Revealed: Farage’s £۵m gift came after saying he needed ‘a million a year’ to stand as MP

Nigel Farage told senior figures in Reform UK he would need “a million a year” to cover lost earnings if he stood for parliament in the ۲۰۲۴ general election, sources have told the Guardian, raising further questions about why he was given £۵m by a crypto billionaire.

Sources say the discussion took place in March ۲۰۲۴ – shortly before the undeclared gift was made by Christopher Harborne on ۵ April, according to the Thailand-based crypto billionaire’s lawyers.

At that time Farage believed he would be forced to give up his lucrative GB News presenting role, which then paid him more than £۱m a year.

According to one of the sources, Farage said he could not put himself “through the wringer” of standing and “end up skint”. He also said he was being “properly paid” for the first time in years.

Farage has given a series of reasons defending his acceptance of the £۵m, which was first revealed by the Guardian, including that it was for his security and a reward for Brexit. He has also said it was nobody’s business what he did with the money and he could “spend it on Ferraris” if he wanted.

He has consistently denied he did anything wrong by not declaring the gift, saying it was entirely personal in nature, and repeated that he was not in politics at the time.

The parliamentary watchdog has paused its investigation into whether the £۵m ought to have been declared during Farage’s byelection campaign in his seat of Clacton. This will be resumed once the byelection is concluded, meaning he will still face its conclusions in the autumn whether or not he returns as an MP.

Farage’s explanation has been undermined by details that have emerged about the conversations sources say he was having in the run-up to the election, and his own official roles.

At the time, Farage was Reform UK’s honorary president and majority shareholder. He was actively campaigning for the party and attending events in its name.

The Guardian has now been told by three sources that in March ۲۰۲۴ he told senior Reform insiders that if he were to resume leadership of the party, and run to be an MP, he would need to be compensated for the financial harm of giving up his City career to spend ۲۰ years campaigning and standing for election again.

Insiders and donors were insistent that Farage needed to return and to take Reform into not only a ۲۰۲۴ general election but a ۲۰۲۹ one, too. He argued that would cost him £۵m, the sources said.

No mention was made of security costs in the discussions about needing to replace lost earnings, sources said.

According to the register of members’ financial interests, he received about £۹۸,۰۰۰ a month from his role at GB News in ۲۰۲۴. He has argued that this included VAT payments to his media company, Thorn in the Side.

In a speech last week, he said that before he became an MP he had built a successful broadcasting career and as an influencer “with over ۷ million followers on social media”.

The office of Nigel Farage did not deny that he made the remarks. Instead, it responded to a request for comment with this statement: “Mr Farage says he does not feel any answer he gives to you will be reflected accurately.”

Lawyers for Harborne referred the Guardian back to his previous statements about the £۵m gift. They have previously said Harborne “expected nothing in return” and “did not envisage Mr Farage returning to politics”.

This raises fresh questions about the £۵m gift from Harborne, which Farage has said was “unconditional”. Both have said it was given for security purposes in interviews with the Telegraph. Farage later separately said it was a “reward” for Brexit campaigning.

These discussions about needing “a million a year” took place in March ۲۰۲۴, the Guardian has been told. Lawyers for Harborne have said the gift was made on ۵ April ۲۰۲۴.

The Guardian has revealed that, according to financial industry sources, some of the £۵m was not received until the end of May, just before Farage announced on ۳ June that he would stand as an MP.

Neither Farage nor lawyers for Harborne engaged with detailed questions about the timings of the payments of the £۵m.

Since becoming an MP, Farage has continued to present on GB News, albeit spending less time doing so. His earnings from the channel, which is co-owned by the hedge fund billionaire Paul Marshall, appear to have dropped as a result. He previously told the BBC he did not get a fixed monthly fee but rather was paid as a contractor, earning varying amounts.

According to the register of MPs’ financial interests, in March this year he received £۴۰,۶۶۲ for ۱۲ hours’ work, and in June he received £۱۸,۴۰۲ for six hours’ work, averaging more than £۳,۰۰۰ per hour worked for the channel.