Sources inside Labour’s ruling executive raised fears the Equalities and Human Rights Commission probe into alleged antisemitism could “bankrupt the party,” a report claimed.
Members of the National Executive Committee (NEC) suggested the party could be exposed to lawsuits amid growing speculation about the outcome of the investigation, the Independent reported on Sunday.
The issue is understood to have been raised at a meeting of the NEC but the discussion was reportedly “shut down” by party officials and allies of Labour leader Jeremy Corbyn, sources told the newspaper.
According to the report, members of the NEC fear they may be held personally financially responsible if the party is bankrupted by extensive damages.
“People are really worried. The party has been asked to let us know what indemnity it has because there are concerns that NEC members are going to ultimately be responsible for this.”
But a Labour source denied concerns, saying: “It’s a regulatory investigation which does not involve lawsuits against the Party or any individual.”
Labour is currently under investigation by the EHRC, which is expected to deliver its verdict as early as January – making it the second party to be probed by the watchdog after the British National Party.
The probe, launched in May, seeks to determine whether the party, its employees or its “agents” unlawfully discriminated against, harassed or victimised Jews.