The Reform UK leader Nigel Farage has settled his debanking dispute with NatWest Group, nearly two years after the closure of his accounts sparked a chain of events culminating in the resignation of the lender’s chief executive.
Sky News can reveal that Mr Farage and NatWest have agreed to resolve their row, with the bank thought to have agreed to pay him an unspecified sum in damages.
In return, Mr Farage is understood to have withdrawn the threat of potential civil and criminal proceedings against NatWest over the issue.
Nick Candy, the Reform treasurer, is said to have played a key role in resolving the dispute between the two sides during mediation talks held at a London law firm on Tuesday.
Precise details of the settlement were unclear on Wednesday evening.
Responding to an enquiry from Sky News, Mr Farage and NatWest said in a joint statement: “NatWest Group and Nigel Farage MP are pleased to confirm that they have resolved and settled their dispute, and the bank has apologised to Mr Farage.
More on Nigel Farage
Related Topics:
“The terms of settlement are confidential.”
Mr Farage was originally expected to seek millions of pounds from the company, alleging that the debanking row had damaged his reputation.
The furore which claimed the scalp of Dame Alison Rose, NatWest’s former chief executive, in the summer of 2023 centred on whether the bank’s Coutts subsidiary had decided to close Mr Farage’s accounts for commercial or political reasons.
NatWest initially claimed the motivation was commercial, before Mr Farage obtained internal evidence from the bank suggesting that his political views had been a pivotal factor in the decision.
A subsequent – and inaccurate – BBC News report further exacerbated the controversy after it emerged that the journalist who wrote the story had sat next to Dame Alison at a charity dinner when the row was at its height.
It sparked a firestorm under the then Conservative government, with Rishi Sunak and Jeremy Hunt, the prime minister and chancellor respectively, indicating to NatWest’s board that they had lost faith in Dame Alison’s ability to lead the bank.
An emergency late-night board meeting led to Sir Howard Davies, who at the time was NatWest’s chairman, concluding that Dame Alison would need to step down – despite her having publicly apologised to Mr Farage for the bank’s treatment of him.
Since then, both have been replaced, with the former Ocado and MasterCard chairman Rick Haythornthwaite replacing Sir Howard, and Paul Thwaite now in his second year as the company’s chief executive.
NatWest has since reported a surge in profitability and is now on the verge of returning to full private sector ownership.
Earlier this week, it disclosed that the government now owns less than 4% of its shares, with the sale of its remaining holding expected by the early summer.
Then known as Royal Bank of Scotland Group and run by Fred Goodwin, RBS was bailed out in 2008 with £45.5bn of taxpayers’ money.
Its journey back to full private ownership has been a meandering one, and taxpayers will ultimately have lost billions of pounds on the government’s rescue deal.
On Wednesday afternoon, shares in NatWest closed at 463.9p, giving the bank a market capitalisation of over £37bn.
The stock has risen by more than 75% during the last year.
The debanking row which claimed Dame Alison’s job prompted the City watchdog to order a change to the treatment by financial institutions of so-called politically exposed persons (PEPs).
Since his initial promise to turn the issue into a mainstream battle against the major UK banks, Mr Farage’s status as one of Britain’s most influential politicians has been cemented.
He led Reform to a handful of seats at last year’s general election, while his party finished in second place in scores of other constituencies.
An opinion poll for Sky News by YouGov earlier this year put Reform ahead of both Labour and the Tories for the first time.
The government has been accused of “spin and tinkering” over an announcement about an increase in defence spending which falls far short of what is needed, Sky News understands.
An entire fleet of military helicopters – the Royal Air Force’s Puma aircraft – was retired this week as part of a cost-saving plan to scrap older kit that was announced in November.
The sight of old but still airworthy helicopters being taken out of service before a replacement is ready – creating a capability gap – contrasts with statements by Rachel Reeves, the chancellor, and John Healey, the defence secretary, about boosting the defence budget.
Image: The Puma aircraft’s last flight. Pic: UK MOD
Sir Ben Wallace, the longest-serving Conservative defence secretary, said he had expected better given the urgent need to rearm at a time of heightened threats and following Donald Trump’s warnings to Europe to stop relying on the United States to bankroll its security.
“We are at the dawn of a new era of insecurity across the world,” Sir Ben said.
“The US has warned us for a decade about not taking them for granted, and we all did nothing. In Germany, Poland, and France the penny has dropped and they have embraced a necessary culture change and re-prioritisation of government spend.
“In the UK, the government still thinks it is about spin and tinkering. It fools no one, and we risk losing our credibility and leadership on defence amongst allies.”
Image: Sir Ben Wallace. Pic: Reuters
In her spring statement on Wednesday, the chancellor announced an extra £2.2bn for defence this coming financial year.
Ms Reeves told MPs it was a further “down payment” on a promise by the prime minister to lift expenditure on defence to 2.5% of GDP from April 2027. Defence spending is currently around 2.3% of gross national income. The new money will help inch it up to 2.36%.
The chancellor, defence secretary and prime minister have repeatedly phrased their plan to inject cash into the armed forces over this parliament as “the biggest sustained increase in defence spending since the end of the Cold War”.
But defence insiders say, while any new money is welcome, this claim is more spin than substance because the defence budget largely suffered repeated cuts since the Soviet Union collapsed.
Image: Chancellor Rachel Reeves announced an additional £2.2bn in defence spending in her spring statement. Pic: PA
Also, focusing on a slogan does not answer the question of whether an extra £2bn over the next 12 months is enough to transform the British Army, Royal Navy and Royal Air Force at the speed that is necessary, they said.
Asked whether it was sufficient, multiple military sources and a defence industry source collectively said “no”.
“This is just another sticking plaster that overlooks decades of underinvestment and chronic financial mismanagement of our armed forces,” the defence industry source said.
“Increasing spending or a focus on ‘novel technologies’ ignores the fact that we have let a broken system flourish.
“Time and time again, we see celebration over procuring outdated solutions while their manufacturers get away with significant delays or overspends with seemingly few repercussions.
“While we continue to spin and fight over tiny percentages of spending, we are allowing our armed forces to get hollowed out in front of us, hoping that government soundbites will provide the deterrence that our current equipment can’t.”
Image: Defence Secretary John Healey on a nuclear submarine on 17 March. Pic: Crown copyright 2025
A military source said the additional £2.2bn for the year to March 2026 was a step in the right direction, but said it would merely keep defence on “life support”.
The situation only starts to improve marginally in two years’ time when the defence budget is finally forecast to hit 2.5% of GDP, the source said.
This is despite the UK being a leading member of the “coalition of the willing”, with Sir Keir Starmer pledging to deploy forces to secure any ceasefire deal in Ukraine – a move that would put huge additional strain on his already stretched armed forces.
Image: PM Sir Keir Starmer and Defence Secretary John Healey on a nuclear submarine. Pic: Crown Copyright 2025
While the UK talks about 2.5% for the defence budget, Mark Rutte, the secretary general of NATO, says allies must spend more than 3%, while Mr Trump wants them to aim for 5%.
In 2020, Boris Johnson, as the prime minister, said a plan to increase the defence budget by £16bn over four years, on top of a commitment to lift defence spending by 0.5% above inflation for each year of the parliament – so what was described at the time as an additional £24bn in total – was the biggest boost to defence expenditure since the Cold War.
Sir Keir has added the word “sustained” when describing the size of his defence spending boost – though that will depend upon the accuracy of forecasts that GDP will expand at the rate predicted in the coming years.
Sir Ben said: “The UK is facing some of the highest threats in a generation, yet John Healey thinks spin is the appropriate response. He fools no one – not the men and women of the armed forces and not our enemies. I had expected better of him.”
UK stargazers were treated to a partial solar eclipse on Saturday morning, a phenomenon that sees the sun partially obscured by the moon.
Up to 40% of the sun was covered as the moon passed between the sun and Earth, partly obscuring the star.
Members of the public gathered to watch the spectacle in Greenwich while thousands more followed online.
Image: Science correspondent Thomas Moore wearing solar eclipse viewing glasses in Greenwich
Image: Saturday’s partial solar eclipse at around 10.30am. Pic: Royal Observatory Greenwich
“It’s a different way of experiencing the mechanics of the solar system for yourself,” said Catherine Muller, an astronomer at Royal Observatory to Sky News science correspondent Thomas Moore.
“We know about it theoretically, we know that the moon orbits the Earth and they might pass by us but really getting to see it in a new and different way is quite exciting for a lot of people.”
Image: Hobby astronomers watch the partial eclipse in Germany. Pic: AP
Image: A solar telescope that projects a magnified image of the sun on to a piece of paper
Looking directly at the sun is dangerous so astronomers used glasses, solar telescopes and pinhole cameras to watch the event.
Image: The beginning of the partial eclipse above the roof of Berlin’s Olympic Stadium. Pic: Reuters
The eclipse was visible across several other parts of the world, including western Europe, Greenland, north-west Africa and north-east North America.
More on Eclipse
Related Topics:
For people in the southeast of England – where the weather meant the UK views were best – the peak of the eclipse was at around 11.03am.
At that point, around 30-40% of the sun was obscured, according to the Royal Observatory.
Eclipse chasers in awe as moon takes a nibble from the sun
Most of us are normally unaware of the mechanics of the solar system.
But when the silhouette of the moon slides across the disc of the sun during an eclipse you get to marvel at the precision movement of celestial objects.
At the Royal Observatory in Greenwich, home of the meridian, the partial eclipse started at 10.07, with the moon appearing to take nibble from the edge of the sun.
Crowds watched through eclipse glasses, awed by the best show from Earth.
Wispy cloud had drifted across the sun by the time the eclipse peaked an hour later. But not enough to spoil the view.
Stargazers could catch a glimpse of a partial solar eclipse this morning, where the sun looks like it’s had a bite taken out of it.
It only occurs a handful of times a year, when the moon passes between the sun and Earth, and partly obscures the star.
Here’s what you need to know for the best chance of seeing it.
When is it?
It’s expected to be visible in the UK from 9.56am to 12.14pm today.
For people in the south of England – where the weather means views should be best – the peak of the eclipse is set to be at around 11.03am.
This is when the eclipse reaches its “maximum” – the moment when the greatest portion of the sun is hidden.
According to the Royal Observatory, the maximum this time will see around 30-40% of the sun obscured.
What is the weather meant to be like?
Some parts of the UK will see more of the eclipse than others. Northwest Scotland is expected to see the most coverage with 47.9% in Gallan Head.
Dover in southwest England is set to see the least coverage of the eclipse with only 28.1% of the sun blocked by the moon, while Manchester is expected to have 36.1% of coverage.
Met Office meteorologist Alex Burkill said: “The further northwest you are in the UK the more of an eclipse you are likely to have, whereas towards the southeast it’s a little bit less – but still 30%, and still a large chunk taken out of the sun.”
Met Office maps show clear skies across southeast England at the time that the eclipse starts, with partial cloud above Manchester and northwest England, and cloud above most of Scotland.
The areas expected to have some of the best eclipse coverage are also likely to see cloud and rain at the time.
How can I give myself the best chance of seeing it?
Even though part of the sun will be covered, its brightness will still be dangerous to the naked eye, so experts say it can cause serious and permanent damage if you look straight at it without appropriate protection.
Also: standard sunglasses do not count as protection.
If you want more than a quick glance, you can use a pinhole projector or solar eclipse viewing glasses.
You can make pinhole projectors at home, simply by making a hole in a piece of card, holding the card up to the sun and holding another piece of paper behind the card.
The shape of the sun will appear projected onto the paper, without harming you.
Solar eclipse viewing glasses can be purchased online.
For those who can’t see it in person, the Royal Observatory is streaming the partial eclipse live through one of its modern telescopes on its YouTube channel, with coverage starting from 10am.