West Bromwich Labour MP Tom Watson today accepted substantial undisclosed libel damages over his alleged role in smear emails between former Downing Street spin-doctor Damian McBride and activist Derek Draper targeting Tory MPs.

He took High Court proceedings over two stories published in The Sun, earlier this year in April, on the Smeargate scandal.

The West Bromwich East MP has always stressed he had no knowledge of the plan to set up a Red Rag website designed to make serious and false allegations about the private lives of a number of Tory MPs.

Commenting on the paper’s acceptance that the allegations made against him were untrue, Mr Watson said: “Today’s announcement is a great relief and hopefully the matter is now over.” Patrick Callaghan, solicitor for News Group Newspapers Ltd, which has agreed to pay damages and legal costs, unreservedly withdrew the allegations and apologised.