![\"Nigel](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2026\/03\/Nigel-Farage-and-Malcolm-Offerd-website.png\")
All the mainstream political parties will boycott the by-election called by Reform UK leader Nigel Farage, accusing him of a publicity stunt as he fights allegations that he broke parliamentary rules by accepting financial gifts.<\/p>\n
Labour, the Conservatives, the LibDems, the Greens and Restore Britain confirmed they would not contest the by-election which Mr Farage wants to hold as early as next month.<\/p>\n
Scottish leader Malcolm Offord and his deputy Thomas Kerr gave the party leader their \u201cunequivocal backing\u201d and praised his decision to put his record directly before the electorate in a by-election.<\/p>\n
However, attempts by those within Reform to help stabilise the party politically came ahead of new claims over Mr Farage\u2019s \u00a35m gift and did little to calm the markets.<\/p>\n
It was reported that the gift from cryptocurrency billionaire Christopher Harborne was referred to the National Crime Agency over bankers\u2019 concerns it may have been laundered.<\/p>\n
Anna Turley, chair of the Labour Party,\u00a0said: \u201cThis is an astonishing and deeply serious allegation. The circumstances surrounding Nigel Farage\u2019s secret \u00a35 million \u2018gift\u2019 absolutely stink.\u201d<\/p>\n
Danni Hewson, head of financial analysis at investment platform AJ Bell, said the affair was starting to impact the financial markets.<\/p>\n
\u201cNo surprise that borrowing costs have edged higher today, as the result of this by-election is likely to be seen as a bellwether for future elections and the outcome could result in renewed and sustained calls for a quick general election,\u201d she said.<\/p>\n
The FTSE 100 closed slightly higher, up 14 points (0.13%) at 10,665.88, but off its high of 10,747 just before 2.30pm when Mr Farage announced in a video statement that he will contest a by-election in his Clacton-on-Sea constituency in order to clear his name. The FTSE 250, a more accurate reflection of the UK economy, was down 0.53%.<\/p>\n
Mr Farage insisted a report in The Sunday Times<\/em> published at the weekend is \u201cwholly inaccurate\u201d and that he has \u201cfinancially done well\u201d, adding that \u201cmaking money is not a crime\u201d.<\/p>\n He has also alleged that the investigation into him by the parliamentary standards watchdog is \u201cbeing used as a political tool\u201d. The standards commissioner is looking at whether his failure to declare the money breached parliamentary rules.<\/p>\n Mr Farage said that the gift will fund the security he believes he needs for the rest of his life.<\/p>\n \u201cI am the most physically and verbally attacked public figure or politician of modern times,\u201d he said. \u201cI\u2019ve decided that the people of Clacton should be the judges of my actions.<\/p>\n \u201cAnd that is why I will be putting my name forward to stand in this by-election. I will fight to win. I will fight to continue the political revolution that Reform has started.\u201d<\/p>\n Calling it a \u201cpeople versus the establishment\u201d by-election, his announcement once again upstaged the Prime Minister who is in Turkey for the Nato summit.<\/p>\n His decision to call a by-election prompted a damning comment from Rupert Lowe who leads rival right wing party Restore and will hope to benefit from any damage caused to Reform.<\/p>\n \u201cThe people of Clacton do not need a media circus descending on their town over a busy tourist season because their MP has made a series of bad decisions,\u201d said Mr Lowe.<\/p>\n \u201cHe should have declared that five million pounds. He knows it. We all know it. Now he is going to weaponise a by-election to distract from that.\u201d<\/p>\n In Scotland, Mr Offord said: \u201cLet us be absolutely clear.\u00a0 We stand four-square behind Nigel Farage.\u00a0 In a democracy, the final verdict belongs to voters.\u00a0 Nigel has chosen not to hide behind process or allow others to define the argument.\u00a0 He is going back to Clacton, facing the public directly, and asking them to decide.<\/p>\n \u201cMillions of people across Britain feel shut out by a political class that too often talks over them.\u00a0 They want representatives who are prepared to stand in front of voters, answer difficult questions and accept the judgment of the ballot box.\u00a0 That is exactly what Nigel Farage is doing.\u201d<\/p>\n Deputy Leader Mr Kerr added: \u201cNigel Farage has our full and unequivocal support.\u00a0 Politics should be settled by voters, not by Westminster games or media campaigns.\u00a0 He has taken the strongest possible course.\u00a0 He is putting his mandate back in the hands of the people who elected him.<\/p>\n \u201cThis campaign must now be won the best way.\u00a0 Street by street, door by door, conversation by conversation.\u00a0 Voters respect politicians who turn up, make the case and trust the public to decide.\u201d<\/p>\n Bulletin:<\/strong>\u00a0Sign up for our breakfast email of the day\u2019s breaking news<\/em><\/p>\n \t <\/div>\n![\"Lord](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2026\/01\/Offord-and-Farage-for-website.png\")