The SNP's senior MEP has apologised to the chairman of the Brexit Party after claiming the breakaway political movement was "a shell company that's a money laundering front".

Alyn Smith, who was first elected to Brussels in 2004, said in a statement today that he had agreed to pay a sum in damages to charity as part of his apology.

The MEP had claimed in an interview in the wake of last month's European elections that the Brexit party was “a money laundering front and I have absolutely no doubt they’ll be shown to be every bit as feckless as their predecessors in UKIP were”.

That claim prompted the party’s chairman, Richard Tice, to send a legal letter to Mr Smith calling for the MEP to make an immediate statement “making it absolutely clear that neither the Brexit Party nor Mr Tice are involved in money laundering”.

Alyn Smith has apologised to the Brexit Party chairman over his remarks

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"Its chairman, Richard Tice, is concerned by the 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 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."

The full settlement has been kept confidential.

Mr Tice said: "I am pleased Alyn Smith has now apologised and withdrawn these wholly unfounded and damaging allegations.

"People are entitled to take a different view of Brexit and I respect their right to do so. But I will not hesitate to take action against those who make false claims about the Brexit Party and by implication those that run it."

SNP MEP Alyn Smith apologises over Brexit Party 'money laundering' claim