Difference between revisions of "Arron Banks"

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[[Better for the Country]] Ltd is company founded in 2015 of which Banks is a director that made donations totalling £2.3 million to five separate registered campaigners during the referendum campaign. Its board includes, as well as Banks: [[Andy Wigmore]], [[Elizabeth Bilney]], [[Alison Marshall]]. All four directors were also trustees of Banks’ charity, the [[Love Saves the Day Foundation]] (since wound up in the midst of an investigation by the Charity Commission).<ref>[https://theferret.scot/arron-banks-winds-charity-regulator-investigates/ Arron Banks winds up charity as regulator investigates], The Ferret, 30 Oct 2017</ref>.
 
[[Better for the Country]] Ltd is company founded in 2015 of which Banks is a director that made donations totalling £2.3 million to five separate registered campaigners during the referendum campaign. Its board includes, as well as Banks: [[Andy Wigmore]], [[Elizabeth Bilney]], [[Alison Marshall]]. All four directors were also trustees of Banks’ charity, the [[Love Saves the Day Foundation]] (since wound up in the midst of an investigation by the Charity Commission).<ref>[https://theferret.scot/arron-banks-winds-charity-regulator-investigates/ Arron Banks winds up charity as regulator investigates], The Ferret, 30 Oct 2017</ref>.
  
[[Better for the Country]] Ltd made these donation to the following pro-Brexit campaign groups (recorded by the Electoral Commission):
+
[[Better for the Country]] made donations to:
<table cellspacing="0" cellpadding="3" border="1" float="left" align="left" width="100%">
 
<tr>
 
<th bgcolor="DodgerBlue1" width="20%">Date</th>
 
<th bgcolor="DodgerBlue1" width="20%">Name of donor</th>
 
<th bgcolor="DodgerBlue1" width="20%">Amount</th>
 
<th bgcolor="DodgerBlue1" width="20%">Donated to</th>
 
<th bgcolor="DodgerBlue1" width="20%">Subsidiary (parties only)</th>
 
</tr>
 
 
 
<tr>
 
<td align="center">March 16</td>
 
<td align="center">Better for the Country Ltd</td>
 
<td align="center">£1.9m</td>
 
<td align="center">[[Grassroots Out]]</td>
 
<td align="center">n/a</td>
 
</tr>
 
 
 
<tr>
 
<td align="center">Jun 16-Feb 17</td>
 
<td align="center">Better for the Country Ltd</td>
 
<td align="center">£110,000</td>
 
<td align="center">[[UKIP]]</td>
 
<td align="center">n/a</td>
 
</tr>
 
 
 
<tr>
 
<td align="center">Jun 2016</td>
 
<td align="center">Better for the Country Ltd</td>
 
<td align="center">£50,000</td>
 
<td align="center">[[Veterans for Britain]]</td>
 
<td align="center">n/a</td>
 
</tr>
 
 
 
<tr>
 
<td align="center">Mar-May 2016</td>
 
<td align="center">Better for the Country Ltd</td>
 
<td align="center">£54,000</td>
 
<td align="center">[[Trade Unionists Against The European Union]]</td>
 
<td align="center">n/a</td>
 
</tr>
 
 
 
<tr>
 
<td align="center">Mar 2016</td>
 
<td align="center">Better for the Country Ltd</td>
 
<td align="center">£50,000</td>
 
<td align="center">[[WAGTV]]</td>
 
<td align="center">n/a</td>
 
</tr>
 
 
 
</table> Electoral Commission, [https://pefonline.electoralcommission.org.uk/Search/CommonReturnsSearch.aspx?type=basicDonationSearch Donation Search], accessed Nov 2017</ref>
 
 
 
 
*[[Grassroots Out]] is an umbrella campaign group of which [[Leave.EU]] was part. The £1.9m donated by [[Better for the Country]] Ltd was as ‘non-cash’. As openDemocracy notes, ‘non-cash’ is a designation usually reserved for the provision of office space or in-kind services to political parties. In a letter to openDemocracy, however, Banks’ lawyers say Better for the Country bought “merchandise, leaflets, billboards, pens, badges and other paraphernalia,” before donating all of this to Grassroots Out.
 
*[[Grassroots Out]] is an umbrella campaign group of which [[Leave.EU]] was part. The £1.9m donated by [[Better for the Country]] Ltd was as ‘non-cash’. As openDemocracy notes, ‘non-cash’ is a designation usually reserved for the provision of office space or in-kind services to political parties. In a letter to openDemocracy, however, Banks’ lawyers say Better for the Country bought “merchandise, leaflets, billboards, pens, badges and other paraphernalia,” before donating all of this to Grassroots Out.
 
+
*[[UKIP]]
*The managing director of [[WAGTV]] is [[Martin Durkin]], a climate change sceptic and producer of “Brexit: The Movie”, ‘a controversial online documentary produced to support the campaign.<ref>Alastair Sloan and Iain Campbell, [https://www.opendemocracy.net/uk/brexitinc/adam-ramsay/how-did-arron-banks-afford-brexit How did Arron Banks afford Brexit?], openDemocracy, 19 Oct 2017</ref>
+
*[[Veterans for Britain]]
 +
*[[Trade Unionists Against The European Union]]
 +
*[[WAGTV]]; its managing director is [[Martin Durkin]], a climate change sceptic and producer of “Brexit: The Movie”, ‘a controversial online documentary produced to support the campaign.<ref>Alastair Sloan and Iain Campbell, [https://www.opendemocracy.net/uk/brexitinc/adam-ramsay/how-did-arron-banks-afford-brexit How did Arron Banks afford Brexit?], openDemocracy, 19 Oct 2017</ref>
  
 
Banks also gave three loans totalling £6 million on non-commercial terms to the [[Leave.EU]] group, which he chaired.
 
Banks also gave three loans totalling £6 million on non-commercial terms to the [[Leave.EU]] group, which he chaired.
  
[[Better for the Country]] Ltd made donations to the following pro-Brexit campaign groups (recorded by the Electoral Commission):
+
====Investigation into donations====
<table cellspacing="0" cellpadding="3" border="1" float="left" align="left" width="100%">
 
<tr>
 
<th bgcolor="DodgerBlue1" width="20%">Date</th>
 
<th bgcolor="DodgerBlue1" width="20%">Name of donor</th>
 
<th bgcolor="DodgerBlue1" width="20%">Amount</th>
 
<th bgcolor="DodgerBlue1" width="20%">Donated to</th>
 
<th bgcolor="DodgerBlue1" width="20%">Subsidiary (parties only)</th>
 
</tr>
 
 
 
<tr>
 
<td align="center">April 16</td>
 
<td align="center">Arron Fraser Banks</td>
 
<td align="center">£1m loan</td>
 
<td align="center">[[Leave.EU]]</td>
 
<td align="center">n/a</td>
 
</tr>
 
 
 
<tr>
 
<td align="center">March 16</td>
 
<td align="center">Arron Fraser Banks</td>
 
<td align="center">£3m loan</td>
 
<td align="center">[[Leave.EU]]</td>
 
<td align="center">n/a</td>
 
</tr>
 
 
 
<tr>
 
<td align="center">March 16</td>
 
<td align="center">Arron Fraser Banks</td>
 
<td align="center">£2m loan</td>
 
<td align="center">[[Leave.EU]]</td>
 
<td align="center">n/a</td>
 
</tr>
 
 
 
</table><ref> Electoral Commission, [https://pefonline.electoralcommission.org.uk/Search/CommonReturnsSearch.aspx?type=basicDonationSearch Donation Search], accessed Nov 2017</ref>
 
 
 
====Investigation into donations===
 
 
In 2017 the Electoral Commission announced it was investigating claims that Banks breached campaign finance rules during the EU referendum. As the ‘‘Times’’ reported in Nov 2017:  
 
In 2017 the Electoral Commission announced it was investigating claims that Banks breached campaign finance rules during the EU referendum. As the ‘‘Times’’ reported in Nov 2017:  
 
:’Better for the Country Limited, a company of which Mr Banks was a director, is at the centre of the investigation. [The Electoral Commission] will examine whether the company... was the true source of donations made in its name or whether it acted as an agent, or whether recipients of the money took the requisite legal steps to verify the identity of the firm.’
 
:’Better for the Country Limited, a company of which Mr Banks was a director, is at the centre of the investigation. [The Electoral Commission] will examine whether the company... was the true source of donations made in its name or whether it acted as an agent, or whether recipients of the money took the requisite legal steps to verify the identity of the firm.’
Line 129: Line 44:
  
 
====UKIP donations====
 
====UKIP donations====
Recorded by the Electoral Commission:<ref> Electoral Commission, [https://pefonline.electoralcommission.org.uk/Search/CommonReturnsSearch.aspx?type=basicDonationSearch Donation Search], accessed Nov 2017</ref>
 
 
<table cellspacing="0" cellpadding="3" border="1" float="left" align="left" width="100%">
 
<tr>
 
<th bgcolor="goldenrod" width="20%">Date</th>
 
<th bgcolor="goldenrod" width="20%">Name of donor</th>
 
<th bgcolor="goldenrod" width="20%">Amount</th>
 
<th bgcolor="goldenrod" width="20%">Donated to</th>
 
<th bgcolor="goldenrod" width="20%">Subsidiary (parties only)</th>
 
</tr>
 
 
<tr>
 
<td align="center">April 17</td>
 
<td align="center">Arron F Banks</td>
 
<td align="center">£2,000</td>
 
<td align="center">[[UKIP]]</td>
 
<td align="center">Clacton</td>
 
</tr>
 
 
<tr>
 
<td align="center">June 16</td>
 
<td align="center">Arron F Banks</td>
 
<td align="center">£10,000</td>
 
<td align="center">[[UKIP]]</td>
 
<td align="center">South East</td>
 
</tr>
 
 
<tr>
 
<td align="center">April 16</td>
 
<td align="center">Arron F Banks</td>
 
<td align="center">£25,000</td>
 
<td align="center">[[UKIP]]</td>
 
<td align="center">South Wales East</td>
 
</tr>
 
 
<tr>
 
<td align="center">Mar 15-Aug 15</td>
 
<td align="center">Arron F Banks</td>
 
<td align="center">£17,000</td>
 
<td align="center">[[UKIP]]</td>
 
<td align="center">Central Party</td>
 
</tr>
 
 
<tr>
 
<td align="center">Mar 15-Aug 15</td>
 
<td align="center">Arron F Banks</td>
 
<td align="center">£17,000</td>
 
<td align="center">[[UKIP]]</td>
 
<td align="center">Central Party</td>
 
</tr>
 
 
<tr>
 
<td align="center">Dec 14-Feb 15</td>
 
<td align="center">Arron F Banks</td>
 
<td align="center">£25,000</td>
 
<td align="center">[[UKIP]]</td>
 
<td align="center">Young Independence</td>
 
</tr>
 
 
<tr>
 
<td align="center">Nov 2014</td>
 
<td align="center">Arron F Banks</td>
 
<td align="center">£100,000</td>
 
<td align="center">[[UKIP]]</td>
 
<td align="center">Central Party</td>
 
</tr>
 
 
</table>
 
<br>
 
  
 
===Conservative Party===
 
===Conservative Party===

Revision as of 22:23, 9 November 2017

Brexit badge.png Part of the Powerbase Brexit Portal.
Arron Banks at a press conference with the BBC announcing his donation to UKIP, 1 October 2014

Arron Banks is a multimillionaire Brexit donor and businessman.

He bankrolled the campaign for the UK to leave the European Union, spending a total of £9.6 million of his personal money.

Mr Brexit

Post-referendum

Bank’s post-referendum plans are reportedly to turn Leave.EU’s legions of supporters into an online “people’s movement”. According to the New Statesman, he intends to launch this latest quixotic venture early next year, and his goal is to ensure not only that Brexit – hard Brexit – is implemented in full, but to bring about deep reform of the system he so detests. “We can’t carry on with politics as normal,” he says. “It’s a disastrous state of affairs.”

Banks also announced he is looking to forge a new party made up of UKIP, Labour and Conservative MPs. Banks felt he could harness the momentum of Brexit support in a new party outfit. When asked if Nigel Farage would be leader, he replied he 'may have had enough.'

Leave campaign

He was the single biggest donor to the Brexit campaign.

Banks was the largest donor to the pro-Brexit group Leave.EU, one of the two groups that led the pro-Brexit campaign, which he chaired.

He also contributed to a number of other groups campaigning for the UK to leave the EU.

Leave campaign donations

Banks spent a total of £9.6 million of his personal fortune funding the organisations which arguably clinched Brexit: Leave.EU, to which Banked loaned £6 million; UKIP and Better for the Country Ltd.

Better for the Country Ltd is company founded in 2015 of which Banks is a director that made donations totalling £2.3 million to five separate registered campaigners during the referendum campaign. Its board includes, as well as Banks: Andy Wigmore, Elizabeth Bilney, Alison Marshall. All four directors were also trustees of Banks’ charity, the Love Saves the Day Foundation (since wound up in the midst of an investigation by the Charity Commission).[1].

Better for the Country made donations to:

  • Grassroots Out is an umbrella campaign group of which Leave.EU was part. The £1.9m donated by Better for the Country Ltd was as ‘non-cash’. As openDemocracy notes, ‘non-cash’ is a designation usually reserved for the provision of office space or in-kind services to political parties. In a letter to openDemocracy, however, Banks’ lawyers say Better for the Country bought “merchandise, leaflets, billboards, pens, badges and other paraphernalia,” before donating all of this to Grassroots Out.
  • UKIP
  • Veterans for Britain
  • Trade Unionists Against The European Union
  • WAGTV; its managing director is Martin Durkin, a climate change sceptic and producer of “Brexit: The Movie”, ‘a controversial online documentary produced to support the campaign.[2]

Banks also gave three loans totalling £6 million on non-commercial terms to the Leave.EU group, which he chaired.

Investigation into donations

In 2017 the Electoral Commission announced it was investigating claims that Banks breached campaign finance rules during the EU referendum. As the ‘‘Times’’ reported in Nov 2017:

’Better for the Country Limited, a company of which Mr Banks was a director, is at the centre of the investigation. [The Electoral Commission] will examine whether the company... was the true source of donations made in its name or whether it acted as an agent, or whether recipients of the money took the requisite legal steps to verify the identity of the firm.’

UKIP

Banks switched his allegiance from the Conservative Party to UKIP in 2014.

Banks said he switched to UKIP because he agrees with its policies and its view that 'Europe is holding the UK back' as it's a 'closed shop for bankrupt countries'.[3][4]

In 2014 it was alleged that Banks was funding a website called LibLabCon, dedicated to attacking the three major parties. The domain of the website was reportedly registered to Banks at the address of his firm, GoSkippy in Bristol. UKIP told the Daily Mail the website is not linked to them but is funded by one of their main backers.[5]

UKIP donations

Conservative Party

Until 2014 Banks was a member of the Conservative Party and a modest donor.

A spokesman for UKIP’s Nigel Farage said that Banks had funded the Chipping Sodbury office for the South Gloucestershire Conservatives 'to the tune of £250,000'. However, a Conservative spokesperson said the support was 'nothing like the order of magnitude' of sums claimed by UKIP and estimated that the donations were about £22,000.[4] A Ukip source said that he had also loaned £75,417 to Thornbury and Yate Conservative party via his former company Panacea Finance in September 2007, to be paid back by 2022. However, Companies House records show that Banks resigned from the company in September 2005, 'raising questions over whether he was controlling the firm at the time, or whether he was using the firm as a “proxy donor"'.[6]

Upon Bank's defection to UKIP, Conservative MP William Hague called him 'somebody we haven't heard of'. In response, Banks said he was going to up his donation from £100,000 to £1million, claiming he did not like being called Mr Nobody.[3]

Conservative Party donations

Recorded by the Electoral Commission:

Date Name of donor Amount Donated to Subsidiary (parties only)
May 2009 Arron F Banks £5,000 Conservative Party Thornbury and Yate
Jan 2007 Arron F Banks £20,000.00 Conservative Party Northavon

[7]


Business interests

Banks is a shareholder in at least 20 UK registered companies. Almost all of their parent companies are offshore in the Isle of Man, Gibraltar and the British Virgin Islands. His interests worldwide include insurance, banking, diamond mining and political consultancy.

In June 2017, the ‘’FT’’ conducted an investigation into Banks’ overlapping business interests. [8] They have included:

  • Brightside Group, a Bristol-based insurance broker co-founded by Banks. He floated the firm in 2011 and was shortly after sacked as chief executive. It was sold two years later to a private equity group, and became heavily lossmaking.[9]
  • Southern Rock Insurance; Gibraltar-based underwriter in which Banks is a major shareholder. He resigned as a director in 2014.
  • Eldon Insurance, Banks was a director until 2013. Eldon operates the motor insurance brand GoSkippy.
  • Rock Services, another company, of which Mr Banks is a director.

The ‘’FT’’ also notes that ‘over the years [Banks] has built stakes in an offshore bank, a provider of trustees to high net worth individuals, and — through Southern Rock Insurance — even uranium mining in Niger. More recently, he has taken shares in a sports consultancy.[10]

Financial worth

In 2015, Banks told the ‘’FT’’ that he was worth around £100m. In 2017, the ‘’Sunday Times’’ Rich List estimated his net worth at £250m.

Banks’ financial status, however, is somewhat unclear, says website openDemocracy. It conducted a lengthy investigation into Banks’ businesses and found that his claimed worth of £100 million ‘is hard to justify’. Banks, however, in response, claims his worth could be even higher than £100 million, saying that he would “broadly agree” with an analysis made by the ‘’Sunday Times’’ Rich Times list that his net worth could instead be some £250 million. [11]

openDemocracy concludes that the ‘value of his businesses are materially lower than Banks’ own inflated boasts and, while still a wealthy man, was he wealthy enough to give so much to the Brexit campaign, without some other undisclosed source of income?’ [12]

Tax avoidance

After his defection and donation to UKIP, Banks faced criticism for basing his business interests in tax havens, such as Gibraltar, and thereby avoiding UK tax laws. To counter these accusations, he released evidence that he paid £1.86million in British tax in 2013-2014.

One of the businesses in question was Rock Services Ltd, of which Banks is a director. It had a turnover of £19.7m in 2013 and paid corporation tax of £12,000. The company deducted £19.6m in 'administrative expenses.

When asked if his companies pay full corporation tax, he said: 'I paid over £2.5m of income tax last year [2013] so I’m not going to get knocked on that one, thank you very much. I really resented that, by the way. My insurance business, like a lot of them, is based in Gibraltar but I’ve got UK businesses as well that deal with customers and pay tax like everyone else.'

Charlie Elphicke, a Conservative MP and former tax lawyer, replied by saying: ‘Everyone knows that companies in tax havens like Gibraltar and Bermuda are often used to help minimise tax. This evidence raises serious questions about Mr Banks’s conduct and consistency of identity.'[6]

Early career

Banks had started out selling vacuum cleaner appliances door to door in Basingstoke in the late 1980s. “I was quite good at persuading people to buy things they didn’t want to buy,” he told the New Statesman in October 2016. [13]

Banks eventually moved into a junior position in the Lloyds' insurance market, where he gained his first exposure to the industry. Banks spent seven years at Lloyds', working his way into a junior underwriting position before he moved to Bristol, following a split from his first wife.

openDemocracy found a number of ‘cracks in Banks’ biography’ from this point on. Banks claimed he led his own sales team at Norwich Union – now part of Aviva, but Aviva say they have no record of Banks ever having worked for Norwich Union. Banks claimed to have worked for Warren Buffett, but checks made by Buffett’s office drew a blank.

Business associates

The Australian solicitor Jim Gannon and the accountant Paul Chase-Gardener are both described as long term business partners of Banks.[14]

Banks’ Russian connections

Banks’ second wife was a Portsmouth-based Russian called Ekaterina Paderina. According to the Sunday Times, Paderina’s former husband had been interviewed twice by Special Branch because they suspected her of working for the Russian government.[15]

Notes

  1. Arron Banks winds up charity as regulator investigates, The Ferret, 30 Oct 2017
  2. Alastair Sloan and Iain Campbell, How did Arron Banks afford Brexit?, openDemocracy, 19 Oct 2017
  3. 3.0 3.1 Bristol Post, Bristol businessman ups UKIP donation to £1 million after Tory calls him a "nobody", 1 October 2014, accessed 17 February 2015
  4. 4.0 4.1 BBC News, Ex-Tory donor Arron Banks gives £1m to UKIP, 1 October 2014, accessed 17 February 2015
  5. Tamara Cohen £1m Ukip donor 'funding online attacks on rivals': Entrepreneur said to have registered website which attacks three main parties Daily Mail, 24 December 2014, accessed 17 February 2015
  6. 6.0 6.1 Rajeev Syal Ukip donor Arron Banks shows tax cheque sent to HMRC for £1.86m The Guardian, 4 October 2014, accessed 17 February 2015
  7. Electoral Commission, Donation Search, accessed Nov 2017
  8. How the businesses of Brexit campaigner ‘King’ Arron Banks overlap, FT, 30 June 2017
  9. How the businesses of Brexit campaigner ‘King’ Arron Banks overlap, FT, 30 June 2017
  10. How the businesses of Brexit campaigner ‘King’ Arron Banks overlap, FT, 30 June 2017
  11. Alastair Sloan and Iain Campbell, How did Arron Banks afford Brexit?, openDemocracy, 19 Oct 2017
  12. Alastair Sloan and Iain Campbell, How did Arron Banks afford Brexit?, openDemocracy, 19 Oct 2017
  13. Alastair Sloan and Iain Campbell, How did Arron Banks afford Brexit?, openDemocracy, 19 Oct 2017
  14. Alastair Sloan and Iain Campbell, How did Arron Banks afford Brexit?, openDemocracy, 19 Oct 2017
  15. From Urals to Ukip: racy tale of Arron Banks’s Russian wife, Sunday Times, 10 Sept 2017