Jane Collins, a Ukip MEP, was successfully sued by three Labour MPs she accused of ignoring child sex abuse

Ukip is facing demands that it pay the £670,000 costs of a defamation case against one of its MEPs, which could push the party into bankruptcy.

Money is tight for the anti-EU party, according to insiders, after a tumultuous 18 months during which it has had four leaders and been deserted by many donors and hordes of members.

Next week the party is due in court, where it will challenge demands that it pay the costs for a slander and libel case brought against one of its senior politicians.

Jane Collins, 55, Ukip MEP for the Yorkshire & Humber region, was successfully sued by three Labour MPs whom she had accused in 2014 of ignoring child sex abuse.

She alleged in a speech at a