LABOUR insisted “Peterborough deserves better” after it was revealed that the Brexit Party’s by-election candidate was involved with the asset-stripping firm that destroyed British Steel.

Lisa Forbes, the Labour hopeful for the marginal seat in tomorrow’s by-election, said the revelation about the Thatcherite party’s candidate Mike Greene was “shocking but not surprising.”

And a trade unionist told the Morning Star it showed the Brexit Party represented “spivs and gangster capitalists” rather than ordinary people.

Mr Greene, the bookies’ favourite to become the first MP for Nigel Farage’s new outfit tonight, was a former business partner in Greybull Capital — the private equity firm associated with a string of collapsed firms, most recently British Steel, which it bought for just £1 three years ago.

A Telegraph investigation claimed that he was the “frontman” for Greybull’s £25 million takeover of the M Local store chain in 2015.

The chain, which was an expansion of Morrisons supermarkets and employed 2,500 people at locations across the country, collapsed less than a year after the takeover.

Greybull had also pledged to reverse the fortunes of British Steel, which employs 4,500 workers in Scunthorpe and Teesside and creates approximately 20,000 supply chain jobs.

It bought British Steel from ailing Indian company Tata Steel in 2016.

However the company was put into compulsory liquidation a fortnight ago, putting workers’ livelihoods at risk.

Greybull was also involved in the 2012 collapse of goods supplier Comet. It was dubbed the “biggest raid in British corporate history” by Unite the union and cost approximately 7,000 jobs.

Mr Greene also appears to have been an office holder in E&J Ground Rents for two years. The firm was involved in buying and selling the rights to charge ground rent across Britain.

James Tuttiett, his former colleague in E&J, is now one of the largest property moguls in Britain due to his use of property freeholds.

The Peterborough seat, which voted by 60 per cent to leave the European Union in June 2016, was won by Labour candidate Fiona Onasanya in the June 2017 general election.

However a by-election was called after Ms Onasanya was jailed for lying about a speeding ticket and a public recall petition gained the appropriate number of signatures to trigger an electoral contest.

Labour hopes to retain the seat which it took with a thin majority of 607.

Labour MP Clive Betts, who chairs the housing, communities and local government select committee, said: “Ordinary people are being ripped off by greedy management companies who exploit them to make an inflated profit.

“It shows the Brexit Party’s true colours as a Thatcherite party with no concern for the people of this country.”

Lisa Forbes, Labour’s candidate for the seat, told the Star: “It is shocking but not surprising from the hard-right Brexit Party that their millionaire candidate has been accused of making money ripping off ordinary people.

“Peterborough deserves better.”

Unite young members chairman Damian Bailey told the Star: “Far from all their talk about sticking up for the working class, it’s clear that the Brexit Party only has the interests of our country’s spivs and gangster capitalists at heart.

“There is nothing patriotic about a vote for Mike Greene and his asset-stripping pals.

“Only a Labour government committed to rebuilding our left-behind communities can guarantee real change that can make our country great again.”

A spokesman for Mr Greene has insisted that he was a member, not a director, of E&J No4 and was never an active participant in running the investment vehicle.

“The investment was made seven years ago and was disposed of, from memory, to a pension fund five years ago.

“The investment is a recognised product and he participated as such. He never actually owned the freeholds. This was about ground rents, which are seen as a safe investment,” he said.

The Brexit Party has not commented.