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Foreign Secretary Yvette Cooper said the by-election "shouldn't be happening" while Conservative leader Kemi Badenoch said her party would not participate in "the fake election, which Nigel Farage is causing to distract people from what is happening".
The Lib Dems have called on the government to block Farage's resignation until the standards investigation had concluded.
Speaking about other parties refusing to stand against the Reform UK leader, Offord said Farage was the victim of an "establishment stitch up".
He told BBC Radio Scotland Breakfast: "He is anti-establishment, he's anti the incumbent parties, and he's been a thorn in their side for 25 years.
"This is an opportunity for them to knock him out the ring, and they're feart (sic)."
Offord said he did not know the full circumstances of the financial support gifted to Farage but insisted that the Reform UK leader had done nothing wrong.
He said the £5m gift had been given on an unconditional basis when Farage was not "even thinking of standing to be an MP" but that he later changed his mind.
Asked about Cottrell's support, Offord described Farage as an "international figure" who meets "interesting people along the way".
He said Cottrell was a "personal friend" of the Reform leader.
He added: "Right now, there's a narrative that if anyone's made any money, they're a bad person, and this is really bad for Britain."
