'Who governs Britain?' - UKIP

Businessman Paul Sykes has pledged his support

The UK Independence Party is holding an election rally in Westminster with millionaire businessman Paul Sykes promising to bankroll its campaign to the tune of £100,000 a day.

Introduced at the rally in Westminster as UKIP's "new friend", Mr Sykes accused the other parties of being "gagged" on Europe.

We are no longer self governing and the euro would mean the end of British independence

Paul Sykes
Millionaire businessman

Astronomer Sir Patrick Moore was also at the rally to back the party, which wants Britain to pull out of the European Union.

But former Conservative MP Teresa Gorman denied speculation she was about to defect to it.

Who governs Britain

UKIP has also launched a new poster campaign asking "Who governs Britain: Westminster or Brussels."

Sir Patrick Moore: Seats are winnable

Mr Sykes, who resigned from the Conservative Party over Europe, told BBC News Online that not only was he contributing to UKIP's campaign but he had decided on Friday to join its ranks.

"I am proud to be with this party. All the other parties are gagged on Europe.

"We are no longer self-governing and the euro would mean the end of British independence."

The Yorkshire businessman, who began his career as a tyre-fitter, said it was difficult to say how much he was giving to the campaign but estimated the figure at £100,000 a day.

He was asked why UKIP was standing against Eurosceptic Tory candidates.

Mr Sykes insisted that the candidates in question could neutralise UKIP by saying "never" to the euro and by calling for a referendum on withdrawal from the EU.

Astronomer and broadcaster Sir Patrick explained his support to BBC News Online.

"I don't want to be sucked into Europe. We have stood on our own for 1000 years. Let's do it again," he said.

He argued that there were winnable seats for the party.

Gorman speculation

But there was no sign of Ms Gorman, despite earlier speculation that she may be switching her allegiances to the UKIP.

Party leader Jeffrey Titford said: "It was intended she was coming over - you will have to wait and see," he said.

Mrs Gorman retired after 14 years as Tory MP for Billericay.

Mr Sykes said he knew nothing about the rumour but added that given Lady Thatcher's speech on Europe it would might been more appropriate if she had attended the rally.

Nigel Farage: Europe top of the political agenda

Mrs Gorman issued a statement saying: "Mrs Gorman has retired from politics and she is not joining any other party."

The UKIP rally came as Tony Blair told Friday's Financial Times he thought he could win a euro referendum.

Tory leader William Hague and shadow chancellor Michael Portillo are also making speeches on the issue later on Friday.

The UKIP is fielding 430 candidates in this election.

One of the candidates Nigel Farage, who is also an UKIP MEP for South East England, said: "We want to put the European question to the top of the political agenda for this election campaign.

"We want to put our country before tribal politics."

In his rally speech he called for an "amicable divorce" from Europe, and a free trade agreement instead.

Meanwhile former Conservative Party chairman Lord Tebbit told BBC News that activists with past links to the British secret service worked for the UKIP.

And he called for an independent inquiry into the allegations.

But Mr Titford told BBC Radio 4's Today programme the claims were a "smear story" to try to discredit his party.