03 December 2024, 15:43 | Updated: 04 December 2024, 10:45
Elon Musk is believed to be considering giving Nigel Farage $100m to help secure him as prime minister in the next general election.
Read time: 3 minutes
In brief:
- Elon Musk is reportedly considering a $100 million donation to Nigel Farage and the Reform party in the UK, potentially to influence the 2029 election.
- UK election laws have a “loophole” that could allow Musk to donate through a British arm of his businesses, avoiding restrictions on foreign donations.
- The News Agents say this would be a “game-changing” moment for British politics and, potentially, a very dangerous one.
What’s the story?
Not content with just tipping scales to the right in America, it is now believed Elon Musk is seeking to exert his influence (and money) on British politics.
It has been reported that Musk is considering giving $100 million to Nigel Farage for campaigning in the lead-up to 2029 to become the next Prime Minister of the UK.
Farage has claimed that a possible donation from Musk “hasn’t been discussed” with him, but that the billionaire is “very supportive” of his politics.
He told GB News that Musk thinks that if Reform does well in the UK, they can bring about “the same kind of change” in the UK that Donald Trump intends to deliver in the US.
Musk has not commented on the reports, but has publicly celebrated former Tory MP Andrea Jenkins joining Reform. He has also repeatedly used social media to criticise Keir Starmer’s leadership since coming to power in the summer of 2024.
— Elon Musk (@elonmusk) November 29, 2024
Would a $100m donation from Elon Musk be legal?
The UK has strict rules on how money can be donated and spent during an election campaign.
The Political Parties, Elections and Referendums Act 2000 stipulates that all donations and loans over £500 must come from ‘permissible sources’. To be permissible, they must be a voter on the electoral register or a UK company, trade union or LLP.
Therefore, if a donation from Musk were to happen, it’s likely it’ll be made through a British arm of one of his businesses, such as X or Tesla, allowing him to get around existing rules on foreign donations to UK political parties.
The act also places a limit on how much can be spent during an election campaign – £35 million.
But, while there are spending limits during the campaign period, outside of it there is no limit.
The “loophole” the billionaire businessman could use to make such a donation, as Emily Maitlis explains on today’s episode of The News Agents, is if he gives the donation to Farage outside of an election period.
“If it is made to seem apolitical and part of a donation to a person through a corporation, then it is not treated in the same way.”
The UK’s Labour government is now believed to be currently considering a cap on donations as a part of potential electoral reforms.
A new report from the Institute for Public Policy Research, due to be published before the end of 2024, will suggest that donations from individuals and corporations be limited to £100,000 per year.
But, if the donation does come outside of an election campaign, Emily says Labour will not be able to put any rules in place that could “put a stop to it.”
Moreover, any new rules that are agreed upon will not come into effect in this parliament.
“[Labour] are way behind on this when any action from Musk could literally happen in a transfer overnight”.
‘Elon Musk funding Nigel Farage would be dangerous for UK politics’
What’s The News Agents’ take?
“Can you imagine a world in which Elon Musk could essentially buy a UK election?” Emily asks.
Jon Sopel says it would be a “a threat to UK democracy from a foreign citizen who wants to shape what our next General Election looks like.”
Lewis Goodall agrees, saying if it were to happen, it would be a “game-changing” and “dangerous” moment for British politics.
“We’ve had plenty of rich people get involved in British politics before…What we have never seen is the world’s most powerful man, the world’s richest man, who now owns one of the biggest information networks and platforms in the world… who has, or will have, the American state in his pocket… potentially trying to actively subvert British politics.
“And we know he has an agenda,” Lewis adds.
Musk has almost been “at war” with Labour since they came into power, Jon says, noting that the level of interest he’s since taken in British politics is “extraordinary, some might say, unhealthy”.
“He has had a go at absolutely everyone and everything to do with the Labour government.
“He stood up for the farmers. I’m sure Elon Musk feels very, very close to the plight of small-holding farmers around Britain.”
Musk’s level of interest in US politics very quickly and very radically turned into real power and influence when he made a $100 million donation to Trump’s campaign and vocally backed him on X and at election rallies.
A few short months later, he was given a position as an advisor to the President-elect, leading his department of government efficiency.
“He paid $100 million to Donald Trump and what access, by God, he has got in return,” says Jon.
“Now, he wants to do the same in Britain”.
Listen in full on The News Agents
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