I had been intending to skip writing this fortnight’s post. There didn’t seem to be much happening, mainly because so much is on hold until Andy Burnham assumes the Prime Ministership. Of course, there are always news stories of relevance to the focus of his blog, but there only seemed to be two main, specifically Brexit-related developments.
One was the demolition of the border barriers between Spain and Gibraltar, in advance of the provisional application of the UK-EU treaty on 15 July which is expected to be formally signed on 13 July. There was also a UK parliamentary debate yesterday showing broad cross-party support for the treaty. This marks an important moment for Gibraltar but also for the Brexit process as a whole in that it resolves the last outstanding issue from the Article 50 negotiations. Those with long memories may recall how, in 2017, there was ridiculous talk from Brexiters, including former Tory leader Michael Howard, of Britain going to war with Spain over this issue. [1]
The other development was a report that the ‘reset’ agreement is near to completion and the delayed UK-EU summit is likely to be held in mid-October. However, another report (£), in the Financial Times, suggested that there are still many unresolved issues and that the summit date remains uncertain. The latter report stated that a particular stumbling block is the UK demand to have a role in EU decision-making, a demand unsurprisingly rejected for the obvious reason that the UK chose to leave the EU.
But within the FT report was a particular sentence, to the effect that the UK demand “was a key part of British attempts to defend the deal from criticism from Nigel Farage’s Reform UK party”. It is yet another reminder of the mess post-Brexit Britain is in: still making unrealistic demands of the EU, still allowing Farage to influence policy from outside government, and still caught in the absurd fantasy that doing so will somehow defuse the criticisms that he would make whatever the terms of any deal. That reminder is all the more stark given the miasma of scandal that has recently gathered over Farage.
So when that led to the extraordinary démarche of announcing on Tuesday his intention to resign from, but re-fight, his Clacton seat, I decided that a post this week was worthwhile after all (albeit, as it happens, a day earlier than my usual Friday morning slot). For, however events now play out, this episode is highly revealing about both post-Brexit politics and the politics of Brexitism.
Farage’s petulance and panic
The circumstances of Farage’s announcement are well-known. In brief, the swirl of questions about financial gifts he has received led to the instigation of a parliamentary standards investigation into, specifically, the £5 million he was given by cryptocurrency tycoon Christopher Harborne. His responses to questions about this have been contradictory, evasive and increasingly tetchy (and, preposterously, he referred to it in his announcement as being akin to a “lottery win”). Then, amid expectations that the standards investigation would rule that he had breached rules on declaration of the gift, a new scandal was uncovered last weekend when the Sunday Times reported (£) that he had been given substantial monetary gifts by convicted cryptocurrency fraudster George Cottrell, which had also not been declared, also potentially breaching disclosure rules.
This was the background to the ‘resign and re-stand’ announcement. In it, Farage elided numerous issues, most of which are irrelevant to the issue of whether he has or has not broken parliamentary rules on gift declaration. These included the nature and extent of his need for security, and who should pay for it, his right to undertake extra-parliamentary work, and his allegations of media harassment of his daughter. There was also another outing for his ridiculous claim to be a successful businessman rather than a career politician. These and other irrelevant talking points are also being endlessly re-hashed on social media.
As ever with Farage, the accent was on his supposed victimhood, refracted through the familiar mix of self-pity and aggression. Notably, though, as has been the case throughout the recent weeks in which his financial dealings have been in scrutiny (including not just gifts received, but payments for his various business activities including the £270,000 he has earned since becoming an MP as a “brand ambassador” for a gold bullion firm), he has lost much of his usual skill in presenting himself as humorous and unflappable. Rather, he seemed petulant and panicky. If so, that suggests that he, too, expects to be found to have breached parliamentary standards since, if not, he could confidently have waited for exoneration.
The populist subversion of democracy
Beyond all the faux-victimhood, Farage articulated a core theme of populism in general, and Brexitism in particular. The link to Brexit was explicit, and made by Farage himself in claiming ‘credit’ for the referendum and for Brexit itself. For all its failure and subsequent unpopularity, and for all that Farage generally says little about it these days, Brexit remains his signature dish. But more importantly, what Farage proposed was that it should be for “the people” of Clacton to decide. To decide what, though? Apparently, they (rather than the media) should judge his probity and they (rather than parliament) whether he had breached the rules on disclosure of gifts. Yet, manifestly, that would be impossible. Without media reports of his conduct, how would people be able to judge his probity? And, certainly, they could not judge whether he has breached disclosure rules until the parliamentary investigation of that has been completed.
So it was a nonsensical proposition, yet it was also a meaningful one. Its meaning is that the sole mechanism of democracy is voting (a principle which does not, by the way, apply to Reform UK’s governing board). This, too, is nonsense, and dangerous nonsense at that. It is what lies behind all the jibes about unelected judges and unelected bureaucrats, jibes which entail that only being voted for brings democratic legitimacy. It ignores that democracy is much more complex than voting and that voting is only one, albeit necessary, condition for its existence. An independent judiciary, a free press, bureaucratic rules for the conduct of representatives, amongst other things, are also vital. Thus what purports to be an absolute commitment to democracy is in fact an attempt to subvert it by hollowing it out.
Here, again, there is a Brexit connection or, rather, an illustration of how Brexit has segued into Brexitism. The idea that the referendum, because it was a vote, gave rise not just to ‘the will of the people’ but rendered all further involvement by judges, civil servants or even parliament itself illegitimate, was one of the most pernicious features of the post-referendum period. Now, Farage is seeking to draw on the same well-spring, by declaring that his by-election will be about ‘the people versus the Establishment’. He even reprised one of the most irresponsible of the appeals to leave voters, to use the vote not to decide on the ostensible issue under consideration but simply to “stick two fingers up at the Establishment”.
If Farage’s gambit succeeds (a question I’ll come back to) then, even if he is subsequently found to have breached parliamentary standards, he will use the result to delegitimize that finding. He has already denounced the process as “political” in order to discredit it as being a motivated attack upon him, but doing so also has the effect of positioning it within the same arena as the overt politics of the voting process. Thus, it becomes possible to say that its findings are irrelevant because ‘the people have spoken’.
The wider issues
However, whilst the outcome of the standards investigation is an important one, both for Farage himself and for the principles it embodies, it’s important to keep in mind that, in itself, it is not the most important issue. The rules on disclosure of gifts are a means to an end, not an end in themselves. That is, they exist to provide transparency about the interests and, perhaps, the obligations of MPs. From that point of view, even if Farage had correctly declared his gifts in line with the rules and, actually, even if it turns out to be true (as he claims) that it was not necessary to declare them, the fact of those gifts is highly significant.
They raise the question of why Farage is so enmeshed with, specifically, cryptocurrency magnates and what that betokens. This question goes beyond the personal gifts he has received to encompass the donations made to Reform UK itself, not least because some of the magnates involved, primarily Harborne, are one of the same. The connection of these issues would arise in relation to any party leader and party but is especially salient in this case because of the peculiar structure of Reform UK and the unique relationship between Farage and the party he created. For, even though he renounced ownership last year, he still has an unusually strong grip on it.
Reform’s reliance on cryptocurrency, both as a source of the wealth of its biggest donors and as the actual currency used for some donations, is unusual and striking. Harborne has given £9 million to the party (the largest ever single donation by a living person to a British political party) in addition to earlier donations of at least £3 million, along with the £5 million to Farage personally. Another cryptocurrency billionaire, Ben Delo, has donated £4 million to the party. Meanwhile, last year Reform became the only major political party in the UK to accept donations in cryptocurrency (although this is to be prohibited, at least temporarily, under recently announced government regulations).
Reform has other major donors, of course, such as venture capitalist and art collector Sasan Ghandehari who has recently pledged unspecified millions of pounds (£). More modestly, £200,000 was given by Anthony Bamford’s firm JCB, whose products, no doubt coincidentally, have recently been promoted and extravagantly praised by Farage and Reform MPs Lee Anderson and Robert Jenrick. But the scale and centrality of cryptocurrency to the finances of both the party and its leader is remarkable. Farage also has his own personal interest in the sector as a substantial investor in, and promoter of, the bitcoin firm Stack BTC.
This does not, as Farage would have it, denote that he and Reform are tech-savvy innovators, geared up for the financial system of the future. Cryptocurrencies are inextricably intertwined with organized crime, money laundering, terrorism and hostile state actors, as the Royal United Services Institute’s research, amongst that of others, has explored. They are also central to Putin’s wartime economy and his attempt to circumvent sanctions, as the RAND organization, amongst others, has shown.
This makes it unsurprising that Farage’s £5 million gift was reported by bankers to the National Crime Agency. It is very difficult to trace the provenance of funds moved through crypto accounts, so banks frequently seek advice from crime agencies when large sums are involved, especially when paid to “politically exposed people”. This latter concept, by the way, was central to the dramatic row that broke out in 2023 when Farage was ‘de-banked’ by Coutts, something which might appear in a fresh light given the more recent revelations.
Nor should the Trump connection be forgotten. Having once dismissed cryptocurrency as a scam, he has since embraced it, seeking to make the US “the crypto capital of the world” and netting a staggering $1.4 billion from his own crypto ventures in the first year of his second term of office. Trump also granted a pardon to Reform donor Ben Delo for his offences relating to anti-money laundering compliance (George Cottrell is reportedly seeking such a pardon for his fraud conviction).
So it is because of, to say the very least, the murky nature of cryptocurrencies and cryptocurrency speculation that the question of whether Farage did or did not break parliamentary disclosure rules is not the only issue of importance. His longstanding commitment to cryptocurrency deregulation was given tangible form with the publication of Reform’s so-called ‘Cryptoassets and Digital Finance Bill’ in May 2025. This (which intriguingly has now disappeared from Reform’s website) claimed to set out a “post-Brexit roadmap to make the United Kingdom the world’s premier hub for cryptocurrency and blockchain innovation”. It might not be unduly cynical to wonder what motivates Reform’s commitment to such legislation and, perhaps even more importantly, to be concerned about the calamitous effects it would have on the British economy were anything like it ever to be enacted.
Back to Clacton
One might certainly wonder exactly how Farage and Reform’s enmeshment with cryptocurrencies squares with their anti-globalist and anti-elitist pretensions (this is probably one reason, along with Rupert Lowe’s even more extreme anti-immigration policies, why Restore Britain is siphoning off some of Reform’s core supporters, although Lowe, himself, can hardly be regarded as a horny-handed son of toil). This in itself makes Farage’s framing of the Clacton by-election rather a farce. But, as things are turning out, it will be a farce anyway, as all the other major parties have very wisely decided not to field candidates. Nor will Restore, providing Lowe’s Musk-backed ethno-nationalist party with a rare opportunity to inhabit the moral high ground.
This creates the prospect of a Farage victory, probably on a very low turn-out, over the joke candidate Count Binface (it seems that actor-turned-fruitcake Laurence Fox will also stand). Or, even more humiliatingly, a defeat by Count Binface. Indeed it is a delicious, and perhaps not entirely unlikely possibility, that Farage’s injunction to voters to ‘stick two fingers up at the Establishment’ might actually yield this outcome. It would be reminiscent of the ‘Boaty McBoatface’ episode or, perhaps more pertinently, H’Angus the Monkey’s election as Mayor of Hartlepool in 2002, but with incalculably greater political consequences.
This bizarre situation has already forced Farage’s supporters into some curious postures. Many are drawing a bogus comparison with the Makerfield by-election (bogus for the obvious reason that the sitting MP did not re-stand for election). Some, such as tedious contrarian Brendan O’Neill, are complaining that the failure of the other parties to stand candidates shows they are insulting the working-class people of Clacton. Others are reduced to delving into the background [warning: link to X] of the comedian behind Count Binface to show that he is an anti-Brexit graduate and a prime example of the metropolitan liberal elite. The idea, it seems, is to suggest that he is, after all, a serious candidate representing the Establishment, which is surely a very perverse route to go down.
All of this is, in its way, highly amusing. Even so, the very farcicality of it is a depressing symbol, not least to the world beyond Britain, of the state of British politics. Of course it is also possible that Farage will wriggle out of things, reversing his resignation and no doubt claiming that he has supposedly won a victory by showing that the other parties are ‘too scared’ to fight him, rather than simply showing their disdain for his antics. It is also possible, whether or not this by-election happens now, that one will be triggered if he is found to have broken parliamentary rules. If so, that would presumably be contested by the other parties in the normal way and he would quite possibly win.
Whilst it is certainly too early to write Farage off, there is a palpable sense, which was growing even before his ‘resignation’, that his star is waning. That matters. It is obviously the case that Farage channels a deep vein of political sentiment that would exist without him, and will continue to exist if he were to depart the political scene. But the way in which he has dominated populist politics in Britain for so long, and the very personal hold he has over the Reform party, mean that if and when his demise comes British politics in general, and Brexitism, in particular will be significantly re-inflected. His own conduct, especially this week, has probably brought that moment closer.
Note
[1] For detailed discussion of the treaty, see my post of June 2025. For discussion of the 2017 episode, and the background to it, see my post from April of that year.
