The Guardian view on Reform UK: crypto billionaires must be stopped from undermining democracy | Editorial

The staggering sums gifted to Reform UK over the weekend have transformed the context for the representation of the people bill making its way through parliament. The announcement of two £36m donations from Ben Delo and Christopher Harborne, both crypto billionaires who have lived abroad, makes Andy Burnham’s decision not to impose a limit on political donations – a move he supported before becoming prime minister – look even more misguided. Fortunately the House of Lords still has the chance to amend the bill. It should take it by imposing meaningful limits on both political donations and party spending.

It is unclear whether either man meets the criteria set out in the Rycroft review into foreign influence in politics. It set a maximum of £100,000 per annum for people who have not been in the UK for at least a year. Mr Delo previously lived in Hong Kong while Mr Harborne is based partly in Thailand; Nigel Farage said on Monday that he does not know the details of their movements. While ministers will view the prospect of a legal fight over eligibility with trepidation, they must do what it takes to ensure rules are met.

Ben Delo. Photograph: The Ben Delo Foundation

Reform UK’s support has fallen since a year ago, when polls showed it ahead of Labour, and again since May when it won more than 1,400 seats in local elections. After a summer dominated by investigations of its finances, and with the police widening their inquiries to include footage, aired on Channel 4, of officials apparently discussing ways to get around electoral law, Nigel Farage’s unfavourability rating has hit a 10-year high. But while this reversal of fortune has brought relief to opponents, there is no room for complacency. In 2024, 34% of votes secured a huge majority for Labour. The danger of a Farage premiership and all that it could mean for UK politics and civil society remains real.

Mr Farage no longer advertises his closeness to Donald Trump in the way he once did. But he shares the US president’s enthusiasm for crypto currencies, which is part of a wider agenda of aggressive financial deregulation. Last year he told a conference that he wants to turn the UK into “the world’s premier hub for cryptocurrency”. No wonder that Mr Harborne appears to be competing to be the party’s top supporter with Mr Delo – who was pardoned by Mr Trump following a 2022 conviction for failing to implement adequate anti‑money laundering controls.

The Rycroft review focused on foreign influence for good reason; it is for UK voters to choose their government. But ministers must look beyond the narrow question of outside interference. As well as donation and campaign spending caps, they should regulate party expenditure across the electoral cycle. Otherwise mega-rich donors can pay for years of polling, advertising, data and staff, before election-period limits apply.

A statement from unions is expected to signal a change of heart and support for a cap on donations. Ministers will need to find a carve-out protecting contributions from their members. A mechanism to prevent charities becoming a back door for rich individuals to fund parties is also needed. Democracy is undermined when the vastly wealthy make politics look like an auction, upending norms built up over decades. It is entirely wrong that two wealthy individuals should be able to spend their way to such an influential role in Britain’s political life.