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Britain
Brit Politics: Millionaire backer drops UKIP sponsorship; Tories confirm Euroscepticism
2004-10-05
Kilroy's become a liability to UKIP alright.
Michael Howard's hard-line policy on blocking an EU constitution and bringing powers back from Brussels paid its first dividend last night when the UK Independence Party lost its biggest financial backer. Paul Sykes, a multi-millionaire Yorkshire businessman, said he would no longer fund UKIP because it had set out to "kill" the Conservatives at the next election by fielding candidates who could unseat Eurosceptic Tory MPs. His decision will come as a considerable relief to Tory MPs in marginal constituencies. David Davis, the Eurosceptic shadow home secretary, suggested yesterday that UKIP could damage the Tories in the same way as the former Referendum Party, which was reckoned to have cost them 30 to 50 seats in 1997.

Mr Sykes contributed half of UKIP's £2 million fighting fund for this year's European elections, which helped the anti-Brussels party quadruple its tally of Euro-MPs and emerge as a significant force. Over the past decade Mr Sykes has spent nearly £6 million on campaigns by Eurosceptic politicians. UKIP had been relying heavily on his backing for its general election campaign next year. Mr Sykes said that UKIP had "blown it" by deciding at its conference at the weekend to stand against the Tories in every constituency, rejecting calls not to challenge Tory MPs regarded as Eurosceptic.

Although Mr Sykes had wanted Mr Kilroy-Silk to become UKIP's leader, they have fallen out over the new aggressive strategy. Mr Sykes said that UKIP could not win a general election and by standing in every constituency it would damage the Tories, the only Eurosceptic party capable of forming a government. Leading Tories, including John Redwood, who returned to the shadow cabinet last month, have been in secret talks with Mr Sykes for weeks. Mr Sykes, who made his fortune by exporting second-hand buses and lorries, said he welcomed Mr Howard's tougher line on Europe.
Posted by:Bulldog

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