Reform UK has secured a banking arrangement with Lloyds Banking Group in what leader Nigel Farage has called a “crucially important moment” for his party.

The announcement was made on Thursday as the party opened an account with one of Britain’s largest financial institutions.

Mr Farage said the development marked a turning point for the organisation.

“This is a crucially important moment for Reform UK”, he said.

“Opening a bank account with one of the largest banks in Britain shows just how far we have come as a party and we look forward to a fruitful and positive partnership with Lloyds.”

Reform UK described the arrangement as “a landmark moment for the professionalisation of our party”.

The party had previously relied on smaller specialist financial firms to manage its accounts.

These firms included boutique organisations that typically serve clients unable to access mainstream financial providers.

The party’s reliance on alternative institutions reflected its status as an outsider within the broader landscape of British politics.

A source with knowledge of the arrangement said the move marked a shift away from this approach.

The source requested anonymity when discussing internal matters.

The arrangement with Lloyds marks a transition from smaller providers to a major high street lender.

The shift is presented by the party as further evidence of its development from a fringe movement into a more established political force.

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The announcement also has relevance because of Mr Farage’s previous difficulties with British banks.

In 2023, Mr Farage said his personal account was closed by Coutts, a wealth management brand within NatWest Group.

He claimed at the time that the closure was connected to his political views.

The situation attracted extensive public and regulatory attention.

The controversy affected NatWest Group’s leadership and possibly contributed to the departure of chief executive Alison Rose.

Ms Rose left her position after it was disclosed that she had shared information about the matter with a journalist.

The episode placed senior banking executives under scrutiny and prompted discussions about how financial institutions manage accounts linked to high-profile or politically controversial individuals.

Following his exit from Coutts, Mr Farage transferred his personal banking to Lloyds.

Lloyds is now the institution that has agreed to provide the banking services for the Reform UK party.

Reform UK has reported notable fundraising momentum in recent months.

Electoral Commission figures compiled by Bloomberg show the party received more donations than any other British political party during the third quarter of the year.

The figures indicate that Reform UK outpaced longer-established parties in attracting financial support during that period.

The fundraising data demonstrates a significant achievement for a party that is still relatively new in Westminster politics.

Reform UK currently holds five seats in the 650-member House of Commons.

Despite its limited parliamentary presence, the party is polling ahead of its representation.

The contrast between opinion poll numbers and parliamentary seats shows the difference between public support and outcomes generated under the first-past-the-post electoral system.

The party’s financial position and polling performance suggest that its profile is continuing to grow.

Reform UK has said that its new banking arrangement is part of efforts to build infrastructure that can support this expansion.

Lloyd’s have been contacted for comment.