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The Reform UK leader said the "people of Clacton should be the judges of my actions" and insisted he had done nothing wrong.
His decision comes while he is under investigation by Parliament's standards commissioner over a £5 million gift received before he entered Parliament. Opposition parties have also called for further scrutiny after reports that he failed to declare additional support allegedly provided by another political ally.
Farage seeks fresh mandate amid scrutiny
Farage accused the parliamentary standards process of being used as a political weapon and said he wanted to be judged by voters rather than the media. In a video statement released by Reform UK, he said the by-election would allow constituents to "stick two fingers up at the entire establishment".
Major parties refuse to contest vote
Labour, the Conservatives, the Liberal Democrats and Restore Britain have all said they will not field candidates in the by-election, effectively boycotting the contest.
A Labour spokesperson said the party would not "indulge" Farage by taking part in what it described as "this circus".
Conservative leader Kemi Badenoch dismissed the move as a "gimmick", arguing Farage was attempting to distract attention from the allegations surrounding his finances. She said the Conservatives would instead contest any "real by-election" that might result from the standards investigation.
Liberal Democrat leader Sir Ed Davey urged the government to delay Farage's resignation until the standards commissioner completed the investigation. He added that if the by-election proceeds, other parties should continue refusing to participate in what he described as Farage's "vanity project".
Restore Britain leader Rupert Lowe also ruled out standing a candidate, although he said his party would contest any future by-election triggered by the outcome of the standards investigation. The Green Party said the decision on whether to stand would be made by its local Clacton branch.
Investigations and financial support
Farage's resignation will suspend the standards commissioner's investigation into the £5 million gift until he returns to Parliament, should he win the by-election.
The inquiry began in May after questions were raised over his failure to declare the donation from Christopher Harborne, a Thailand-based British cryptocurrency investor and one of Reform UK's largest financial backers. Harborne has donated £15 million to the party since the beginning of last year.
Farage has said the £5 million was an unconditional gift intended to help fund his personal security.
His team has also argued that non-cash support reportedly provided by longtime associate George Cottrell, including funding staff for security and social media work and access to accommodation near Buckingham Palace, did not require registration.
The allegations emerged after a Sunday Times report examined Farage's links to Cottrell, who served eight months in a US prison after pleading guilty to wire fraud in 2017.
Farage said he had spent the weekend considering his future after media coverage involving his family and Cottrell.
Rules and next steps
Parliament requires newly elected MPs to declare gifts or benefits connected with their parliamentary or political activities that were received in the 12 months before their election, although purely personal gifts are exempt.
Farage insisted he had complied with the law.
If the standards investigation eventually concludes that Farage should be suspended, a recall petition could be triggered. If at least 10% of eligible voters sign the petition, another by-election would be held.
Farage won the Clacton seat at the 2024 general election with a majority of 8,405 over the Conservatives after seven previous unsuccessful attempts to enter Parliament.
His resignation will take effect only after he accepts a Crown appointment, the formal mechanism used to disqualify MPs from the House of Commons.
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Adapted by ASEAN Now. Source 8 July 2026
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