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The potential breaches of the law exposed in an undercover film, what police say, and the party’s likely defence
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Politics — Rowena Mason Whitehall editor
Nigel Farage is facing yet another finance scandal following an undercover investigation into how Reform UK is funded . The potential wrongdoing – denied by the party – appears serious enough to have been immediately referred to the police by Labour and the Liberal Democrats. Here are the main legal issues for Reform and what any investigation will have to consider.
What are the key allegations against Reform?
There are at a number of separate possible strands for the authorities to investigate:
1. That Reform’s Dan Jukes and James Orr orchestrated payments totalling £32,500 for political polling from a donor who aides believed to be based in the US and therefore was not permitted to give money (but who was actually an undercover reporter). The payments should also probably have been declared to the Electoral Commission as a benefit in kind.
2. That Nigel Farage knew about the scheme, and congratulated the fake donors, saying “Boom – it worked”.
3. That a senior aide suggested a proposed £500,000 donation from the impermissible US businessman could be made via a UK intermediary.
4. The same aide suggested that similar arrangements may previously have been used to channel money from foreign sources to Reform through declared UK donors who were family members.
5. That Nigel Farage tacitly condoned the proposed £500,000 arrangement, saying “thank you both” when it was explained.
What are the potential breaches of the law?
The actions of the Reform aides, the party’s registered treasurer and possibly Farage himself could fall foul of section 61 of the Political Parties, Elections and Referendums Act 2000, which covers offences concerning arrangements intended to evade the restrictions on political donations.
Labour believes section 61(1) applies where a person knowingly enters into, or does an act in furtherance of, an arrangement that facilitates or is likely to facilitate a donation to a registered party from a person other than a permissible donor.
The commissioning of £30,000 of polling could apply to this, as well as the attempt to solicit the larger £500,000 donation.
Reform may argue it did not commission the polling funded by the US donor – or that Farage did not know of Reform’s involvement – but the footage makes that difficult.
The law states that a donation to a registered party includes any money spent in paying expenses incurred directly or indirectly to the party.
In relation to the proposed £500,000, it could also breach clauses that prohibit disguising the true source of a proposed political donation through an intermediary – although it is a grey area whether the impermissible donor or the party are ultimately liable for this.
For now, the Met police have said they will assess the matter and any further evidence. No announcement of an investigation was expected on Friday, but sources suggested a full inquiry was a highly likely outcome.
Police are already investigating donations to Reform made by Fiona Cottrell, the mother of Nigel Farage’s aide George Cottrell. The pair have been interviewed under criminal caution by Scotland Yard detectives. In a previous letter to the Guardian, lawyers for George Cottrell said “his mother’s donations have been entirely her own decision, and are a matter for her”. They added that suggestions he “has donated impermissibly to Reform UK are unfounded”.
Scotland Yard is also looking at two donations of £250,000 made to the party by Britain Means Business, a party fundraising vehicle controlled by Reform’s deputy leader, Richard Tice, in the weeks before the 2024 general election. The Guardian previously revealed that Fiona Cottrell made a £1m transfer to Britain Means Business shortly before the donations were made. About half of the funds were then passed to the party.
In a conversation with the undercover reporter posing as the UK-based son of the proposed US donor, Jukes is recorded saying: “But, you know, serious point, [redacted] donates to us, and he donates through his son, the, the [redacted] they donate through their …”
The undercover reporter replies, “Through their kids yeah”, to which Jukes responds: “The [redacted], [redacted], one of the two. [Redacted]. [Redacted]. The [redacted] are Reform donors. It’s the father and it’s the son, so, so that’s one of the ways in which we do it.”
There is the potential for these names to emerge in the course of reporting over the next few days, which may widen the scope of any police investigation.
The watchdog was described in one video as “useless” by Orr, the party’s head of policy, as he debated how donations for polling could be made by the impermissible foreign donor.
It has said the matter is now for the police, but it will surely launch its own investigation into potential failures to make declarations after that is complete – which could lead to fines. The commission may also renew its case for tougher laws and powers on the sources of donor funding.
Reform has suspended the two aides involved, Jukes and Orr, which appears to be the start of a process to distance Farage from the affair.
It is also arguing that it did not formally commission the poll and therefore it was not a benefit in kind. Footage from Jukes and Orr suggests otherwise.
On the £500,000 donation, the party will argue that it never took place and would have been caught by its due diligence processes if it had got that far.
What are the key allegations against Reform?
This report is published with credit to theguardian.com. Full available text from the wire is above. Read on theguardian.com →
Source: theguardian.com · Rowena Mason Whitehall editor. Published 4 Sept 2026, 02:44 pm.
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