‘Dire’ funding situation leaves Tories struggling for party HQ rent Fears are also mounting that Theresa May’s refusal to stand aside is starving the party of much-needed funding

Funding for the Conservatives has dried up so badly that the party is struggling to pay the rent on its headquarters, i has been told.

Concern among activists and MPs deepened yesterday as Jeremy Hosking, a City financier and one of the party’s most prominent donors, defected to Nigel Farage’s new Brexit Party.

The failure to secure Brexit is one of the main reasons for the crash in donations, with backers unwilling to provide more cash until the issue is resolved.

The i politics newsletter cut through the noise Email address is invalid Email address is invalid Thank you for subscribing! Sorry, there was a problem with your subscription.

Fears are also mounting that Theresa May’s refusal to stand aside is starving the party of much-needed funding as donors are holding back to see who the Prime Minister’s replacement will be.

Donations drying up

Senior Tory sources told i the situation has become so “dire” that party headquarters was struggling to pay the rent at its £51m Westminster home.

“They are currently paying for things at a month by month basis,” the source said. “It is like the dark days of opposition when donors were waiting to see who would take over and reserves were drying up.”

It comes as City financier Jeremy Hosking, a major investor in the Flybe airline, has switched his support for the Conservatives by giving £200,000 to the Brexit Party after becoming disillusioned with the Tories’ failure to deliver Brexit.

Mr Hosking donated £350,000 to the Conservative candidates during the 2017 general election campaign. He also handed over £1.7m to the largely Conservative-backed Vote Leave campaign during the 2016 EU referendum.

Brexit defectors

i understands his decision is part of a growing trend with many of the party’s “big hitters” preferring to wait before handing over their cash.

Recent speculation suggested there was just £1.5m left in the bank for the Tories, leaving the party’s reserves dangerously low.

Another Tory source suggested that it was because of dwindling resources that the party has decided to fight a low-key European election campaign.

In March it emerged that Mick Davis, the Tories’ chief executive, had told supporters that the party was in urgent need of donations to stay afloat.

According to The Financial Times, Mr Hosking is believed to be one of several Tory donors who felt “utterly let down” by Mrs May’s leadership.

“Having supported the party through thick and thin – often out of gratitude for what Margaret Thatcher did for the UK economy – they feel not only betrayed but, even worse, fooled,” a friend of Mr Hosking told the paper.

Last night, the Conservative Party declined to comment.