Why is Farage’s Reform accused of violating the UK’s foreign funding rules?

The anti-immigration Reform UK party said two of its senior officials had stepped down on Friday, following allegations that they were secretly filmed appearing to discuss ways to circumvent UK electoral laws on foreign donations.

The far-right party, whose popularity has soared in the past two years, is already embroiled in several other funding scandals involving its leader Nigel Farage. On Friday, it announced an internal probe into the latest case, which was brought to light by a Channel ۴ investigation.

Reform is currently holding its annual party conference in Birmingham, central England.

Here’s what we know about the foreign funding claims and how they could affect British politics.

What did the Channel ۴ investigation show?

Channel ۴, an independent broadcaster, aired footage of senior Reform officials Dan Jukes and James Orr meeting with undercover reporters who were posing as prospective Reform backers from the United States.

In one instance during the programme, which was broadcast on Thursday night, footage was shown of Jukes appearing to talk about a proposal for Reform to receive a ۵۰۰,۰۰۰-pound ($۶۷۵,۰۰۰) donation from one of the men, who was presenting himself as an American financier, through his son, who he said lives in the UK.

The “son” was actually another journalist from investigative group Verbatim, which recorded the exchange.

In separate footage, Orr appeared to discuss a plan for the US donor to fund opinion polls for Reform UK rather than donating the money directly.

He told the undercover reporter that “we just don’t have British-resident donors, British entities, that would support us”.

During the investigation, Verbatim reported that Reform officials arranged for the US donor to pay more than ۳۰,۰۰۰ pounds ($۴۰,۵۰۰) to fund three opinion polls, without disclosing the source of the funds.

Channel ۴ said it had verified the findings from Verbatim, an offshoot of the Centre for Climate Reporting.

What are the UK’s rules against foreign funding for political parties?

Under UK electoral law, political parties may only accept donations from British voters or UK-registered businesses. Donations from individuals or organisations based overseas are strictly forbidden.

In a statement on Friday, a UK Electoral Commission spokesperson said political parties must report all “permissible donations” they accept exceeding ۱۱,۱۸۰ pounds ($۱۵,۱۲۰) and all “impermissible donations” exceeding ۵۰۰ pounds ($۶۷۶).

“Parties are responsible for ensuring their internal processes and controls are fit for purpose,” the spokesperson said. “Information about any potential attempt to evade the controls on donations is for the police to consider.”

How has Reform responded to the allegations?

Following the programme’s broadcast, Reform initially issued a statement denying any wrongdoing and claiming the allegations were a hoax.

In a later statement, however, the party said it was conducting an internal probe and that Orr and Jukes had stepped down pending its outcome.

Orr, the party’s policy head, said he had agreed to step down temporarily and would “cooperate fully” with the investigation.

Jukes, Farage’s long-term aide, denied any wrongdoing but said he had “stepped back from politics in order to clear my name”.

Farage accused the undercover journalists of “entrapment” and told broadcaster LBC, “they got a couple of our contractors to say things that perhaps should not have been said”.

“And as a result of that, you know, they have been removed this morning. And yeah, you know, I’m not happy about it,” Farage said.

“The party has broken no laws, the party has not taken any dodgy money or anything like that whatsoever,” Farage insisted.

Will Reform face legal consequences?

It remains to be seen. The UK’s ruling Labour Party has written to the police asking them to investigate possible criminal offences.

The Metropolitan Police said it was aware of the allegations in the broadcast and would assess any information provided to them.

This does not amount to the formal launch of an investigation.

Why does this matter?

The latest donation scandal is another blow for Reform, which has seen its place as the UK’s most popular party slip in opinion polls in recent months.

Last year, polling by YouGov suggested that Reform had become the most popular political party, and would likely win a UK general election if one had been held then. At that point, Labour was trailing far behind in the polls – projected to win just ۲۷.۳ percent of parliamentary seats, compared with Reform’s ۴۱.۷ percent. The former ruling Conservative Party stood at just ۷ percent.

But a poll this week by YouGov showed Reform now tied with the UK’s left-wing Labour Party with ۲۳ percent support each. The Conservatives have caught up with ۲۰ percent.

This is not the first funding scandal Reform has grappled with, either. In July, Farage dramatically stepped down as Member of Parliament for Clacton amid allegations, also revealed in the UK media, that convicted fraudster George Cottrell, ۳۲, recruited and paid three staff to work on Farage’s social media before the ۲۰۲۴ general election and has continued to allow Farage to use a five-storey Georgian townhouse he rented near Buckingham Palace.

Farage ultimately re-won his seat in Clacton at a by-election but still faces the prospect of a parliamentary inquiry into undeclared funding of ۵ million pounds ($۶.۷m) from Thailand-based billionaire and crypto investor Christopher Harborne, who paid for Farage’s personal security before he announced his candidacy in the ۲۰۲۴ general election. So far, Farage denies all wrongdoing.

This week, Farage told the BBC that the parliamentary inquiry was unfair. He said there was a “wilful attempt, and it’s gone on now for months, to say that everything to do with Reform, that every individual involved with Reform is somehow a crook”.

This is evidence of “the establishment in a very coordinated way fighting back”, he claimed.

However, Justin Fisher, professor of political science at Brunel University of London, told Al Jazeera Reform’s latest donation scandal would further hurt Farage’s standing both within and outside his party, and could cost Reform votes in the next elections.

“If this was an isolated incident, then Reform would probably be able to brush it off,” said Fisher. “But it comes on top of serious questions about a donation to Nigel Farage, and a donation to Reform which allegedly had overseas links. This all contributes to a narrative which Reform is having great difficulty avoiding.”