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A Cabinet Office minister has insisted he shares the “moral outrage” over Lord Peter Mandelson’s continued payment of £75,000 following his sacking as US ambassador.

A day after the sum emerged in Government files, Nick Thomas-Symonds told Sky News: “Obviously I share the moral outrage that Peter Mandelson still has that £75,000.

“You can now look at the documents and see why this decision was made on a value for money basis. There was an initial claim of £547,000 and this has been reduced to £75,000…

“But from a moral perspective, it is incredibly difficult to even imagine that money is still being held.

“So I would say, do the right thing, do the honorable thing, donate the money to charity. And I think maybe a charity that supports the victims would be appropriate.”