In a 20-minute video statement, recorded at his party headquarters in London on Tuesday, Farage insisted he had “done nothing wrong” in regards to his finances and railed against the media, complaining about the treatment of his family.
He said the “establishment” were using “foul means” to target his party.
The by-election would, he said, be “a chance to stick two fingers up to the entire establishment to frankly tell them where to go”.
Reform sources have said they want the election to take place quickly and under parliamentary rules it could be scheduled as early as August.
Asked as he left his party’s offices if he was staging a stunt, Farage said: “Oh, it’s a big gamble.”
Farage has said that his party has offered to cover the cost of the by-election, which is normally paid for from central government funds.
A government estimate from 2016 put the cost of by-elections at £228,964 but that figure will have risen since then.
Conservative peer and polling expert Lord Hayward said the “whole principle” of British electoral law is “that you separate the administration of the election from the party contest”.
He told the Today programme: “Therefore it would be illegal for them to make a payment to cover the cost of the by-election.”
Farage won the Clacton constituency in the 2024 general election, securing a healthy majority of more than 8,000 and beating the Conservatives into second place. Labour finished third followed by the Liberal Democrats and the Green Party.
Farage has been under investigation from Parliament’s standards commissioner Daniel Greenberg since May after not declaring a £5m gift he received from billionaire Reform donor Christopher Harborne before he became an MP.
In his speech, Farage described the money as “the equivalent of a lottery win”.
He said he was “the most physically and verbally attacked public figure or politician of modern times” and that the “unconditional” gift would help cover his personal security costs.
Over the weekend, the Sunday Times published a story in which it said George Cottrell, a longstanding Farage ally, had provided support, before the 2024 general election, which included paying for staff who provided Farage’s security and working on his social media content.
Parliament’s rulebook says newly elected MPs have to declare gifts or benefits, including accommodation, received in the 12 months before their election that relate to their “parliamentary or political activities”.
There is an exemption for gift and benefits that are “purely personal”.
Farage has argued that the support he received would fall under this exemption.
The standards commissioner’s investigation has been paused following Farage’s resignation but it could be resumed if he wins the by-election and returns to Parliament.
One possible outcome of the investigation is a suspension, which triggers a recall petition.
This process enables an MP to be removed and a further by-election would be triggered if 10% of eligible registered voters sign a petition.
Separately, it has emerged that Cottrell and his mother both gave money to a company and a think tank owned by Reform’s deputy leader, Richard Tice.
As first reported by the Telegraph, Tice’s company Tisun Investment received a loan of £80,000 from Cottrell in late 2024 while his think tank Britain Means Business received a £1m donation from Fiona Cottrell in June 2024.
These payments were flagged to the National Crime Agency (NCA) as part of its Suspicious Activity Reports programme, something Tice says he only became aware of when he was contacted by the Guardian newspaper.
Reform UK believe the information is likely to have come from the NCA.
Tice has written to the boss of the NCA asking if he will investigate if the organisation is responsible for leaking his private financial information to the media.
A spokesperson said: “The NCA does not confirm or deny the receipt of suspicious activity reports (SARs), nor comment on how any SAR is used. SARs are confidential and breaching that confidentiality risks committing a tipping off offence under the Proceeds of Crime Act.”
The SAR programme alerts law enforcement to potential instances of money laundering and flagged 866,616 reports in 2024/25.