considered resident in the UK under the definition adopted in the legislation.

Will Reform UK have to return the £72m? Reform confident it won t need to do so, while the final decision will depend on the law passed by Parliament and the donors’ individual circumstances.

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