Rich and powerful feeding far right

The extremist group, which has been cited by Norwegian mass murderer Anders Behring Breivik as an inspiration and has links with anti-Islamic groups abroad, pretends to be a grass-roots community organisation - but it has been funded by millionaire Ann Marchini and former investment fund director Alan Ayling.

The aim of the pair was to influence and help shape the organisation to make it appear more credible in the political arena.

Ms Marchini operates a buy-to-let empire in Highgate, London, and is believed to operate under a pseudonym - although her lawyers deny this.

She is a member of the far-right British Freedom Party and friend of chairman Paul Weston.

The EDL is looking to stand in elections in the near future and Ms Marchini is believed to have been trying to foster closer links between the two organisations.

Mr Ayling, who has been operating under the name Alan Lake, used to be director of Pacific Capital investment and is an IT expert.

He was questioned last year by Scotland Yard detectives into possible links he had to Breivik.

Mr Ayling denied any such links and said he believed the brutal massacre to be "wrong."

He said on Norwegian immigration policy: "You let dangerous people who will not share your values, who will destroy your society and take your freedom. You will have to pay the price for that."

Former UK Independence Party candidate Mr Weston tried to distance himself from the situation, describing Mr Breivik as "a psychopathic lunatic."

Speaking to the Morning Star about the story which first appeared in the Sunday Times, Hope Not Hate spokesman Matthew Collins pointed out that the EDL has established links with the anti-Islamic "global crusader movement."

"Alan Lake has become less important, in terms of a global crusader movement," said Mr Collins.

"The EDL has now jumped into bed with Paul Weston - quite a wealthy man."

Mr Collins said he was not worried about the EDL standing in elections as it would "poll very badly" and had less than 1,000 members - well down on the group's own official estimates.

But he said fascists and the far right in Britain had changed their focus in recent years.

"It's not about nazis and hating Jews," he said.

"It is about extremist Christian identity political types who see themselves as crusaders against Islam.

"With this unpleasant English nationalism - the EDL, English Democrats and the British Freedom Party - chuck in this evangelical hatred of Islam and it makes it difficult for traditional anti-fascists to deal with."