Nigel Farage, leader of Reform UK, is facing a parliamentary investigation into allegations that he lobbied the Bank of England on behalf of a significant donor to his party and a major investor in the cryptocurrency sector. The complaint raises concerns about the potential influence of political donations on policy decisions within the UK's financial landscape.
The issue centres around a private meeting between Mr Farage and Andrew Bailey, Governor of the Bank of England, last September. At this meeting, Mr Farage pressed Governor Bailey to drop plans for a British central bank digital currency (CBDC), often referred to as a 'digital pound' or 'Britcoin'. This contradicts public statements made by Mr Farage in October, where he expressed "total and utter horror" at the Bank's plans and vowed to "go to prison" to prevent it.
The complaint was lodged by Labour MP Phil Brickell, chair of the parliamentary group on anti-corruption and responsible tax. Mr Brickell argues that Mr Farage's actions may breach parliamentary lobbying rules, which aim to prevent Members of Parliament from representing individuals or companies who have provided them with payments. A significant donor to Reform UK, Christopher Harborne, has donated £15 million to the party and revealed an undeclared £5 million gift to Mr Farage personally in April.
Mr Brickell highlights that Mr Harborne is a major investor in Tether, a cryptocurrency company. He suggests that a weakening of stablecoin restrictions and opposition to a state-backed digital currency, both positions advocated by Mr Farage, could boost the value and profitability of Mr Harborne's investments. While both Mr Farage and Mr Harborne claim the donations were given without expectation of reciprocal action, the investigation raises questions about the potential for policy advocacy to be influenced by financial interests.
The investigation is being led by Daniel Greenberg, standards commissioner, separately from an ongoing inquiry into whether Mr Farage should have declared the £5 million gift from Mr Harborne before returning to Parliament. Labour MP Joe Powell has also written to the Bank of England seeking details of the meeting with Mr Farage, although the Bank had previously declined to release minutes from the encounter.