Ministers face questions over whether public money is being used to pay for Prince Andrew’s settlement, amid fears the issue will cast a “bleak shadow” over the Queen’s Platinum Jubilee.

Labour MP Andy McDonald is seeking government assurances that taxpayers’ cash is not being used to help fund the Duke of York’s undisclosed payout to Virginia Giuffre, which is reportedly £12m.

As part of his civil sex assault case settlement with Ms Giuffre, Andrew has promised to make a “substantial donation” to her charity in support of victims’ rights.

It has been reported that the Queen has agreed to help her second son with the settlement by personally making a £2m donation to the charity.

This has led to further questions about how Andrew’s settlement is being funded and whether money the Royal Family receives from public funds is involved.

Buckingham Palace has so far made no comment on Andrew’s settlement.

Mr McDonald confirmed he will seek to raise the matter in parliament next week, possibly through an urgent question, when the House of Commons returns from its February half-term recess.

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The former shadow minister told Sky News he would use “whatever opportunity” to “seek that assurance from the government benches that there’ll be no call upon the public purse in the settlement of this euphemistically-called ‘donation'”.

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Mr McDonald insisted that it “shouldn’t be a difficult question to answer” as he warned against allowing the issue to “hang around”.

“We all know how opaque royal finances are and that’s part of a wider debate,” he said.

“But this is a singular issue that the Palace and Downing Street could resolve instantly.

“They could just make it abundantly clear there’ll be no recourse to public funds for the settlement of this matter.

“I don’t care whether it comes out of the Palace and Downing Street. But we need to have that position clarified and clarified quickly.”

He added: “If he [Prince Andrew] wants to go to his mother for a bailout, then the taxpayer has got to be assured it’s not going to be coming out of their coffers. Simple as that.”

The Middlesbrough MP predicted “an almighty hue and cry” if it emerged public money was being used.

“That would just be a step too far,” he said. “I can’t predict what form that protest would take.

“But people would be inordinately upset if taxpayers’ monies was used as a payoff for litigation, from a man who was hitherto quite content to be associated with a paedophile [Jeffrey Epstein] and child trafficker [Ghislaine Maxwell].”

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Mr McDonald expressed his fear that “a rather bleak shadow” would be cast over the Queen’s Platinum Jubilee celebrations in June should questions over Andrew’s settlement be left unanswered.

“The Queen is held in highest regard and people want to celebrate her Platinum Jubilee free from these considerations,” he added.

“That’s not been allowed to happen with this saga rumbling on. He [Andrew] doesn’t care anything about the people, but presumably he cares something about his mother.

“He should bring it to an end and let it be known how this is going to be settled.”

Mr McDonald also called on Andrew to relinquish his Duke of York title in a similar way to how he had given up his military titles earlier this year.

Buckingham Palace told Sky News they had never commented on the duke’s legal affairs and wouldn’t do so now.

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