Reform UK has begun allocating funds from substantial donations totaling £72 million, received from donors Ben Delo and Christopher Harborne, despite concerns that these contributions might need to be returned. The party is reportedly using the money for increased staffing and the establishment of Reform TV.

This spending comes as the Labour Party has indicated it could pursue legislative changes to disallow such large contributions. Reform's leader, Nigel Farage, has asserted that the donations are fully compliant with current laws. A party source expressed confidence that the funds would not need to be returned.

Reform's chairman, Lee Anderson, suggested that a Reform government would introduce legislation to restrict union funding for the Labour Party if Labour were to take action against Reform's donations. He stated that the British public, not donors or unions, determines the country's leadership and warned Labour against pursuing retaliatory measures.

Government ministers have proposed capping political donations from British citizens residing abroad at £100,000. This proposed change, intended to be backdated to March, raises questions about the eligibility of the £36 million donations from Delo, who was based in Hong Kong, and Harborne, who was in Thailand. Reports suggest both individuals may have recently returned to the UK.

During a parliamentary debate on the Representation of the People Bill, Baroness Taylor stated that the government is considering strengthening residency requirements for political donors. This would involve ensuring donors have a genuine and ongoing connection to the United Kingdom. Further details on an enhanced test, potentially requiring donors to demonstrate a sustained presence in the UK, are expected soon.

Farage has previously acknowledged that the donations might be affected by new regulations but criticized the idea of applying new laws retrospectively. He maintained that the donations were compliant with existing legislation. He declined to specify the residency status of Delo and Harborne as of March 25 but reiterated his stance on current legal compliance and opposed any retrospective declaration of donations as illegal.