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The Tory party has always consisted of a spectrum of views, from borderline NF/BNP on the extreme Right through to (the descendents of) Thatchers 'Wets', and on to the patrician One Nation Tories.
As the members of local Conservative constituency parties have aged, their political views have drifted to the Right, whilst the Parliamentary party has, on their view, forsaken them with socially progressive policies like gay marriage.
In days gone by the number of Tories who would cross the line into outright support for the NF/BNP was limited, it was electoral suicide.
Now with the rise of social media, they can be reassured that their views have some support, but only in their own echo chamber, possibly amplified by targeted social media advertising from groups will not reveal their sources of funding.Rather like a snake sloughing off old skin,
Farage, and the other founders of the original ukip could see that UK fascists could get 12-14% of the vote in certain constituencies. Use that as a base, and (correctly) assume the major parties will be at best lukewarm about Euro Elections, and you can add on all sorts of malcontents to 'win' the 2014 Euro Elections.Farage, or more likely his financial backer, could see where ukip support was coming from, and could see the problem with being the cheerleaders for a newly invigorated extreme right wing.
So, ditch the continuity ukip, and start a new party, seemingly closer to the centre of the Overton window, offering a safe home to the socially conservative who do not want to be associated with fascists.
The Derbyshire councillors can legitimately claim that they have been cast adrift by the (more socially liberal) Parliamentary Tory party. Continuity ukip is beyond the pale; thus they see themselves as represented by the new Brexit party, even though it has no policies beyond (a bellowed) 'Brexit'.
So those people want genuine input / say in the political party, and what the party stands for is less important?