The row comes as the party's internal power struggle continues to rage.

An article in the Observer yesterday saw Wolverhampton South West's Rob Marris accused of erasing the files following his resignation as shadow finance secretary.

This left those at the top of the party 'livid' according to an anonymous source quoted in the piece.

MORE: Jeremy Corbyn aides 'refuse Tom Watson' meeting with Labour leader

MORE: Tom Watson for sale on ebay - at just £66,000

An internal email said: "Unfortunately, it looks like someone from Rob Marris' office has deleted the vast majority of the finance bill records and notes on each clause from the shared drive."

This led another Labour source to mention deselection, suggesting it 'fitted in with a campaign of sabotage'.

However, Mr Marris has come out fighting, issuing a statement on his website last night that refuted the article's suggestions.

His statement read: "Contrary to the implication given by a front page article in the Observer on July 3, I have not removed Labour Party material from a shared computer drive.

Advertising

"The material removed did not belong to the Labour Party. It was created by my own office to help me as a Shadow Treasury Minister.

"I paid for this material using my Parliamentary staff allowance to help fulfil my role as a Shadow Minister.

"The Labour Party did not pay a penny for it, and it had not been stored on a Labour Party drive. After I resigned, no-one from the Shadow Treasury team contacted me to ask to borrow my material. Instead an anonymous 'Labour source' has launched a vicious attack on me."

Contrary to the implication given by a front page article in the Observer on 3 July, I have not removed Labour Party material from a shared computer drive.

Advertising

The material removed did not belong to the Labour Party. It was created by my own office to help me as a Shadow Treasury Minister. I paid for this material using my Parliamentary staff allowance to help fulfil my role as a Shadow Minister. The Labour Party did not pay a penny for it, and it had not been stored on a Labour Party drive.

After I resigned from it, no-one from the Shadow Treasury team contacted me to ask to borrow my material. Instead an anonymous "Labour source" has launched a vicious attack on me, and threatens me with deselection. Not a great way to ask for the material.

It is regrettable that the Observer published an anonymous person's attack on me without the newspaper having the courtesy to contact me to check the facts. I am dismayed that someone who hides their own identity seems to be trying to damage my reputation for their own political ends. I am sure that the Shadow Chancellor and his office will be keen to decry this sad attempt to smear me.

The Labour Party gets hundreds of thousands of pounds of "Short money" each year. This is taxpayers' money to help the Official Opposition fulfil its role in our democracy, holding the government to account. None of that money was offered to me for research in the Shadow Treasury team. So the interesting question is this: what has happened to all the Short money?

Rob Marris MP