Sir Keir Starmer has been urged to address an all-new Labour scandal amid reports of a "smear campaign" against journalists.
The PM is being pressured to investigate links between one of his ministers and Labour Together, a prominent think tank accused of paying a PR firm to investigate reporting into its funding.
Labour Together is said to have hired PR firm Apco Worldwide to look into various reporters and identify their sources after stories about the £700,000 donations scandal.
The Sunday Times reported that Apco was paid £36,000 to carry out the investigation in 2023, when Labour Together was run by Josh Simons, now a Cabinet Office Minister.
The Conservative Party has now written to Labour chairwoman Anna Turley urging her to investigate Mr Simons' role in hiring Apco.
Labour has also been told to investigate the role of other Labour Together directors, including "serving Cabinet ministers", and to set out whether the party still considers it appropriate for Labour MPs to take cash from the think tank.
Labour should suspend all engagement with Labour Together "until all allegations have been independently investigated", Tory chairman Kevin Hollinrake said.
SNP Westminster chief Stephen Flynn urged the PM to sack Mr Simons as a minister, as he is "at the centre of this creepy spy scandal", while Reform UK's Nadhim Zahawi has raised questions over whether Sir Keir knew about the "smear campaign".
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No10 will 'be looking into' Labour Together amid pressure to launch probe following 'smear campaign' scandal
The Cabinet Office will "be looking into" the conduct of think tank Labour Together, which has been accused of paying a PR firm to investigate journalists reporting on its funding.
Liz Kendall told Times Radio on Monday morning: "Personally, and as a Government as a whole, we absolutely value the freedom of the press."
The Technology Secretary aded: "It’s right that this issue is being investigated by the relevant body here, the regulatory body, which is looking at public affairs companies.
"And the Cabinet Office will also be looking into this to make sure all the facts are established.”
While the PM has come under fire yet again, he is also now facing calls to sack former Labour Together director and now Government minister and MP for Makerfield, Josh Simons, following his alleged role in the scandal.
When asked about an investigation Mr Simons, Ms Kendall replied:"The Cabinet Office will be investigating the facts of what has happened.
"There’s already an investigation going on by the regulatory body that covers public affairs agencies, and that is absolutely right, too."
Keir Starmer reveals fresh details of plan for major new internet restrictions
The PM will unveil plans for a set of new social media curbs on Monday | GETTYSir Keir Starmer has revealed plans for a host of new internet restrictions in a bid to "protect children online".
The Prime Minister declared last night he would move to implement a set of new bans to block young people from accessing "harmful" parts of the internet.
Under his proposals, young people will be blocked from using VPNs to access pornography.
Restrictions on children interacting with AI "chatbots" are also being considered.
A consultation on banning under-18s from social media and limiting "infinite scrolling" will also begin in March.
Labour 'considering massive defence spending hike by 2029 with £17billion funding drive'
Labour is said to be weighing up a huge hike in defence spending before the end of this Parliament.
Last year, the Prime Minister promised to spend 2.5 per cent of GDP on defence by next April, rising to three per cent in the next Parliament, or after 2029.
The BBC reported overnight that Downing Street is now looking at proposals to meet that three per cent goal by the end of the current Parliament, which could last until 2029 unless an early General Election is called.
No decision has yet been taken, and the Treasury is said to be cautious over the plans.
Last March, the Office for Budget Responsibility calculated that increasing defence spending to three per cent of GDP would cost an extra £17.3billion every year.
Sir Keir Starmer told world leaders in Munich over the weekend: "To meet the wider threat, it's clear that we are going to have to spend more, faster."
But fears are likely to remain that any increase in defence spending could be wiped out by technicalities - including the Chagos deal.
Just days ago, former Defence Secretary Sir Ben Wallace said in a reply to Defence Minister Luke Pollard on social media: "There isn't any real defence spending increases other than Treasury tucking under, unfunded bills for Chagos, pay and National Insurance consequences.
"You know it, I know it and the Russians know it. Stop spinning and treating the public like fools."
Also on the PM's desk... Keir Starmer faces another resignation blow as Chagos deal architect 'considering No10 exit'
Sir Keir Starmer's national security adviser is thought to be weighing up plans to leave Downing Street in yet another blow for the beleaguered Prime Minister.
Jonathan Powell, credited as the architect of the deal to cede sovereignty of the Chagos Islands to Mauritius, could exit his role by the end of the year.
If Mr Powell should leave, it would mark the fourth blow to Sir Keir following the departures of his Chief of Staff Morgan McSweeney, Cabinet Secretary Sir Chris Wormald, and communications chief Tim Allan in the wake of the Mandelson scandal.
PM faces pressure from ALL sides to probe Labour Together 'smear campaign' scandal
The Prime Minister is facing fury from all angles over the 'creepy spy scandal'
|HOUSE OF COMMONS
As well as the Tories' letter and Stephen Flynn's "creepy spy" jab, the Prime Minister is facing fury from all angles over the scandal - including his own party.
Left-wing backbencher Clive Lewis, Labour MP for Norwich South, told The Telegraph that both Labour and the Prime Minister “should now commit to full co-operation with an independent inquiry to establish the facts: what was commissioned, who authorised it, who knew about it, and how far it went”.
Another Labour backbencher demanded an investigation into Mr Simons for allegedly commissioning the research.
“I definitely think there should be an investigation followed by immediate disciplinary action if the facts are verified,” one MP said.
Reform UK’s Nadhim Zahawi said: “This is a huge story. If this was any other party, the calls for an investigation would be deafening.
“We need to know who knew about this inside Labour. Did the PM know?”
'FULL transparency!' Kevin Hollinrake issues statement on letter to Labour's Anna Turley
Kevin Hollinrake, behind the letter to Labour chairwoman Anna Turley, said last night: "Labour Together’s behaviour shows a worrying contempt for the free press, a fundamental foundation of our democracy.
"With its close and widely known links to the heart of Government, serious questions must be answered about who was aware of these actions, including whether senior figures around the Prime Minister knew.
"After Starmer’s attempts to deflect from the Mandelson-Epstein affair, the public will accept nothing less than full transparency."
Josh Simons says he was 'shocked and surprised' after scandal emerged
Josh Simons, the minister at the centre of the row, told The Sunday Times: “I was surprised and shocked to read the report extended beyond the contract by including unnecessary information on (Times journalist) Gabriel Pogrund.
“I asked for this information to be removed before passing the report to GCHQ. No other British journalists were investigated in any document I or Labour Together ever received.”
Alison Phillips, the CEO of Labour Together, wrote to staff saying she was "horrified" by the scandal - and said she had been assured it was “not the intention” to look into reporters.
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