Why has Nigel Farage resigned as an MP?

0:00How does a banana trigger a CIA-backed coup? Do AirPods herald the arrival of a new global order? What do LED lights say about the future of humanity? I'm Ed Conway, and in each episode of my new podcast, Stuff Matters, I take an object, crack it open, and reveal the world-shaping forces hidden inside. This is economics told through the things we think we understand. Search Stuff Matters on your podcast app to listen and follow.

0:33News, the full story first.

0:40Hi everyone, Neil here, host of This Is Why and Luke. Plenty of politics around at the best of times these days, but I make no apologies for returning to it. Again, we had thought we would be focusing on Prince Harry and his case against the male newspapers. We may well pick up on that a little later on in the week. But Nigel Farage has been in and out of the papers in recent times, mostly because of questions around his financial probity. A number of accusations have been made, all of which have been denied by the reformed party leader. But they, in essence, go into two parts. One, about a£5 million donation that was made by a crypto billionaire.

1:14The other, assistance that has been provided to him, financial and otherwise, by someone called George Cottrell, a friend of Nigel Farage. Parliamentary standards are now investigating. So, when we all saw a tweet on the platform X from Nigel Farage saying he would be making a statement at two o 'clock in the afternoon about his future in public life. Well, look, everyone was on tenterhooks. Here's what he actually ended up saying. Why should I be judged today or in history in the future by Sky News and their ilk? Why should they be the people that decide my fate when, as I repeat, I've done nothing wrong?

1:52I've thought about it hard and I've decided today, today I will resign as a member of Parliament for Clacton-on-Sea, thereby forcing a by-election. So plenty to discuss about those investigations, the by-election, Nigel Farage's future, and who better to do so than with our chief political correspondent, John Craig. John, a day of drama in Westminster. We were told that there was going to be a statement coming from Nigel Farage at two o 'clock. We are speaking an hour after that. What did we learn? Well, he said it was going to be about his future in public life. Well, his future for the time being is going to be quitting the House of Commons and fighting a by-election in his Clacton seat, which obviously he hopes to win.

2:34The people versus the establishment, he's suggesting it's going to be. It's a gamble, of course. What we've heard from Mr Farage is a 20-minute diatribe where he laid into the media, the establishment, and his political opponents to a certain extent as well. But it was very much Nigel versus the establishment. He talked about foul means being used against him by his political opponents and by the media. He singled out the Sunday Times for the latest stories about George Cottrell. Now, George Cottrell is a 32-year-old convicted money launderer in the United States who has joined the long list of people bankrolling Nigel Farage.

3:18He hit out at those stories. They, of course, follow the stories about Christopher Harbourn, who gave him a million pounds. He likened that to winning the lottery. Now, Mr Farage has hit out also the investigation in Parliament against him, and he revealed, he said, despite the fact that many of the things that were written in the article, that's the George Cottrell article, were wholly inaccurate, yet another standards investigation is underway. way. So there's one into the Harbourn donation and now there's another one into the George Cottrell allegations. Now he insisted throughout his 20 minute speech directly to a camera, what looked like a Reform HQ in Westminster, he insisted he'd done nothing wrong.

4:04He'd not broken the law. It was an angry speech. He said he was more angry than he'd ever been. And then at the end, of course, announced what many of us thought he probably was going to announce that he was going to quit his seat in Parliament for now. So in a summer when we have been denied a contest for the leadership of the Labour Party, we're now going to be treated to a summer by-election in Clacton-on-Sea. It's a massive gamble by Mr Farage. He is, however, very confident that he's going to win and his fight will be. I'm taking on the establishment in the political class and also the media as well.

4:42How fair a statement is that for Mr Farage to make, that he is taking on the establishment by resigning, standing in a constituency in which he won a thumping majority at the last general election and relying on the judgment of the voters of Clacton who have already voted for him in great numbers rather than the judgment of the Parliamentary Standards Commissioner whose investigations have now been suspended? Well, first of all, let's just look at the results in Clacton in 2024. He had a majority of around about 8 ,500, and he got a big percentage of the vote. Now, Neil, you mentioned that standards investigation.

5:18Mr Farage's announcement looks like an attempt to frustrate the work of the Standards Commissioner and, indeed, the Standards Committee of MPs, if it gets to that. But I'm not convinced he's going to be successful in frustrating that inquiry because I've got the rules here, Neil. Now, the crucial paragraph in the rules about investigations by the Standards Commission is paragraph 40, and it says this. If Parliament is dissolved or the member otherwise ceases to be a member, which is what's going to happen with Mr Farage, while an investigation is in progress, the commissioner will suspend the investigation until the member is re-elected.

6:01If the member's not returned to Parliament, the Commissioner will decide if it's appropriate and proportionate to resume their investigation. So in other words, there's nothing to stop the investigation being suspended whilst the by-election takes place and then reopened if Mr Farage is re-elected. In terms of the allegations that have been made against Nigel Farage, we should point out, as he mentioned in his statement, I've done nothing wrong, I've not broken the law, I've not misused public funds, but that doesn't mean that he hasn't broken parliamentary rules. What is so significant about the accusations being made about him?

6:37That a rich friend provided accommodation and assistance with staff and that there was a sizable donation made to him in a private capacity that was not tied to any sort of political activity. What is wrong with that, if you see anything wrong with it at all? Well, you just said not connected to any political activity. The fact is that Mr Harbourn was a crypto millionaire, whatever you like to call it. Nigel Farage has been talking about that issue. We now know that he lobbied the governor of the Bank of England, Andrew Bailey, on that subject. This idea that Mr Harbourn is just a friend doesn't really bear scrutiny at all.

7:16I've quoted one rule already. I'll quote another one that's sometimes called the Boris Johnson rule, because Boris Johnson used it in one of his many scrapes with the parliamentary authorities. If you get a big gift, whether it's a free holiday or a financial donation or whatever, from somebody who is just a friend, that's fine. If, however, you get a big gift, a holiday, any other payment in kind or a financial donation from somebody who is a party donor and Mr Harbourn is a massive party donor to reform, then the rules say you should declare it. So the claim that it's all perfectly innocent, it's just like a lottery win, as Mr Farage put it in his statement, doesn't really bear scrutiny because Mr Harbourn is a party donor.

8:05And clearly, George Cottrell has been helping out in political activities. I mean, the latest story about George Cottrell, which was in Monday's Times, was that he actually had a business card saying Reform UK with Nigel Farage's email address on it. So they are linked to his political activities. Now, Mr Farage said in his long statement, it was only during the election campaign or just before it that I decided I was going to be a candidate. But, of course, the idea that Mr Farage wasn't really involved in politics, OK, I think he was something like honorary president before he came back as leader.

8:42But really, I think most reasonable people looking at these donations would probably say, come on, Nigel, you really should have declared that. This is the problem. The secrecy, the fact that he kept changing his story, and also his belligerence. A lot of people will say he's been badly advised. He should have just put his hand up and said, yeah, I'm sorry, I really should have declared this. So you can question his tactics. He really has gone for the nuclear option, if you like, with this by-election strategy. It's a gamble. Yes, he's favourite to win the by-election, but he really is declaring war on not just his opponents, but the media as well, rather than hold his hands up and say, look, I'm sorry, I should have declared it.

9:26I was going to ask you, does anyone care? I mean, clearly plenty of people care about this, but Nigel Farage does not have to please all of the people all of the time. He doesn't even have to please, you know, majority of the people in the seat in Clacton. He just needs to persuade reform voters. And when you look at the data, are we seeing any sign that these repeated stories, and there have been a ton of them now, about Nigel Farage and his financial dealings and his financial probity, do we see any evidence that it's shifting the dial? Well, the latest opinion poll, he talked a lot about the opinion polls in the early part of his statements, show reform still ahead, but with the Conservatives and Labour closing the gap slightly.

10:05The diehard reform UK supporters and voters will take the view, will say, yes, Nigel doesn't have to declare it. They're all lefties. His base, which is probably around about 25%, don't care about all these allegations. We at Sky News have talked to voters in Clacton and the majority has to be said back him. I mean, it's a constituency, I have to say, with a fairly elderly population. It's a constituency that doesn't have that many graduates compared with other seats. That's why he chose Clacton because it's the best possible seat for him to fight at the general election and so it proved. However, all this talk and links particularly with a convicted money launderer, that doesn't look good and the fear that some inside reform have is that it frightens off some Tories who are thinking, hmm, I might vote for Mr Farage.

10:58Oh, hold on, isn't he close to a convicted money launderer and a bit worried about all these donations and perhaps the fact that he was backing a crypto millionaire and lobbying for that type of investment, all that sort of stuff. So, yes, it's damaging. His diehard supporters don't care. But those who are perhaps just thinking about voting reform UK and wavering a bit might be a bit put off by all this.

11:30How does a banana trigger a CIA-backed coup? Do AirPods herald the arrival of a new global order? What do LED lights say about the future of humanity? I'm Ed Conway, and in each episode of my new podcast, Stuff Matters, I take an object, crack it open, and reveal the world-shaping forces hidden inside. This is economics told through the things we think we understand. Search Stuff Matters on your podcast app to listen and follow.

12:06John, I keep coming back to the same question. What on earth does resigning as an MP and standing again in a by-election have to do with the allegations that have been made by, amongst others, the Sunday Times journalist that you've just mentioned, the detail, the factual detail of which has not been challenged by Mr Farage in the main. the only thing that we are waiting for is a judgment from the parliamentary standards authorities. What does calling this by-election have to do with any of that? It's a fight back. It is Mr Farage saying to hell with you lot, I'm going to prove that I'm popular.

12:43I can bring you actually the reaction from Andy Burnham. And he has said that this is a gimmick by Mr Farage designed to distract from serious allegations about his funders. That's the reaction from the soon-to-be prime minister. It is a gimmick. It is a stunt. It guarantees him lots of publicity. It guarantees him plenty of opportunities to attack his attackers in the media and his political opponents. And what was the alternative? He had to respond somehow. He could have just said, OK, I'll wait for the parliamentary inquiry to complete its work. But no, what he's really done is try to throw a spanner in the works of that parliamentary investigation.

13:25And he's come out fighting. He's gone on the attack. Rather than, as I suggested, perhaps he's holding his hands up and say, OK, I should have declared it, he's gone on the attack. He's absolutely defiant, unapologetic, unrepentant and insisting he's doing nothing wrong. However, we know that the rules suggest that perhaps he should have declared this money. And even if he leaves Parliament, the inquiry can be suspended and then reopened again. Now, you're saying, why has he done it? Well, it's a classic Farage stunt, isn't it? Take on the establishment, get publicity. I was quite interested how he talked about how he loved being MP for Clacton and he loved being in Parliament.

14:06I mean, there are those who say he's not a great fan of Parliament because he doesn't attend, say, for example, as much as his fellow Reform UK MPs who are more active in the chamber than he is. But he loves campaigning. Campaigning is what he does best. And he obviously thinks campaigning on the stump, rallies, that is the best way to defeat his opponents. And the people he describes to him are using foul means. That was a phrase he used. Yeah, sure. And on that point, yeah, he absolutely loves campaigning. He also loves complaining. I mean, in that 20-minute address, I'm not sure I've ever heard quite so many mentions of victimhood.

14:43He was lashing out at the media for the treatment that he has received. He also talked about the treatment that his family had received. Yes, he talked about how a journalist from Sky News had approached his daughter. Now, we know that it was part of the broadcasting pool. John, just hold on there because I do have a statement from Sky News. It says this. Nigel Farage has legitimate questions to answer about the gift he accepted from Mr Cottrell. Given the clear public interest in this matter, Sky News has been seeking a response from Mr Farage and has made reasonable efforts to contact him. We acknowledge that Sky News was part of a broadcast pool operation outside a property linked to Mr Farage yesterday.

15:23We approached the property off camera on a single occasion, identified ourselves and the occupant chose not to engage. John, just explain exactly what we were doing as part of, in inverted commas, a broadcast pool. A broadcast pool is where we, Sky News, BBC, ITV, Channel 4 News and even GB News, Mr Farage's channel where he's a presenter, instead of sending five or six reporters to interview someone or attempt to get an interview there's a rota and so we will i don't know for example do monday someone else do tuesday someone else do wednesday whatever that's how it works it's basically pooling resources that's what it's about it's a process that's been going on for years and years and years and as i say gb news the channel on which mr farage presents or has been presenting is part of the pool now So it's an established practice.

16:13Now, he also, during the course of his 20 minutes address, talked about various threats he'd faced. I'm going to leap in at this point, John, because this is something that he has said on a number of occasions and it's really rankled with me, that he claims to be the most attacked MP. There are families of two MPs, I think I could probably mention immediately, that might take issue with that. Well, yes, he has been attacked, but you mentioned Joe Cox, the Labour MP, and Sir David Amish, the Conservatives, murdered. He talked about a distressing incident when he was surrounded by a mob in a pub, which he said he hadn't made public before.

16:50And one of his arguments has been that this money he's received for Mr Cottrell was for security. Now, a few weeks ago, he was saying the money from Mr Harbourn was for security. So his story has changed. The story has had many iterations, hasn't it, John? But ultimately, the central claim that Nigel Farage makes is, I have done nothing wrong. I haven't broken the law. I haven't misused public funds. Yeah, and on security, he complained that he got no public help from the authorities, police or government in the run up to becoming an MP. When he became an MP, he got some help, he said. But then the Labour government cut 70 % of the spending on that.

17:31Now, he has said time and time again that he has to spend an awful lot of money on his personal security. It is unusual. Most party leaders do get some protection. The mayor of London, for instance, gets some. I've no doubt Andy Burnham had some when he was mayor of Greater Manchester. I think those who are sympathetic to Mr Farage will say it's a fair point. He should be getting a lot more public funding for his protection than he is getting. But the fact is he isn't. And he has used the security arguments as one of the justifications for these big donations. OK, John, so this has all been a classic Nigel Farage day.

18:10We're all sitting there waiting to hear from him. We saw a tweet telling us, you know, stand by for a statement about my future in public life. He knows how to play the media in circumstances such as this. But that does not mean that the questions that are being asked of Nigel Farage are in some way improper, because they're just not. And they're not going to go away either. The tweet you mentioned was about midday, two hours before his 2pm statement, although I think it started a few minutes late. I must admit, in those two hours, quite a few of us had worked out probably what he was going to announce.

18:46He was never going to say, I'm quitting politics for good, absolutely not. Why would you when you're ahead in the polls? And so it looked likely that he was going to fight back against his critics in the best way he could, and this is what he will regard as the best way to take them on at the ballot box. He'll be boosted by the very good performance of Reform UK in the local elections on the 7th of May. It's possible there could be more embarrassing disclosures about Mr Farage's finances. Just because the parliamentary investigation is on hold doesn't mean we're not going to get new disclosures about his finances.

19:22There are quite a few unpredictable things that could happen in the weeks ahead. So I'm sorry for those who wanted a quiet summer. Not going to happen. We were cheated out of an election for Labour leader. So now we've got a by-election by the seaside in the height of the summer. Well, I'm sure that plenty of you will have thoughts on that which John and I were just discussing. Maybe you do not care about Nigel Farage's finances. Maybe you care so much that you are currently frothing at the mouth. Maybe you are even a constituent of Clacton and you'd rather wish you would get on with the job rather than running another by-election with the prospect of another one coming in a few months' time.

20:01Do let us know why at Sky.uk is the email address. We're back tomorrow.

20:21light say about the future of humanity. I'm Ed Conway, and in each episode of my new podcast, Stuff Matters, I take an object, crack it open, and reveal the world-shaping forces hidden inside. This is economics told through the things we think we understand. Search Stuff Matters on your podcast app to listen and follow.