Major UKIP funder Arron Banks has threatened to stand against Douglas Carswell for the seat of Clacton.

The threat came as Mr Carswell, UKIP’s only MP, was set for a meeting with party chairman Paul Oakden this afternoon.

It also follows former leader Nigel Farage branding Mr Carswell a “Tory Party posh boy” who should be expelled from UKIP.

In leaked emails that emerged overnight, it is claimed Mr Carswell may have blocked a knighthood for Mr Farage, something the MP disputes.

But the Clacton MP, who tweeted a smiley face on the day Mr Farage resigned as UKIP leader following the EU Referendum, tweeted another smiley face with the words “knight night.”

Today, after Mr Farage called on Mr Carswell to go, party financier Arron Banks stepped into the row.

He said of Mr Carswell:”He represents himself and no one else. A terrible individual that's done his best to destroy UKIP.”

Mr Banks said earlier today that he would stand against Mr Carswell in Clacton.

When told the sitting MP Mr Carswell was “relaxed” about the matter, the businessman added: “Good , we will have a high street shop in Clacton , professional agent appointed soon and I will be rolling my sleeves up.”