Nigel Farage has admitted that undercover footage at the centre of Reform UK's foreign-donations controversy “looks bad”, while continuing to insist that the party has broken no law and accepted no illegal money.
The Reform UK leader made the admission on Sunday as pressure continued to build over footage obtained by undercover investigators showing senior party figures discussing political funding arrangements involving an overseas donor.
Farage said Reform was not the first political party to become embroiled in a donations controversy and predicted that the party would face further investigations as scrutiny of its finances intensified.
Farage: ‘This looks bad’
Speaking to the BBC's Sunday with Laura Kuenssberg, Farage acknowledged the damaging appearance of the footage.
He said: “This looks bad.”
He also said he had “frankly wasn't listening” during one of the recorded conversations and sought to distance himself from suggestions that he had knowingly approved any unlawful funding arrangement.
Farage has repeatedly maintained that Reform UK accepted no illegal donation and that no law was broken.
Undercover footage at centre of row
The controversy follows an undercover investigation by Channel 4 News and the investigative group Verbatim.
The footage showed discussions involving senior Reform figures about how money linked to an American donor could potentially be used to support political activity in Britain.
One strand of the reporting concerned polling carried out for the benefit of Reform, while another involved discussion of a possible future donation worth £500,000.
The reported proposal involved the possibility of money originating with an American donor being routed through his UK-based son.
No such £500,000 donation was ultimately made, and Reform denies that it accepted unlawful foreign money.
Two senior Reform figures stepped down
James Orr, Reform's head of policy, and senior aide Dan Jukes stepped down from their roles after publication of the undercover footage.
The party launched an internal investigation and said the process should be allowed to proceed independently and without prejudice.
Reform chairman Lee Anderson said the departures were the right course of action and described the affair as a distraction from the party's conference in Birmingham.
Police assessing complaints
The Metropolitan Police has said it is aware of reporting concerning alleged breaches of political-donations law and is assessing the matter and information provided to it.
That is an important distinction: police have not announced a criminal investigation or made any finding that Reform UK, Farage or any individual broke the law.
Labour and the Liberal Democrats have both submitted complaints over the allegations.
Electoral Commission considering information
The Electoral Commission has also said it is considering relevant information within its regulatory remit and is in contact with the Metropolitan Police.
Under UK electoral law, political parties are responsible for ensuring that donations come from permissible sources and for reporting qualifying donations in accordance with statutory rules.
The Commission has stressed that political parties themselves are responsible for ensuring their internal donor-vetting processes comply with the law.
Reform insists no unlawful money was accepted
Reform UK has characterised the undercover operation as a politically motivated hoax and denies wrongdoing.
Farage previously said that the party had “taken no illegal money” and argued that some of the recorded discussion amounted to loose or informal talk rather than an actual funding arrangement.
Robert Jenrick has also defended the party's position, saying legal advice obtained by Reform supported its view that the law had not been broken.
The existence of that legal advice does not amount to a regulatory or judicial finding, and the Electoral Commission and police remain responsible for deciding whether any formal action is warranted.
Row deepens scrutiny of Reform finances
Farage's acknowledgment that the footage “looks bad” marks a notable shift in tone from his initial response, which focused heavily on attacking the methods and motives of the undercover investigation.
His comments also underline the political damage caused by the affair even in the absence of any established breach of electoral law.
For Reform UK, the immediate challenge is therefore twofold: defending itself against allegations of improper foreign funding while demonstrating that its internal controls are robust enough to prevent any future breach.