19:37

Alyn Smith, the Scottish National party MEP, has apologised unreservedly to the chairman of the Brexit party and donated an undisclosed sum to the military charity, Help for Heroes, after claiming the Brexit party was “a shell company that’s a money laundering front”.

Richard Tice, the chairman and co-founder of the Brexit party, demanded a retraction after Smith made the remarks live on Sky News following the European election earlier this month, in which the Brexit party won a Scottish regional seat.

Smith initially refused to back down, leading Tice to threaten libel action. Smith has now withdrawn his remarks and paid “significantly” towards Tice’s legal costs, according to the Brexit party.

The Brexit Party (@brexitparty_uk) Our Chairman @TiceRichard has received a full apology, legal costs and a donation to charity from SNP's @AlynSmith for unfounded allegations.



Read our full statement below. pic.twitter.com/RBUsUG9cZk

In a statement issued by his solicitors, Smith said:

On 27 May 2019, I was interviewed by Sky News. In that interview, I stated in the context of political donations that the Brexit party is a ‘shell company that’s a money laundering front’. Its chairman, Richard Tice, is concerned by implication this allegation related to him, although that was not my intention. Having reflected upon this following a complaint from Mr Tice, I apologise unreservedly to him and withdraw my allegation. I am happy to state clearly that I do not have any evidence to support such an allegation. I spoke in the heat of the moment and I am happy to set the record straight. I have agreed to pay a sum in damages to the Help for Heroes charity and I have agreed to pay legal costs.

Tice said he was pleased Smith had withdrawn his “wholly unfounded and damaging allegations”, adding: