REFORM UK are involved in a series of legal battles that could cost the party more than £1 million, newly published accounts have revealed.
On Thursday, the Electoral Commission – the independent body which oversees UK elections and political finance – published the accounts of all the main political parties with income or expenditure over £250,000 for the year 2025. The Scottish Greens and Jeremy Corbyn’s Your Party were excepted after requesting extensions to file their accounts, which will instead be published in October.
The accounts showed that Reform UK had the second-largest income out of all the parties on £31.8 million, behind Labour on £44.6m but ahead of the Conservatives on £30.9m.
However, Reform UK reported by far the largest net gain of around £10.2m, only spending £21.6m, while the Tories spent £27.4m for a net gain of £3.5m. Labour’s outgoings of £47.1m outstripped income by around £2.5m.
Below the headline figures, the Reform UK accounts said that the party is “involved in a number of legal proceedings”, and revealed that it had “entered into indemnity arrangements” – a promise by the party to pick up someone else’s legal bill – in connection with “certain litigation”.
Reform UK’s accounts said the party’s indemnities related to “two proposed defamation claims”.
It added: “Should those matters proceed to trial, the party's maximum estimated exposure would be approximately £200,000 plus VAT and £240,000 plus VAT respectively.
“One matter is supported by favourable legal advice, whilst in the other the prospects of success have not yet been determined.”
While the legal cases are not specified, Rupert Lowe – the former Reform MP who now leads the far-right Restore Britain party – last year said he would be suing Nigel Farage, Lee Anderson, and Zia Yusuf for defamation after they accused him of bullying staff.
And in 2024, former Labour leader Jeremy Corbyn said he would sue Farage for a “highly defamatory statement” alleging that he subscribed to an antisemitic conspiracy theory.
The Reform UK accounts further state: “In addition, the company has indemnified a third party in respect of another legal matter. Based on legal advice received, it is considered unlikely that any material further costs or adverse costs orders will arise. Accordingly, no provision has been recognised in respect of these matters.
“The ultimate outcome of the litigation and the amount, if any, that may become payable remain uncertain.”
A fourth case reported in Reform UK’s accounts relates to alleged breaches of data protection legislation.
The party estimated that, if it lost, costs “could be in the region of £360,000 plus VAT and interest”. However, Reform UK claims that legal advice has said it is likely to win that case.
Elsewhere, the accounts also show that an £883,000 loan from a company linked to deputy leader Richard Tice (Tisun Investments Ltd) had been partly repaid (£270,000) and partly written off (£613,000), with the write‑off treated as a donation to the party.
Reform also repaid £250,000 of a £1m loan, with the remainder of the interest-free balance “repayable no later than 30 June 2030”.
