Margaret Hodge threatens to take Labour Party to court over investigation into her row with Jeremy Corbyn

Veteran MP being investigated by Labour after showdown with party leader

Dame Margaret Hodge is being investigated after calling Jeremy Corbyn a 'racist and antisemite' (Getty)

Dame Margaret Hodge has threatened to take the Labour Party to court if it continues its investigation into her attack on Jeremy Corbyn over antisemitism in the party.

The veteran Labour MP is embroiled in a bitter dispute with her party leadership, which has insisted she should apologise for calling Mr Corbyn a "racist and antisemite" over his response to antisemitism in Labour ranks.

Raising concerns about the fairness of the inquiry into her conduct, Dame Margaret's lawyers said they reserved the right to "refer this matter to Court".

In a strongly worded letter to Labour's general secretary, Jennie Formby, who is overseeing the investigation, they wrote: "In the event that you take the misguided step of continuing with this investigation, we would expect any further steps to comply with principles of natural justice and fairness.

"We will be monitoring this, and reserve all of our client's rights to refer this matter to Court under the contractual relationship between our client and the Party, and the obligations (express and implied) which follow from this."

Dame Margaret, who is Jewish, confronted her party leader in Parliament last month over his handling of the antisemitism crisis engulfing Labour, claiming he did not want "people like me" in the party.

In response, Mr Corbyn's spokesman vowed that "action will be taken" against the veteran MP, and Dame Margaret received a letter from Ms Formby the following day informing her that she was under investigation. She also received a telling off from Nick Brown, the chief whip, after several people reportedly complained about her behaviour during the row.

In their latest letter, Dame Margaret's lawyers raised a series of concerns about the nature of the investigation, including asking why the MP had been asked to apologise before the supposedly "fair" investigation found she had committed any wrongdoing.

In a letter suggesting the investigation would be "brought to an end" if Dame Margaret apologised for her actions, Ms Formby said: "We are currently at the beginning of the process. Nobody has prejudged the outcomes, nor is there any improper motive for the investigation."

In response, Dame Margaret's lawyers wrote: "You claim that your investigation has not been pre-judged and that under the Labour Party Rules a fair process can still be followed, but that investigation would be dropped if our client apologises.

"For our client to be forced into an apology, this would mean that you have pre-determined that she has done something wrong."

They accused Ms Formby of "arrogantly choosing to ignore" the fact that Dame Margaret receiving a reprimand from the chief whip appeared be a "predetermination" of the outcome of the investigation into her conduct, meaning the latter would not be conducted fairly.

In her letter, Ms Formby had written: "To be clear, the current investigation is not directed to your client raising concerns about antisemitism.

"As the chief whip's letter points out, Labour Party members have a right to raise concerns about antisemitism. The party is making considerable efforts to address that issue.

"Rather the investigation is concerned with the alleged abusive manner in which your client behaved."