LABOUR has been accused of an “outrageous cover-up” after a government special adviser blocked members from discussing Peter Mandelson’s connections to Jeffrey Epstein at conference.

Activists in a south London party branch endorsed a conference motion calling for an “inquiry into the circumstances of Peter Mandelson’s appointment as US ambassador.”

But a government special adviser intervened to prevent the local constituency party from submitting the motion to the conference in Liverpool.

The call for an inquiry was passed “almost unanimously” at a branch meeting in Thornton Heath, Croydon, on Wednesday night, a party source said.

But when activists attended a wider meeting of the Streatham and Croydon constituency party the following evening, they were dismayed to see that it was not on the agenda.

After querying the motion’s absence, party members were told it had been vetoed by constituency chair Oscar Harman, special adviser to Housing Secretary Steve Reed.

Mr Harman was not at the meeting, but acting chair Holly Smith told members it had been his decision to reject the motion, which raised concerns that “the Civil Service may have been at least partly aware of the extent of Peter Mandelson’s relationship” with the paedophile financier when the Labour peer was appointed as British ambassador to Washington.

Martin Abrams, a councillor in the same area who recently quit Labour to join the Greens, said: “This is clearly a direct conflict of interest for a special adviser who is a member of the UK government, paid by taxpayers’ money, to be double-jobbing as the chair of the local Labour Party in the seat of the minister employing him.

“This goes to show how rotten Labour is, and the fish rots from the head.”

Another member present at the meeting said: “Holly said, ‘Oh I’m sorry, the chair has made a decision, he’s read the motion, I’m not aware of what his basis for rejection is.’

“She was asked what the reason for rejecting it was, and she said: ‘I’m not briefed on the reason.’

“This is a terrible look if the party won’t even acknowledge that Lord Mandelson was a close ally of a paedophile.”

The code of conduct for special advisers states that they “must not take public part in political controversy” and that they “must ensure that no conflict arises, or could reasonably be perceived to arise, between their official duties and their private interests.”

Tory shadow home secretary Chris Philp said: “It appears the code has been broken. Steve Reed has serious questions to answer.”

Conservative chair Kevin Hollinrake added: “It is outrageous that an adviser to the Housing Secretary was involved in blocking debate, a clear conflict of interest that reeks of a cover-up.”

Mr Harman was appointed a special adviser earlier this month, after his boss Mr Reed was promoted to housing secretary in the reshuffle that followed Angela Rayner’s resignation as deputy prime minister.

Mr Reed is the strongest Cabinet ally of Sir Keir Starmer’s embattled chief of staff Morgan McSweeney, said to have been mentored by Lord Mandelson.

When contacted by phone, Ms Smith said: “Thank you for letting me know. I’m not going to have this conversation.” She then hung up.

Asked if it was correct that he had blocked the motion, Mr Harman replied “not quite,” before referring the query to his line manager.

Labour has been contacted for comment.