Ministers to crack down on political donations as Farage faces calls for second inquiry

Reform UK has said gifts given to Nigel Farage were unconnected with his political activities and so did not need to be disclosed. Photograph: Martin Pope/Getty Images View image in fullscreen Reform UK has said gifts given to Nigel Farage were unconnected with his political activities and so did not need to be disclosed. Photograph: Martin Pope/Getty Images Ministers to crack down on political donations as Farage faces calls for second inquiry Measures to be announced to make funding more transparent amid new revelations about Reform UK leader Ministers will launch a crackdown on large political donations on Monday, as Nigel Farage faces a possible second investigation into gifts he received from a convicted fraudster before becoming an MP. The government will announce a series of measures to make political funding more transparent, including restrictions on donations from foreign-based benefactors. But it is under pressure to go further after the revelation that the Reform UK leader received a number of benefits from the crypto entrepreneur George Cottrell before the general election. Those benefits could also become the subject of a new investigation by Daniel Greenberg, the parliamentary standards commissioner, who is already looking into a £5m donation to Farage from the crypto billionaire Christopher Harborne. Announcing the new rules, the communities secretary, Steve Reed, said: “British democracy is not for sale. These tough new rules will shut down dodgy funding, stop foreign money influencing our elections and keep our democracy strong.” Darren Jones, the prime minister’s chief secretary, said: “We’re cracking down on those trying to buy – and sell – our democracy and putting the British people first.” The changes will apply a £100,000 donations cap to anyone who moves to the UK from abroad for a year after they have done so. Officials say this will stop donors from circumventing restrictions on foreign-based donations simply by registering to vote in this country. The government will also bring in new checks to assess whether companies making political donations are legitimate by measuring their profit as well as their revenues. This is designed to stop donors registering businesses in the UK in order to qualify under British elections law but funnelling the profits abroad. Finally, ministers are also planning to bring in disclosure requirements for political candidates for the first time, which will also apply to the period immediately before they became a candidate. Candidates will have to declare any donation above £2,230, though personal gifts will continue to be exempt. While MPs currently have to declare donations above £500, including for a year before they became an MP, unsuccessful candidates are not required to follow the same rules. The package, which will be introduced as amendments to the representation of the people bill later this month, comes amid heightened scrutiny of Farage’s finances. The Sunday Times revealed this