The leader of Ukip has denied the party spent EU money on polling surveys in the run up to and during the general election campaign in South Thanet.

A leaked audit report from the EU has suggested the party had misspent £400,000 from a fund provided to the MEP group ADDE, which is dominated by Ukip.

According to the report leaked to Sky news, money was allegedly used on polling "conducted in the interest of Ukip" that was "essential for reaching a significant representation in the House of Commons from the 2015 General Election or for a positive result for the 'Leave Campaign'".

Mr Farage, who was defeated in South Thanet, said the party had complied with all the rules on how the money granted to ADDE was spent.

"I've understood absolutely the rules. This is pure victimisation. I am the most investigated MEP in history. Look at what the pro-EU groups were spending."

Ukip set up the ADDE - Alliance for Direct Democracy in Europe - in 2014. It has 27 MEPs from seven countries, the largest group of which are Ukip MEPs.

If the claim is upheld, UUkip could be forced to repay in the region of £140,000.

It faces claims that it was not just South Thanet where money was used for party polling but in other key target seats for Ukip, including Thurrock, Rochester and Strood and Cardiff South and Penarth.

The Conservatives are also facing a separate probe into their election expenses in the battle for the South Thanet seat, with claims that it wrongly reported spending as national expenditure when it should have been reported as local expenditure.