SIR KEIR Starmer and his deputy Angela Rayner have both been cleared by police over the so-called Beergate row.
Durham Constabulary said there was “no case to answer” as the gathering of Labour activists in April 2021 - where beer and curry were served - was a work event.
Sir Keir, who had promised to resign if fined by the force for breaching lockdown rules, said it had been a "very good week for Labour."
But Tory MP Michael Fabricant described it as an "establishment stitch-up."
In a statement, the force said officers had investigated a "substantial amount of documentary and witness evidence".
However, they added, "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."
Speaking at a press conference on Friday afternoon, Sir Keir said his promise to resign was about integrity.
He said: "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 that those who make the law can't break the law. But we have to set the bar far higher than that.
"Our country is stuck in a dangerous rut. Everywhere you look, things are broken, and nothing gets fixed.
"People say to me, when they look at those running the country, they see a group of people totally detached from reality, whose words mean nothing, and who put their own interest first.
"Who could blame them for concluding that politics doesn't matter and doesn't work?
"This is not just about Boris Johnson. This feeling that politics has failed hasn't emerged in the last few months. It's been bubbling away for years.
"And people have completely lost faith that this can be changed. But politics can be a force for good the reason I made the promise that I did was to change their mind."
The Labour leader said his party would soon set out their plans to "give Britain the fresh start it needs."
He added: "And my challenge to the Tories is not who's your next leader going to be but give us the change we really need. Let's have a general election. Let's have a change of government, a fresh start for our country."
"We've been stuck in the middle of a cost of living crisis with a government that can't deliver, with a Prime Minister who is not fit to be Prime Minister - the conclusion at last of the Parliamentary Conservative Party - propped up by people all around him, who've known for months that he couldn't deliver.
"Of course, we need change, fundamental change. It's not just about the last few months either. We've had 12 years of stagnation 12 years of low growth so Britain deserves that fresh start."
Sir Keir defended calling for a vote of no confidence in Mr Johnson, even though the Prime Minister has already agreed to stand down.
The Labour leader said the Tory leader's plans to remain in office as a "caretaker" Prime Minister until the Conservative Party elected a new leader, was desperate.
"There's a world of difference between this situation and previous situations where a leader has stepped down.
"Take Theresa May, for example. There was a policy dispute within her party that in the end led to her resignation. But she stayed on.
"This Prime Minister, Boris Johnson, has been brought down on the issue of trust and integrity because his front bench didn't believe that when they were going out to do media rounds, they were being told the truth.
"That is a million miles from a policy dispute. You can't resign, saying the Prime Minister doesn't tell the truth. He's got no integrity he keeps sending me out to say things which aren't true, but I'll now serve him for two months because I think miraculously in the next two months, that's all going to change.
"That just doesn't make sense, I think it's materially different to other situations. I understand why Theresa May stayed on, this Prime Minister is desperately clinging on he should go and should go straight away."
Sir Keir also, once again, ruled out any form of coalition or deal with the SNP, saying he wanted to be Prime Minister for the whole of the UK.
"There is no basis for an alliance with a party who wants to break up the United Kingdom. I want to grow the economy. There's no basis for an alliance with a party that thinks the answer to growing the economy is to put a border between England and Scotland.
"So it's not just a numbers game. It's an in-principle position. There is no basis for an alliance under a Kier Starmer government between Labour and the SNP. Full stop."
At the Durham gathering, Labour had initially denied Ms Rayner was present, while Sir Keir said there had simply been a food break during the course of a long evening’s work.
However, the party later admitted Ms Rayner was present and a leaked memo showed the meal had been planned well in advance, and was due to last 80 minutes and form the conclusion to the work event.
At the time of the Durham gathering, non-essential retail and outdoor venues including pub gardens were open, but social distancing rules – which included a ban on indoor mixing between households – remained in place.
Speaking to the Daily Mail, Mr Fabricant, a loyal supporter of Boris Johnson, said he was surprised by the decision.
He said: "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."
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