Labour has said it will not accept further donations from the former motor-racing boss Max Mosley, after revelations that he had published a racist political leaflet in 1961.

Mr Mosley gave £540,000 to Labour’s deputy leader Tom Watson between 2015 and 2017, and said on Tuesday that he would “absolutely” donate more. The two men share an interest in stronger press regulation.

But a spokesman for Labour leader Jeremy Corbyn said on Wednesday that the payments have “come to an end and they won’t be restarting.”

The spokesman said that the decision had been taken before this week’s revelations, and all large donors to Labour were being “strictly” monitored.

The party has seen a boom in income from membership fees, helped by recent leadership contests. It also receives millions of pounds a year from trade unions.

Labour said that it would not be returning money given by Mr Mosley. It said it was possible for Mr Mosley to have changed his views, comparing the scenario to the Daily Mail’s one-time enthusiasm for the Nazis.

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