Rumours are swirling that UKIP may be facing bankruptcy over outstanding legal fees, owing £175,000 in a libel case brought against the party by three Labour MPs.
But Scrapbook can reveal – after having gained access to the party’s credit rating report – that the party may be have even greater trouble settling the bill than previously thought…
UKIP have a credit rating of just 26 out of 100, deeming them ‘high risk’, and entitling them to borrow the princely sum of… £0.
Yes that’s right, UKIP’s finances are deemed so precarious by credit assessors that they can’t borrow a single penny.
And their low credit rating has limited their credit worthiness to zero since August 2016 – previously having a credit limit of over £50,000.
UKIP saw their credit rating slide from an impressive 99/100 in March 2014 to the depths of 4/100 in June last year – and it’s only improved very slightly since then.
What’s is it about the state of UKIP’s finances that gives them such a lousy credit rating?
On the most recent assessment by due diligence website DueDil, the party’s net assets stand at -£174,000; their liabilities outweighing their assets.
The biggest hit to the party’s coffers appears to have come from fighting the 2015 election, which saw UKIP’s net assets slide from over £350,000 to a low of -£540,000.
How UKIP will be able to pay the £175,000 legal bill whilst having negative net assets and without being able to borrow any money is yet to be seen…
UKIP also have a County Court Judgement (CCJ) from January 2017 worth £2,991, which according to the financial records they’ve not paid.
We contacted UKIP about who the creditor was in this CCJ but our call was forwarded to Gawain Towler – UKIP’s former head of press who supposedly quit UKIP in February – who told us:
“I have absolutely no idea what you’re talking about.”
Although he did say he’d “look into it”.
It’s all hardly a ringing endorsement for a party that uses a pound symbol for their logo…