Campaigners have warned of a “dark day for democracy” after cryptocurrency tycoons gave £76 million to Reform UK, the two largest single donations to a British political party on record.
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The first mammoth sum came from Ben Delo, a British billionaire, who last year was given an unconditional pardon by US President Donald Trump over a Bank Secrecy Act violation.
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It was followed just 24 hours later by Thai-based businessman Christopher Harborne, who claimed his “competitive spirit” forced him to match the donation.
The PM, who has previously backed a cap on donations, has now been urged to bring one in and end billionaire’s “fierce grip” on our democracy”.
Kyle Taylor, Executive Director of campaign group Fair Vote UK, said: “This is a dark day indeed for British democracy. Yesterday £36 million from one individual was unprecedented. Today we are looking at £72 million from just two people flowing to one political party. That’s more than every major party spent total at the 2024 election.
“This takes British politics into completely untested territory. We have never seen this kind of money, from so few people, enter our political system on this scale. Two individuals now have the ability to provide a political party with resources that dwarf the sums we have become accustomed to seeing in British elections.
“And we are watching the political money arms race accelerate in real time. One billionaire gives £36 million and another matches it almost immediately. Where does this end?”.
It comes after Scotland Yard confirmed this week that it was investigating separate allegations the party broke foreign funding laws. Two senior aides – including Dan Jukes, Mr Farage’s former Chief of Staff, were ousted over the incident.
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Mr Farage is also already facing scrutiny over his failure to declare a £5 million gift from Mr Harborne, and has faced questions over his leadership.
Campaign group Best for Britain also called on the PM to review political funding laws.
Cary Mitchell, one of the group’s executive directors, said: “These record-breaking sums, which total more than seven times the largest amount ever given to a political party in our history, should spark huge concern among everyone seeking to protect the UK’s politics from being bought and sold to the highest bidder.
“Labour had the opportunity to act more quickly to tighten funding rules and preserve our democracy, and Andy Burnham must immediately review political funding regulations given this seismic increase of crypto money flowing into our democracy.”
Mr Taylor warned the money was enough to pay for an entire general election, and left mainstream parties unable to compete.
He said: “72 million buys an enormous political megaphone. It can pay for campaign staff, advertising, polling, social media, leaflets and campaigning across the country. It gives a political party the ability to reach millions of voters and build a formidable campaigning operation.
“An ordinary voter donating £10 or £20 simply cannot compete with that. When that level of political power can come from the bank accounts of just two individuals, it undermines the basic democratic principle that everyone should have an equal say in our politics.”
There are no restrictions on the amount of money UK-based donors can give to political parties.
Olly Buston, spokesperson for campaign group Clean Up Westminster, said: “Make no mistake, this is an existential moment for British democracy.
“£72 million from just two people to one political party is a dangerous concentration of financial power. This isn’t about Reform. No two individuals should be able to wield that much power in our democracy, whichever party they support.”
Mr Delo, who moved back to the UK from Hong Kong in order to avoid a proposed cap on donations from overseas voters, was pardoned by US President Donald Trump last year after a conviction for violating the US Bank Secrecy Act.
MPs last week backed measures including a cap on overseas donations at £100,000 and a suspension of funding through cryptocurrency, but the draft legislation still needs to be passed by the House of Lords to become law.
Labour said Reform and Nigel Farage still had “serious questions” to answer about their finances.
Party chairwoman Bridget Phillipson said: “The truth is this is a party of dodgy finances engulfed in scandal after scandal. From alleged secret funding by a convicted criminal, to potential illegal cover-ups of the true source of donations – now confirmed by the Met as under police investigation – to laughing about off-the-books money over champagne and oysters, the questions keep mounting up.
“Nigel Farage even triggered a by-election to try to distract from his undeclared £5 million ‘gift’. It didn’t work, and it won’t work.
“Farage and his party appear to believe that the rules are for everyone else. They need to cooperate with the authorities so we can get to the truth.
“Almost all of their money comes from a tiny set of super-wealthy crypto donors who until recently weren’t even based in the UK. If you want to know who side Reform is really on, just look at who is backing them.”
MPs last week backed measures including a cap on overseas donations at £100,000 and a suspension of funding through cryptocurrency, but the draft legislation still needs to be passed by the House of Lords to become law.
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The PM had previously supported a cap on donations, only to row back after a backlash from trade unions