Peter Mandelson attended a party thrown by one of the Hinduja brothers whilst the British government was actively considering his passport application, it has been revealed. It is claimed that Mandelson "lavished praise" on the Indian tycoon whilst attending the penthouse bash.

Labour is now treating Mandelson's Hartlepool constituency as a potential marginal, fearing that the passports for favours scandal will seriously undermine Labour's vote in the once-safe north of England seat.