The government is set to reject Reform UK’s offer to cover the cost of the upcoming Clacton by-election to be contested by Nigel Farage, City AM understands, in a move that could leave the taxpayer facing a bill of more than £200,000. After Nigel Farage announced he would stand again
Mauricio Alencar
Wednesday 08 July 2026 5:46 pm
The government is set to reject Reform UK’s offer to cover the cost of the upcoming Clacton by-election to be contested by Nigel Farage, City AM understands, in a move that could leave the taxpayer facing a bill of more than £200,000.
After Nigel Farage announced he would stand again for election in Clacton to “stick two fingers” to the “establishment”, his party said it would foot the bill for the vote.
But a government source said the offer is likely to be snubbed as it would break rules on donations.
“It’s a hard no to Farage paying for his own election,” the source said.
The Treasury and the Debt Management Office are able to accept donations from businesses and members of the public but rules state that transfers cannot be tied to an area of public spending or “specific purposes”.
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Farage announced his resignation on Tuesday after weeks of heavy scrutiny over his finances. He is currently under investigation by the parliamentary commissioner for standards over a £5m donation from crypto billionaire Christopher Harborne and alleged payments and gifts sent by Farage’s ally George Cottrell.
The Guardian reported on Tuesday evening that Harborne’s £5m was reported to the National Crime Agency by bankers concerned about money laundering. The newspaper also reported on a letter sent by Bank of England governor Andrew Bailey to a Labour MP.
Bailey said he was able to “spot” a lobbying attempt by Farage over stablecoins regulation and that no policy changes had taken place as a result of interventions by the Reform UK leader.
Farage versus Binface
The by-election was confirmed on Wednesday afternoon by Chancellor Rachel Reeves, who accepted the Reform UK leader’s request to be appointed Steward and Bailiff of the Manor of Northstead, the ceremonial title given to MPs who resign from parliament.
Read more Nigel Farage asks the crudest question: are you with me or against me?
All main political parties – the Conservatives, Labour, the Greens and the Liberal Democrats – confirmed they would not send candidates to Clacton to stand against Farage.
It means that voters in the constituency are set to choose from Farage and Count Binface on the ballot sheet. Binface is a novelty candidate that regularly stands against prominent politicians in a comedic gesture.
Betting odds have been slashed on Binface to beat Farage, with William Hill putting his chances at 4/1 compared to 1/6 odds for Farage,.
Reeves called Farage’s resignation a “farce and a desperate distraction”.
“If he wants to spend the summer arguing with a bin, I won’t stop him,” she added.
Tory leader Kemi Badenoch also suggested that Binface could beat Farage during broadcast interviews. She mocked Farage’s statement on Tuesday suggesting the election would be a “people versus establishment” vote, claiming “Farage might be looking like the establishment, and Count Binface may be the people”.
Binface, a political act played by Jonathan Harvey, has stood as a candidate in multiple key elections. He ran to be London mayor twice and contested the likes of Theresa May and, more recently, Andy Burnham in parliamentary elections.
His parodic policies have previously included nationalising the singer Adele, reintroducing the teletext service Ceefax, building at least one affordable house and to “cut your taxes, and raise everyone else’s”.
Reform UK did not respond to requests for comment.
Read more ‘If you find yourself stuck in politics, the thing to do is start a fight’
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