Inquiry remains open while trust is given an opportunity to resolve breach of charity legislation
A charity run by the leader of Reform UK in Scotland is breaking the law and must register with regulators, an inquiry has found.
TFN revealed earlier this week that an investigation had been opened by the Office of the Scottish Charity Regulator (OSCR) into the Badenoch Trust.
The Badenoch Trust was started as a grant-making charity in 2007 by Lord Malcolm Offord, now an MSP and leader of Reform UK in Scotland.
Lord Offord is one of the charity’s two trustees, as well as being listed as both the director and secretary of the organisation, which his register of interests states he has shares in.
During the election campaign he had pledged to give his MSP salary to the charity. It is unclear whether this is happening.
A concern was submitted about the charity to OSCR in the days before Lord Offord’s election to Holyrood, specifically regarding the charity’s lack of registration in Scotland.
TFN now understands the initial stages of the inquiry have led to OSCR instructing the trust to register north of the border, as required by charity law.
The Charities and Trustee Investment (Scotland) Act 2005 (the 2005 Act) states that all organisations which represent themselves as charities in Scotland must register with OSCR.
The Badenoch Trust does not meet these requirements, despite being found by OSCR to be “managed and controlled mainly in Scotland and carries out ongoing administrative activities from premises in Scotland”.
The inquiry remains open while the trust is given an opportunity to resolve the current breaches of the law.
TFN understands that the trust is now expected to register with OSCR to resolve these issues.
An OSCR spokesperson told TFN: “Based on the information the Badenoch Trust has provided to OSCR, it appears that the charity is managed and controlled mainly in Scotland and carries out ongoing administrative activities from premises in Scotland.
“As such, the charity meets the criteria for registration with the Office of the Scottish Charity Regulator (OSCR).
“In these circumstances, we have advised the charity to apply to register with OSCR at the earliest opportunity. Further guidance on cross-border charity regulation, including how to apply, can be found on the OSCR website.”
The Badenoch Trust is currently registered with the Charity Commission in England and Wales, where it states its only area of operation is Scotland.
The charity’s 2024 accounts evidence the organisation is administered from 10 Charlotte Square, Edinburgh – the address of Lord Offord’s own firm, Badenoch & Co.
These accounts also show a significant number of grants given to Scottish charities, including the Scottish Book Trust, the Edinburgh International Festival Art of Listening, and the University of Glasgow.
TFN’s revelations this week prompted a political response.
A Scottish Green Party spokesperson said: “These are serious findings and Lord Offord must answer for them. Charity law exists for a reason, and the public has a right to expect those in positions of power to respect it, not ignore it.
“As a party leader and parliamentarian, Lord Offord must be completely transparent about the Badenoch Trust, his role in its unlawful operations, and what this means for his pledge to donate his MSP salary.
“He should set out exactly what happened, how it will be corrected, and whether any money connected to his parliamentary salary was ever intended to go to a trust that was not properly registered in Scotland.”
Meanwhile, Scottish Labour deputy leader Jackie Baillie said “These serious reports demand urgent answers from Lord Offord.
“We need to know how and why this law-breaking occurred, what Lord Offord knew and when, and whether he is still planning to hand his MSP salary to his scandal-hit charity.
“Whether this is incompetence or something worse, it is yet more proof that Malcolm Offord can’t be trusted.
“Lord Offord and Reform can’t even get their own house in order – they have no chance of delivering for Scotland.”
Reform UK, Lord Offord, and the Badenoch Trust did not respond to requests for comment.
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