In a statement, Mr Craig’s lawyer said the commission’s decision was a “complete and total exoneration”.

“Mr Craig had no inside information and had no way of knowing who would win the election,” he said.

“It is widely recognised that some people place bets against the result they wish to happen, for example, betting against their football team. Such behaviour helps cushion the disappointment of a loss.”

The statement also criticised the Labour Party, saying Mr Craig had been “badly treated”.

“It is important to state that no investigation was undertaken before Kevin Craig’s name was released and he was then publicly suspended from the Labour Party,” his lawyer said.

“The first Kevin Craig knew of this matter was when he was publicly suspended and that should not have happened. There is no precedent for such actions.”

As well as suspending him, Labour also returned a £100,000 donation made by Mr Craig in 2023.

Mr Craig – a longstanding Labour donor – says he has now been readmitted to the party.

The Labour Party has been approached for comment.