Labour has dramatically dropped an investigation into the conduct of Dame Margaret Hodge after she accused Jeremy Corbyn of being an "antisemite" and a "racist" in a heated exchange.
In a surprise move Labour's General Secretary Jennie Formby wrote to Dame Margaret on Monday to tell her the investigation had been ended, with no action to be taken.
The threat of disciplinary action became the epicentre of the row within the party over its failure to adopt the internationally recognised definition of antisemitism, which caused a huge standoff with its Jewish supporters and MPs.
A Labour source confirmed to the JC that Ms Formby had written to Dame Margaret confirming the investigation into the House of Commons dispute had ended and that no further action will be taken.
The source said the veteran Labour MP had herself written to Chief Whip Nick Brown "expressing regret" for the manner in which she raised her views.
But in a tweet, Dame Marget emphasised that she had not apologised: "Just to be clear: there have been no apologies - on either side."
Just to be clear: there have been no apologies - on either side
— Margaret Hodge (@margarethodge) August 6, 2018
The JC understands that Ian Austin, who is also under investigation, has not received any similar communication from Ms Formby and nothing has changed with regard to his situation.
Dame Margaret added on Twitter: "I’m pleased that the Labour Party has finally dropped their ‘action’ against me.
"After 55 years of (Labour Party) membership, going after me instead of addressing the issue was wrong.
"In 2018 antisemitism that has again reared its ugly head and the campaign against it goes on.
"The Labour Party must adopt the IHRA definition (of antisemitism) in full to start to rebuild trust. Thanks to everyone for kind messages of support which have kept me going."
Dame Margaret released more of her lawyers' correspondence with Labour, which castigated the party for implying she had apologised for confronting Mr Corbyn.
This is the response to the letter I received from the Labour party earlier this evening. To be clear again; no apologies - on either side. pic.twitter.com/zDogfyk9LV
— Margaret Hodge (@margarethodge) August 6, 2018
"You have entirely misrepresented our client's discussions with the Opposition Chief Whip in a cynical attempt to save face in your necessary climb down," her lawyers at Mishcon de Reya wrote.
"It is clear you were making the rules up as you went, even in defeat you have sought to spin your final decision."
