Last week it was revealed that Migration Matters trust, a UK-based, cross-party pressure group was actively campaigning against Nigel Farage’s UK Independence Party.

The group, led by Conservative Nadhim Zahawi, Labour’s Barbara Roache, and the Liberal Democrats’ Lord Dholakia last week issued a statement claiming that “Ukip’s campaign needs to be exposed for what it is, a racist campaign. The party is practising what is in effect a form of ‘Euracism’. They are deploying the same language and tactics used by openly racist parties like the BNP, but instead of targeting migrants from Africa and Asia they are targeting migrants from within the EU.”

Breitbart London can now report that the organisation received start-up funding from the City of London corporation, and have been consulting with Tony Halmos, who currently sits on the group’s advisory board. The City of London has clarified that they were “not aware” of the group’s “move into more direct political activity”.

An e-mail seen by Breitbart London has sought to put distance between the City of London and Migration Matters trust, which was co-founded by the anti-UKIP Telegraph journalist Dan Hodges, who still receives financial payments for his work with the group, and who has previously represented the anti-UKIP pressure group ‘Hope not Hate’.

Following the revelation of the City of London funding, an e-mail was circulated to City of London representatives claiming:

“We providing [sic] some modest initial startup funding for Migration Matters in the hope that it would help to provide a more balance [sic] debate on migration issues. We are not currently proving [sic] any funding. “We were not aware of their move into more direct political activity. Tony is removing himself from its Advisory Board”

The City of London traditionally keeps away from British party politics, while Migration Matters Trust has moved further into the political field over the past year.

In March 2013 the group claimed that lower migration into Britain would cost the country £18bn over five years, despite the figures not considering the impact on UK infrastructure including roads, schools, trains, and more.

A senior UKIP source told Breitbart London, “That the City of London corporation is funding the risible Barbara Roche and friends in their intemperate attacks on UKIP shows that the establishment is closing ranks against us.

“Of course it also gives a lie to the idea, popular in union and Labour quarters that UKIP is a tool of bankers. I suspect that this is just the tip of an iceberg of taxpayer’s money being used to covertly fund anti-UKIP groups.”