Daniel Korski has dropped out of the race to become the Conservative candidate in the London mayoral election following a claim he groped a TV producer in Downing Street.
Daisy Goodwin alleged she was touched inappropriately by Mr Korski 10 years ago in newspaper articles published in The Times and Daily Mail.
In a statement he said: “I have decided, with a heavy heart, to withdraw from the Conservative mayoral contest.
“I categorically deny the allegation against me. Nothing was ever put to me formally ten years ago. Nor seven years ago when the allegation was alluded to. No investigation has ever taken place. I have been clear I would welcome and constructively participate in any investigation.
“However, the pressure on my family because of this false and unproven allegation and the inability to get a hearing for my message of ‘The London Dream’ makes it impossible for my campaign to carry on.
“I am proud of having run a positive campaign that championed new ideas, technology and talent, and the years I have campaigned for the Conservative Party and to make the lives of Londoners better.
“I believe strongly that Londoners deserve an uplifting and positive vision for their city. I tried hard to offer that.
“The news agenda is becoming a distraction from the race and the Conservative Party.
“I wish the excellent remaining contestants well and I know the Conservative Party’s eventual candidate will beat Sadiq Khan and offer the kind of rejuvenation London so desperately needs. I will do my utmost to support the Conservative Party and the eventual Conservative candidate.
“Thank you to my family, friends and all my supporters.”
Ms Goodwin, who wrote hit TV show Victoria, said: “I am glad he has withdrawn - it shows that women can speak out against misbehaviour in the workplace and be believed.
“If I was in the ethics department of the Cabinet Office I would be wondering why such behaviour went unchecked in Downing Street.”
Following his announcement, Conservative officials said the contest to be the party’s pick in next year’s mayoral election would proceed with the two other shortlisted candidates: Mozammel Hossain KC and Susan Hall, despite calls by some for the selection process to be reopened.
Samuel Kasumu, a former mayoral hopeful who failed to make the Conservative longlist, was among those urging CCHQ to "put this right" through a fresh contest with "more direct involvement" from members.
Hustings will take place until July 3, with members voting for their preferred candidate between July 4 and 18. The successful candidate will be announced the following day.
Ms Hall, a London Assembly member, said Mr Korski should still be investigated over the groping allegation.
“Daniel fought a hard campaign with lots of fresh ideas and I appreciate his contribution to the debate.
“The allegations against him are serious and it is right that they are investigated in the proper way,” she tweeted.
Mr Korski had already denied the claim by Ms Goodwin, following an incident which allegedly took place while he was a special adviser to then prime minister David Cameron.
However the Conservative mayoral selection race descended further into crisis earlier on Wednesday as Ms Goodwin revealed she had made a formal complaint to the Cabinet Office.
The TV writer said she had received “many messages of support” and “had been contacted by other women with some very interesting stories.”
Education minister Claire Coutinho said on Wednesday morning she was pausing her support for Mr Korski, after the “very serious and concerning” allegation.
Having previously praised his “clear vision for London”, Ms Coutinho told Sky News: “I would say I’d be on pause at the moment because lots of things are happening.
“If there is a complaint in the system, it needs to be followed up swiftly so we can find the facts and see what’s happened, but I do think it’s a very serious and concerning allegation.”
Senior Tory Robert Halfon had already suspended his support for the Korski campaign.
Earlier on Wednesday, Downing Street declined to say whether the Prime Minister believes Mr Korski is a suitable candidate or if he should suspend his campaign, but did say “conclusions shouldn’t be drawn on until the processes are followed through”.
Mr Sunak’s press secretary said: “Obviously these allegations are very serious. They are allegations that have obviously been denied by Daniel Korski himself. They should be handled in the proper way.”
