Sunday 5 February 2017 5:50 pm

Labour donor John Mills could be ejected from the party over Brexit referendum payments to Ukip

One of Labour's largest individual donors could be thrown out of the party after claims that he financial supported Ukip.

John Mills, the millionaire behind consumer products firm JML, created the Labour Leave campaign. But now London MEP Seb Dance is claiming the retailer broke party rules by handing cash to Eurosceptic party Ukip.

Labour rules mean that Mills could be forced out if party bosses conclude he has supported a political rival.

Read More: Labour donor and JML founder demands a "credible" economic policy

Dance's complaint is focused on asking whether Mills broke party rules by directing funding specifically to Ukip, rather than referendum groups like Vote Leave or Grassroots Out.

Mills told City A.M. that a disputed sum of £18,500 was spent on events in the run up to the Brexit vote, which featured cross-party speakers and were jointly funded.

“This was absolutely standard stuff, which everybody was doing,” Mills said. “There were costs involved in running those meetings and we share those between the organisations.”