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Sir Keir Starmer locked in row with Jeremy Corbyn over £370k payout for anti-Semitism whistleblowers

Sir Keir Starmer and Jeremy Corbyn - AFP
Sir Keir Starmer and Jeremy Corbyn - AFP

Sir Keir Starmer was on Wednesday locked in a row with Jeremy Corbyn as Labour agreed to  pay “substantial damages” to anti-Semitism whistleblowers and Jewish campaigners called on him to suspend the whip from Mr Corbyn.

To the fury of the party’s hard-Left, Labour issued an unreserved apology to seven ex-staff members and the journalist John Ware over “defamatory and false” allegations levelled against them by the previous regime.

Agreeing to pay out an estimated £370,000 in fees and damages, the party said it recognised the “many years of dedicated and committed service” the whistleblowers had given and appreciated their “valuable contributions”.

Speaking in the House of Commons, Sir Keir sought to distance himself further from Mr Corbyn as he declared that Labour was now “under new management”.

Drawing a clear contrast with the former regime’s soft approach on Russia, he told MPs that he believed the news outlet Russia Today - which Mr Corbyn has appeared on several occasions - should have its UK licence reviewed.

It comes a year after Labour accused the ex-staffers who appeared in the Panorama documentary Is Labour Anti-Semitic? of having “personal and political axes to grind”.

The party also said that Mr Ware, who presented the programme, of “deliberate and malicious misrepresentations designed to mislead the public".

In a statement, Labour said that “we would like to apologise unreservedly for the distress, embarrassment and hurt caused by their publication.  We have agreed to pay them damages.”

Mr Corbyn wrote: 'Labour Party members have a right to accountability and transparency of decisions taken in their name' - Hollie Adams/PA
Mr Corbyn wrote: 'Labour Party members have a right to accountability and transparency of decisions taken in their name' - Hollie Adams/PA

But  just hours later, Mr Corbyn issued a public rebuke of Sir Keir’s decision to settle the legal action, which he denounced as a “political” rather than “legal” decision.

He added that decision was “disappointing” and risked giving “credibility to misleading and inaccurate allegations about action taken to tackle anti-Semitism in the Labour Party in recent years.”

His comments were echoed by Len McCluskey, the Unite general secretary, who branded the settlement a “misuse of Labour Party funds”.

Mr Corbyn’s lack of contrition has infuriated senior Labour figures and Jewish campaigners, with the charity the Campaign Against Anti-Semitism calling for him to be suspended from the party.

Labour says it has no plans to censure Mr Corbyn, with insiders suggesting that rumours were being spread in a bid to reignite internal divisions.

Meanwhile, the libel lawyer Mark Lewis confirmed he had been instructed by Mr Ware and a number of the whistleblowers to pursue action against Mr Corbyn over his latest remarks.

Mr Lewis also disclosed that he had been approached by 32 individuals who want to take action against Labour for a range of allegations.

A senior Labour source claimed Mr Corbyn appeared to be determined not to be “remotely supportive” of Sir Keir and accused him of attempting to deflect blame over his own failings.

They added that fighting the legal action launched by the whistleblowers and Mr Ware posed a “huge risk”, and that losing at trial would have cost the party between £1.5 and £2 million.

“It would be mad for any organisation to take the risk of going down literally millions for a thing like that,” they added.

Separately, Sir Keir’s spokesman pointed out that during the Labour leadership election Rebecca Long-Bailey, the pro-Corbyn candidate, had also stated that the party mishandled the case and that she would settle it if elected.

Labour Party under 'new management'

Labour has agreed to pay out an estimated £370,000 in fees and damages to anti-Semitism whilsteblowers as it apologised unreservedly for smears levelled at them under Jeremy Corbyn’s regime.

Twelve months after denouncing seven former staff members who featured in a damning BBC Panorama documentary as having “personal and political axes to grind”, Labour said that the comments were both “false and defamatory”.

Appearing in the High Court, legal counsel acting for the party said it had wrongly accused the whistleblowers of “bad faith” and that its response had caused “distress, embarrassment and hurt”.

Withdrawing the remarks and undertaking not to repeat them, it also apologised and agreed to a settlement with veteran BBC journalist John Ware over its claim that he had engaged in “deliberate and malicious misrepresentations designed to mislead the public”.

The Daily Telegraph understands that the legal costs payable to the litigants are estimated at £200,000 and the damages at £170,000, with the party’s own costs thought to exceed £100,000.

Labour declined to confirm or deny the figures when approached for comment.

Speaking afterwards outside the court, Lord Falconer, Labour’s shadow attorney general, said the settlements had brought to an end a torrid “chapter” for the party.

"We can focus now not on litigation, which is a disastrous thing for a party to be focusing on,” he added. “Instead, it should be focusing on championing the things that matter to the public, so it's a good day."

In a statement, Labour added that Sir Keir Starmer was “committed to tackling anti-Semitism,” which had become a “stain” on the party in recent years.

"If we are to restore the trust of the Jewish community, we must demonstrate a change of leadership,” it continued.

The clear departure from Mr Corbyn’s leadership was underlined further when, shortly after midday, Sir Keir declared in the House of Commons that Labour was now under “new party management.”

Ratcheting up pressure on Boris Johnson over the Government’s handling of the repeatedly delayed Russia report, Sir called for firm action against “Kremlin-backed disinformation” and for a review of the state-backed broadcaster Russia Today’s licensing agreement.

While Mr Corbyn and many of his allies have previously appeared on the show, Sir Keir told MPs that "no frontbencher from this party has appeared on Russia Today since I have been leader of this party."

While the settlement with the whistleblowers was welcomed by Jewish groups and Labour moderates, the decision to effectively rebuke the previous regime’s handling of the controversy has infuriated Mr Corbyn and the hard-Left.

In a clear challenge to his successor issued shortly after midday, Mr Corbyn claimed that the decision to settle the case rather than go to trial had been a “political” rather than legal decision.

He added that the decision to settle the claims was “disappointing” and risked giving “credibility to misleading and inaccurate allegations about action taken to tackle anti-Semitism in the Labour Party in recent years.”

Mr Corbyn also cited a recently leaked party sanctioned report on the party’s handling of anti-Semitism, now the subject of an internal requiry, which he said “strengthened concerns about the role played by some of those who took part in the programme.”

“Labour Party members have a right to accountability and transparency of decisions taken in their name, and an effective commitment from the party to combat antisemitism and racism in all their forms,” the statement continued.

“To give our members the answers and justice they deserve, the inquiry led by Martin Forde must now fully address the evidence the internal report uncovered of racism, sexism, factionalism and obstruction of Labour’s 2017 General Election campaign.

Echoing his comments, Len McCluskey, the Unite general secretary, wrote on Twitter: “Today’s settlement is a misuse of Labour Party funds to settle a case it was advised we would win in court.

“The leaked report on how anti-semitism was handled tells a very different story about what happened.”

Mr Corbyn’s statement immediately sparked a widespread backlash among Labour moderates and Jewish groups, with the Campaign Against Anti-Semitism calling on Sir Keir to suspend the whip from him.

While senior Labour sources indicated that no action would be taken, Mark Lewis, the libel lawyer representing both Mr Ware and the former staff members confirmed that he had now been instructed to pursue claims against Mr Corbyn.

Separately, allies of Sir Keir expressed their anger at the former Labour leader’s refusal to show contrition, with one source telling The Daily Telegraph that he was not “remotely being supportive” of his successor.

Dismissing Mr Corbyn’s suggestion that the party should have fought the legal action, they added that losing at trial could have cost Labour between £1.5 million and £2 million.

“It would be mad for any organisation to take the risk of going down for literally millions for a thing like that,” they added. “The settlement was very sensible on any basis.”