UK’s Farage faces funding probe as Clacton by-election sparks political storm

UK’s political landscape has shifted again as the Metropolitan Police and electoral authorities investigate the finances of Nigel Farage and his Reform UK party, coinciding with the official scheduling of an unusual by-election.

Police’s special inquiry team has confirmed a criminal investigation into £500,000 in donations made to Reform UK in May 2024, just ahead of that year's general election.

Allegations against Nigel Farage:

As reported by Reuters, UK police was investigating potential offences under laws governing donations to political parties, which could include concealment of the source of funding or giving false information to the treasurer of a party.

Richard Tice, Reform's deputy leader, told local radio the investigation was part of a "politically motivated smear campaign".

"An investigation was launched in February 2025 after a referral was made to the Metropolitan Police by the Electoral Commission relating to donations made to a political party ahead of the 2024 UK General Election," a spokesperson for London's Metropolitan Police said.

Farage has been facing questions for weeks about his party's funds and his financial affairs, including undisclosed gifts from a cryptocurrency billionaire investor and a long-standing political ally, George Cottrell.

The probe focuses on two £250,000 donations from Fiona Cottrell, an aristocrat and the mother of George Cottrell.

George Cottrell—a convicted fraudster who served time in the U.S. in 2017 is a longtime aide and close confidant of Farage.

He went to prison in the U.S. in 2017 after pleading guilty to wire fraud and now works in cryptocurrency.

Investigators are looking into whether Fiona Cottrell was used to mask an impermissible donor.

In response Farage has repeatedly denied any wrongdoing, saying he received the donation from the billionaire crypto investor before announcing his candidacy in the 2024 election, and therefore did not need to declare it.

Farage calls for election:

The Reform leader, who was a vocal Brexit campaigner, abruptly announced earlier this week that he would resign his parliamentary seat and run there again, seeking a vote of confidence from voters to answer criticism about his finances.

Detectives are investigating potential breaches of Section 61 of the Political Parties, Elections and Referendums Act 2000, which strictly forbids disguising or concealing the true source or identity of a political donor.

Two people have been questioned but no arrests have been made, police added, without confirming the names of those involved in the donations being probed.

Clacton By-election set for August 13:

Nigel Farage unexpectedly resigned his seat as Clacton's MP on July 7, 2026.

Facing intense parliamentary standards investigations over his finances—which could have eventually triggered a forced recall petition—Farage chose to "self-detonate" his mandate early.

He claims he wants the voters of Clacton, rather than "the establishment" or the press, to judge his actions.

In an unprecedented move, the UK’s major political parties—including Labour, the Conservatives, the Liberal Democrats, and the Greens have announced they will boycott the election.

They have labeled Farage's maneuver a "fake by-election" and assume it as a publicity stunt designed to pause the parliamentary probe into his conduct.

Investigation against Reform’s leader will continue after elections:

If Farage wins the by-election on August 13 and returns to the House of Commons, the suspended Parliamentary Standards investigation into his £5 million gift will immediately resume.

If found guilty of breaching Commons rules upon his return, he faces a potential suspension of more than 10 days which could trigger yet another recall petition and a second, non-boycotted by-election.