Would-be Bexhill MP is now treasurer for UKIP

In 2001 Mr Wheeler, a spread-betting tycoon who lives at Chilham Castle in Kent, gave the Tories £5 million but was expelled from the party eight years later after donating £100,000 to UKIP. He is said to have since given UKIP a further £253,000.

His appointment as UKIP treasurer was announced at a party press conference in the Lancashire constituency of Oldham East and Saddleworth, where a by-election took place yesterday (Thursday).

Mr Wheeler came fourth in the Bexhill and Battle poll last May, which saw Greg Barker retain his seat and become minister for energy and climate change in David Cameron and Nick Clegg’s Conservative/Liberal Democrat coalition government.

During his election campaign, Mr Wheeler highlighted the scandal in which it was revealed that some MPs had profited from dubious expenses claims and called for Parliament to be cleaned up.

Mr Wheeler said this week that he was “honoured” to have been chosen as UKIP’s treasurer and pledged: “I shall do my very best in both helping to raise money for the party and in the management of its financial affairs.”

UKIP is led by Nigel Farage and seeks to end Britain’s membership of the European Union - a cause fully supported by Eurosceptic Mr Wheeler.