Clacton could be up for grabs after investigation into Farage’s £5m ‘unconditional gift’

The next British parliamentary byelection is, quite possibly, going to be in Clacton. As in Makerfield, where Andy Burnham just won his seat in parliament, the leadership of a party and the future of British politics is at stake.

For the past five weeks, Daniel Greenberg, Parliament’s commissioner for standards, has been assessing whether Nigel Farage broke the members’ code of conduct in not declaring the £5m gift he received from Christopher Harborne. The investigation is expected to conclude shortly; if Greenberg finds against him, the process will be taken up by the standards committee before the final decision is signed off by MPs.

Farage has repeatedly insisted he is confident that he broke no rules, but others are less sure. In Westminster, people are limbering up for Greenberg to recommend a suspension sufficiently long that it triggers a byelection.

One senior Conservative said the party would support a recall petition that forces a byelection and, if it comes: “We would fight it. We would fight it with everything we’ve got.” Rupert Lowe’s Restore Britain is also planning to “throw the kitchen sink at it”, according to a spokesman.

Others question whether Farage will even contest the seat. One former staffer said: “The way he’s talking, I think he is laying the ground for things to go against him… and I don’t think he will run. I think he will use it as an excuse for a route out.”

Central to Greenberg’s investigation is the code of conduct which states that new MPs must register any gifts worth more than £300 received in the 12 months prior to election. The rules say “purely personal gifts or benefits from partners or family members” do not have to be registered, but “if there is any doubt, the benefit should be registered”. They also require MPs to provide information about financial interests “which might reasonably be thought by others to influence his or her actions”.

Farage has always insisted that he did not need to declare the £5m because it was “purely private”, initially arguing it “wasn’t political in any sense at all”. He later claimed it was a “reward for campaigning for Brexit”.

Last Tuesday, in a series of interviews, Farage said it was “none of the public’s business” what he spent the “unconditional gift” on. “I can spend it on cars if I want to.”

All this may explain why Reform appears to be increasing its presence in Clacton. Through the window of the constituency office, which a few months ago was an empty shell without branding, Reform posters and an inviting sofa can be seen. No one responds when we ring the bell.

The seafood bar it backs on to is home to Reform coffee meetings that are – theoretically – open to constituents every third Tuesday of the month. They are a recent development, the staff say, hosted by councillors and party officials. Farage attends “off and on”. Eagle-eyed residents claim the meetings are being used to discuss future campaign tactics and say they have spotted an uptick in leafleting in recent weeks.

Over the course of Greenberg’s investigation, Reform has quietly deleted from its website documents relating to the Cryptoassets and Digital Finance Bill, the first piece of detailed policy work the party published.

Farage has been criticised for his crypto-advocacy in light of the £5m gift from Harborne, who holds a 12% stake in the cryptocurrency Tether. Last week, Labour referred Farage to the Financial Conduct Authority after it emerged that he had lobbied the Bank of England governor Andrew Bailey last September, urging him to drop plans for a central bank digital currency and restrictions on stablecoins, which would cause problems for Tether.

Reform was approached for comment.

Clacton residents do not seem fazed by the investigation. Last Friday, the hottest day of the year, the arcade was deserted. In defiance of extreme weather warnings, locals headed for the sandy beachfront. “I’m ginger and planning to linger,” one man proclaimed, as a friend smothered his back in suncream.

Most do not have a particularly sunny view of Westminster. “They’re all liars, all corrupt,” said Mitch, a twentysomething local. What about Farage and the £5m? “I don’t have time for politics, it doesn’t really interest me. But anyone receiving that much should have to declare it.”

Regardless of the £5m, some of the Farage sheen is coming off. “This place hasn’t altered since he came into power,” said John, who runs a busy beachside bar which features a cardboard cut-out of Jeremy Clarkson. “He was just looking for a way in. I did vote for him [in 2024], but now I’m on the fence. I’ve not seen him down here since the election.”

His friend, also called John, who was sitting at the bar, felt similarly. “I don’t agree with what he’s said about disabled people. There are a lot of people on PIP [personal independence payments] in Clacton who need it,” he said, instead heaping praise on Conservative leader Kemi Badenoch.

“Once they’ve got our vote they lose interest. I thought he was a breath of fresh air, but he’s no different to anyone else. I don’t think anyone will listen until there’s bloodshed,” he added.

Both men were sceptical about whether a Reform government would change anything. But what about the £5m and the investigation?

”It wouldn’t change my view,” concluded the second John. Beverley, who was walking near the seafront at speed despite the rising mercury, agreed. “I think it’s disgusting. But then all parties are,” she said. Still, it wouldn’t stop her voting for Farage a second time.

“People here like him. The people of Clacton like him.”

Two miles up the road is Jaywick, identified as the most deprived place in England since 2011, and a world away from fortunes made through crypto.

Alfie, an aspiring MC, and his friends hadn’t heard about their MP and the donation, but once informed, they didn’t hold back. “That’s disgusting,” Alfie said. “How many people could use that £5m? I grew up here and I had fuck all. Imagine how that makes me feel.”

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Photographs by Andy Hall for The Observer