Reform UK has defended £72 million in donations received from two cryptocurrency billionaires, asserting that the contributions are entirely legal and will not have to be returned despite proposed government legislation targeting overseas political donors.
Robert Jenrick, speaking as the party's economic spokesman, stated that he does not expect Reform UK will have to return any of the money provided by Ben Delo and Christopher Harborne. Both donors are British citizens who have spent periods living abroad.
The defense comes as the government seeks to amend regulations governing political donations from British expatriates, including a proposed £100,000 cap backdated to March 25. "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," Jenrick said.
Under the government's proposals, limits would be placed on how much British citizens living overseas can donate to UK political parties. Additionally, a minimum residency period would be established, applying the £100,000 cap to individuals who move back to the UK for the remainder of that calendar year and the following calendar year.
Housing Secretary Angela Rayner stated that the proposed rule changes would apply retrospectively, meaning anyone failing to comply would have "to return that money." Rayner clarified that she was not commenting specifically on the circumstances of Delo and Harborne because she does not fully understand their situation.
Addressing Rayner's comments, Jenrick suggested the government might continue seeking ways to change the law to target Reform UK, adding that "nothing would surprise me." However, he maintained that the party's current fundraising remains fully legal. A Reform UK spokesperson subsequently backed this position, stating: "We are 100% confident both [donations] are legal and won't ever have to handed back."
Both Delo and Harborne are understood to have returned to the UK, with Delo having been back in the country since last year. Jenrick noted that Delo returned "in part so that he can comply with the changes to the law." According to a source familiar with the proposed legislative changes, whether the two billionaires are impacted will depend on how ministers choose to define UK residency. The source noted that adopting tax law definitions is one option, though residency rules remain highly complex.
The proposed changes were added to the Representation of the People Bill after being approved by MPs this month, and the legislation is now set for scrutiny in the House of Lords. Rayner explained that the proposals stem "directly as a result" of a review published on March 25 by former senior civil servant Philip Rycroft. Rayner said: "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." She added that the government has also written to the Electoral Commission to explore further measures to protect UK democracy.
Currently, there are no restrictions on the amount of money UK-based donors can contribute to political parties. While the government has expressed determination to tackle the influence of "mega-donors" and has established a new taskforce to address the issue, it did not support calls from some MPs for a blanket cap on donations. However, Rayner left the door open to further restrictions, stating: "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."
The scale of the £72 million donation is unprecedented, exceeding the total amount raised by all UK political parties combined last year. Since the 2024 general election, political fundraising figures show the Conservative Party raised £37 million, while Reform UK raised £35 million prior to receiving the massive sums from Delo and Harborne. In comparison, the Labour Party raised £21 million, the Liberal Democrats £17 million, and the Green Party £1.9 million.
Rayner argued that the reforms are necessary to "protect our democracy in the spirit of individuals not being able to overpower and buy their way into democracy at the expense of those people that are at the ballot box." Meanwhile, Conservative shadow foreign secretary Tom Tugendhat warned against the "Americanisation of politics where money just sort of runs free." While Tugendhat supported the right of individuals to back democratic movements, he cautioned that "what we've got to be careful about is where different industries, where different financial sources raise questions."
Other political figures have called for even stricter measures. Liberal Democrat Cabinet Office spokeswoman Lisa Smart advocated for emergency legislation to cap campaign donations and spending, declaring: "No politician should be able to buy the keys to Number 10." A Green Party spokesperson also urged more robust laws, calling on the Labour Party to "find its spine and support a tight cap on donations from individuals."
Details about the two donors have also drawn attention. In June, it was reported that Harborne, who had been based in Thailand, registered to vote in the UK. Delo stated in April that he was relocating back to the UK from Hong Kong. In recent newspaper columns, both men defended their support for Reform UK. Harborne wrote on Saturday that Reform is a "start-up party" lacking "the benefit of hundreds of years of patronage," while Delo wrote on Friday that he wanted to ensure the party could put up a "fair fight" at the next election.
Delo's background includes a pardon from US President Donald Trump last year regarding a breach of anti-money laundering laws at his cryptocurrency trading platform, BitMex, to which he had pleaded guilty in 2022.
The massive donations come amid wider scrutiny of Reform UK's finances. Last week, police announced an investigation into allegations that the party violated foreign funding laws, following a broadcast by Channel 4 News. Additionally, Reform leader Nigel Farage is being investigated by the parliamentary standards commissioner over whether he should have declared a £5 million gift from Harborne prior to the 2024 election. Both Reform UK and Farage have denied any wrongdoing in relation to these investigations.
