How Elon Musk can flood Reform UK's coffers AND keep it above board - Nigel Nelson

The Government is nervous about how much money might flood Reform UK’s coffers now polls show it is Labour’s main rival. But ministers will be reluctant to do anything about it.

All political parties rely on other people’s money, and the alternative is to finance them through taxation which would be about as popular as a dose of Covid.

But the system as it stands is open to abuse. Most politicians are not inherently corrupt, though headlines over the years might suggest otherwise.

I once sat in the office of a Parliamentary candidate during a General Election when he got up, checked the corridor outside was empty, and closed the door.

“You must never tell another soul what I’m about to say,” he began. “And if you do I shall deny ever saying it.”

This was perhaps the point I should have done a runner. But I had no idea what might come next. A juicy political sex scandal? Corruption in high places? The identity of a Russian spy at the top of his party?

Some of my best stories have come from conversations which started something like that. When someone asks a journalist not to breathe a word what they usually mean is shout it from the rooftops but don’t finger them as the source.

But what the candidate wanted to do was offer me bribe in return for positive coverage in my newspaper.

Looking back maybe I should have asked him how much he was offering as he was a very wealthy man. At least I would have known what I was missing.

But I turned him down flat, and whenever I wrote about him after that I was less flattering than I might have been had he not tried it on in the first place.

Frustratingly I did not have any hidden recording devices on me - after all, I’d only popped in for a chat - so would never have been able to nail him. I had no proof and It would have been his word against mine.

Politicians may have ropey reputations, but this kind of thing is surprisingly rare. And they certainly cleaned up their act following Parliament’s 2009 expenses scandal.

But the will he/won’t he guessing game over whether Elon Musk will donate to Nigel Farage has thrown a spotlight over how politics funds itself.

Permissible donors include any company registered with Companies House, incorporated in the UK or carrying out business in the UK.

“Therefore,” concluded the Commons report, “a multinational corporation, owned by a foreign national, could legally donate to UK political parties if they meet these criteria.”

The best anyone has come up with to deal with this is making it a rule that any donation must come from profits made in the UK.

The bottom line is that the two major parties don’t want to see anything enshrined in law which might give the other a financial advantage.

Labour will moan about wealthy business owners donating to the Tories and the Conservatives will grumble about Labour’s trade union paymasters.

But in the end nothing substantial will be done, and if Farage can get his hands on Musk’s millions no one is likely to get in his way.

No10's last word on party funding was last month when the PM’s spokesman said there would be a “relevant update in due course”. Translation: don’t hold your breath.