Labour deputy leader Tom Watson will keep the £540,000 donated to him by Max Mosley
It comes after a leaflet bearing his name calling for 'coloured people' to be deported was unearthed.
LABOUR has revealed it will not be taking any more money from Max Mosley as MPs demanded deputy leader Tom Watson repays the cash.
Jeremy Corbyn’s spokesman revealed they had no plans to pay back £540,000 gifted by the tycoon to Mr Watson’s office.
Following yesterday’s racism revelations, the spokesman branded comments made by Mr Mosley as “utterly repugnant”.
But Tories rounded on Labour for keeping the cash.
Senior backbencher Jacob Rees-Mogg said: “He ought to pay it back with interest.
“Max Mosley is now doubly disgraced.”
Fellow Tory Andrew Bridgen hit out: “Returning the money from Max Mosley is the very least Labour should be doing.
“They have been censured twice in the last few weeks for breaching equality law and Labour should be very keen to distance themselves from somebody associated with that sort of vile, racist language.”
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Tory Party deputy chairman James Cleverly said: “Tom Watson should seriously consider distancing himself from Mr Mosley and returning the money.”
As shadow culture secretary Mr Watson would be in charge of overseeing media regulation if Labour came to power and, alongside Mosley, has been an advocate of curbs on the Press.
Watson uses the money to fund his private office, the third largest in Parliament.