Keir Starmer will not be fined by Durham Police over the "Beergate" saga, police have said.
The Labour leader breathed a sigh of relief after the force said they would take no action against him or his deputy Angela Rayner for enjoying a beer and a takeaway curry with activists last year.
Durham Police said officers had trawled through a "substantial amount" of evidence but it had decided to take no further action.
The decision is a massive boost to the Labour leader and his deputy - as both said they would quit if they received a fine for breaching Covid rules.
This would have plunged the party into crisis - but instead it's the Tories who are caught in a political storm after Boris Johnson said yesterday that he would resign.
It also underlines the contrast between Mr Starmer and Boris Johnson, who was fined by the Metropolitan Police for attending a lockdown birthday gathering in June 2020.
A bitter Tory source said that "people in Durham would be surprised to learn" that during the pandemic they were allowed to stand around drinking inside, after work, with people outside their household.
Mr Starmer told reporters: "People said to me I was taking a risk by saying I would step down if I was fined. But it was never about that.
"For me it was a matter of principle. It shouldn't be controversial to say those who make the law can't break the law. But we have to set the bar far higher than that."
And Ms Rayner said: "We've always been clear that no rules were broken in Durham. The police have completed their investigation and agreed, saying that there is no case to answer.
"Integrity matters in politics. The contrast with the behaviour of this disgraced Prime Minister couldn't be clearer."
The row was triggered by grainy footage of Mr Starmer enjoying a beer in a constituency office in Durham on April 30.
The Labour leader was campaigning ahead of the crunch Hartlepool by-election on May 6, which was held the same day as local elections across the country.
Indoor gatherings were banned at the time under Covid rules but there were exemptions for work purposes. Political campaigning was also permitted ahead of the elections.
Labour always maintained Mr Starmer broke off from his work to have a quick takeaway dinner and had not broken any rules.
Police initially said they would not investigate Beergate but U-turned in May amid a concerted campaign from Tory MPs and right wing newspapers.
A Tory source grumbled: "People in Durham will be surprised to learn that they were allowed to stand around drinking inside, after work with people from outside their household under Covid restrictions.
"Other forces have obviously taken a different view. Of course if Keir Starmer held himself to the standards he demands of others he would have resigned two months ago."
Conservative backbencher Michael Fabricant tried to claim it was "another establishment stitch-up".
He told MailOnline: "I am surprised how Durham Police decided not to fine Starmer and Rayner.
"Many people will think that, as a QC and a lawyer, Starmer wormed his way out of a conviction while, in effect, blackmailing Durham Police by saying: 'You’ll be bringing down the Leader of the Opposition if you fine me'.
"Many regular people will feel this is another Establishment stitch-up."
Mr Johnson and former Chancellor Rishi Sunak received fixed penalty notices from the Metropolitan Police for attending the PM's lockdown birthday do in June 2020.
But they both refused to resign, despite being found to have broken Covid laws.
Durham Police said in a statement: "Following the emergence of significant new information, an investigation was launched by Durham Constabulary into a gathering at the Miners' Hall, in Redhills, Durham on April 30 2021. That investigation has now concluded.
"A substantial amount of documentary and witness evidence was obtained which identified the 17 participants and their activities during that gathering. Following the application of the evidential Full Code Test, it has been concluded that there is no case to answer for a contravention of the regulations, due to the application of an exception, namely reasonably necessary work.
"Accordingly, Durham Constabulary will not be issuing any fixed penalty notices in respect of the gathering and no further action will be taken."
A Labour spokesperson said: “Keir Starmer and Angela Rayner have always been clear that no rules were broken in Durham.
"The police have completed their investigation and have agreed saying that there is no case to answer.”
