MAXED OUT

Labour say they’ll refuse to take more cash from Max Mosley after racist leaflet scandal – but deputy leader Tom Watson won’t return £500k donation

Top Tory James Cleverly called on the Labour deputy leader to consider giving back the cash he got from Mosley

LABOUR will no longer take any donations from disgraced Max Mosley, the party revealed today.

But they will not ask deputy leader Tom Watson to hand back £500,000 he has already pocketed from the tycoon.

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Tom Watson faces demands to give back money from Max MosleyCredit: Rex Features

A spokesman for Jeremy Corbyn said the racist election leaflet published under Mr Mosley's name was “utterly repugnant”.

But he insisted the decision to block any more money was taken before the document came to light yesterday – and related to new guidelines on whether donations were “ethical or appropriate”.

The spokesman added: ";These large contributions are a subject of close scrutiny and internal regulation. There won’t be any more contributions to the party or frontbenchers by Max Mosley."

Earlier today the Tories turned up the heat on Mr Watson, calling on him to return the donation he got from the ex-Formula One boss.

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Max Mosley admitted that a far-right election leaflet that had his name on it was 'probably racist'

Conservative deputy chairman James Cleverly warned that the gift could undermine Labour’s position on the freedom of the press.

Both Mr Mosley and Mr Watson have campaigned to impose new restrictions on the media.

Mr Cleverly said: “Tom Watson should seriously consider distancing himself from Mr Mosley and returning the money.

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"He must avoid the impression of an unhealthy connection between Labour's position on press freedom and a wealthy donor who may find himself embarrassed by reporting of his past actions.

"Whatever the provenance of this leaflet, it is absolutely right that a free and independent press investigate people of influence in British society."

Mr Mosley, 77, the son of fascist leader Oswald Mosley, has previously denied promoting racist views while campaigning for far-right election candidates.

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Max Mosley claims he has no recollection of leaflet stating 'coloured immigrants' bring leprosy to Britain that he is listed as the publisher for

But last night he was forced to admit a campaign leaflet with his name on it was racist.

The leaflet, from a 1961 by-election in which Mr Mosley acted as an agent, said: “Coloured immigration threatens your children’s health.”

In an interview on Channel 4 News last night, the businessman said he had “no reason to apologise to anyone” and suggested he would continue to donate money to Mr Watson.

Mr Mosley, who ran world motorsport until 2009, has campaigned against press freedom ever since he was filmed having an S&M orgy with prostitutes.

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He is a financial backer of Impress, the state regulator for the press, and a supporter of Mr Watson who shares his views on media regulation.

Mr Watson said: “My views on press regulation are well known and have not changed.

“The views expressed by Max as a young man are not the views he holds now, just as the Rothermere family [owners of the Daily Mail] no longer uses its newspapers to support fascism.”

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