Grooming gangs inquiry in chaos: Labour probe into child sex abuse falling apart as potential chairman and three victims pull out amid ‘cover-up’ fears

Labour’s investigation into grooming gangs was ‘descending into chaos’ last night.

In a bizarre development, a candidate to lead the child sexual abuse review has withdrawn at a late stage.

Three sexual abuse victims also resigned from the advisory group set up by the inquiry, describing it as a ‘cover-up’ and condemning the ‘toxic environment’.

The uproar will be hugely embarrassing for Prime Minister Sir Keir Starmer, who had to arrange the review this year.

Just six months ago he accused those who called for an investigation of joining a far-right bandwagon.

Campaigners calling for action on child abuse gangs in Pakistan were condemned as racist until the government’s own troubleshooter, Baroness Casey, concluded there were a ‘disproportionate number of men of Asian ethnicity’ among the suspects.

Veteran social worker Annie Hudson was shortlisted to chair the three-year investigation, which is likely to cost taxpayers tens of millions of pounds, but withdrew her name yesterday.

But it came a day after abuse victims Fiona Goddard and Ellie-Ann Reynolds resigned from the inquiry’s advisory panel, prompting harsh criticism of the Home Office.

Fiona Goddard (pictured), who also suffered at the hands of grooming gangs, resigned from the inquiry’s victims and survivors liaison panel on Monday.

Yesterday, a third woman, identified only as ‘Elizabeth’ due to anonymity rules imposed on sexual abuse victims, also said she would no longer enter the competition.

In her resignation letter, Elizabeth said the process appeared to be a ‘cover-up’ and ‘created a toxic environment’ for survivors.

And in a hugely damaging development yesterday, Ms Goddard accused Conservation Minister Jess Phillips of misleading MPs about proposals to ‘widen’ the scope of the inquiry.

In a letter to the House of Commons home affairs select committee on Monday, Ms Phillips, who oversaw the establishment of the inquiry, told MPs it was ‘wrong’ that ministers were trying to expand their remit.

But yesterday it emerged that consultation papers had been sent to the victim group asking: ‘Should the investigation focus explicitly on ‘gangs’… or should it take a broader approach?’

Ms Phillips was asked about the move by Ms Goddard last month and those messages were also published.

Quotes obtained by campaign group Open Justice UK appeared to contradict Ms Phillips’ letter to a House of Commons committee.

Many victims believe expanding the investigation would weaken local authorities’ focus on the failure of police and other officials to combat grooming by largely Pakistani gangs.

Last night Ms Goddard called for the minister to resign or be fired.

Ms Goddard told Channel 4 News: “Jess Phillips needs to be sacked because I don’t think her behavior, particularly in the last 24 hours, is acceptable for the position she holds.”

‘He openly accused me of lying even though he knew I was telling the truth.’

He has previously said: ‘When a minister dismisses you and opposes you when you are telling the truth, it takes you back to that feeling of not being believed.’

Senior social worker Annie Hudson (pictured) was shortlisted to chair the three-year investigation, which is likely to cost taxpayers tens of millions of pounds, but withdrew her name.

Shadow Home Secretary Chris Philp said: ‘Labour’s rape gang investigation is descending into chaos.

‘Survivor Fiona Goddard directly contradicted what minister Jess Phillips told Parliament and I must say I believe Fiona.’

He added: ‘The Labor Government never wanted this investigation to take place in the first place.

‘Keir Starmer disgracefully denigrated those who made this call as if they were jumping on a far-right bandwagon; This was exactly the kind of language that led to the cover-up of these crimes.’

The Daily Mail understands there are several candidates left in the race to lead the inquiry, including former senior police officer Jim Gamble.

Earlier this week, Ms Reynolds said the ‘final turning point’ that prompted her to resign was ‘an effort to change the mandate, to broaden it to downplay the racial and religious motivations behind our abuse’.

He also said the investigation team used ‘condescending and controlling language’ towards the survivors.

In his resignation letter, he also described a ‘toxic, fear-filled environment’ and a ‘high risk of people feeling silenced again’.

Ms Phillips told the House of Commons that she ‘absolutely regretted’ the survivors leaving their roles, but said: ‘Allegations of deliberate delay, lack of interest or widening and dilution of the scope of the investigation are false.’

Downing Street said survivors were ‘absolutely at the heart of what we do’.

The Prime Minister’s spokesman denied the investigation was in crisis and told reporters: ‘We are working with victims from across the country… to finally deliver justice.’

Asked whether the scope of the investigation could be broadened, the official said: ‘The terms of the investigation will be determined when we appoint a chairman.’

The spokesman could not say whether any victims remained in the advisory group.