Mr Bailey – who was running to replace Sadiq Khan in the 2021 contest – had previously been pictured at the event but was not seen in the most recent footage.
Speaking to reporters in Westminster on Monday, Mr Bailey said he had never seen the video and that the event “obviously turned into something once I left and I didn’t realise that”.
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Asked if he thought the footage was acceptable, he replied: “It isn’t – I’m not saying it is for a second.”
And pressed on whether the British public deserved an apology, he said: “Unreservedly – I apologised then and I apologise now.
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“It was a staff team that were given to me, but the buck stops with me.”
The footage, obtained by The Mirror, showed Mr Bailey’s staff partying while Tier 2 restrictions were in place.
The Mirror previously released a photo from the party, which was subsequently investigated by police. No further action was taken at the time due to lack of evidence.
However, the police have said they are “considering” the newly-revealed video.
COVID rules at the time said there should be no mixing of households indoors, apart from support bubbles, while only six people were allowed to meet – socially distanced – outside.
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0:35
Leaked footage of rule-breaking bash
In total, 24 people were at the party at Tory campaign HQ – more than the number allowed at a wake.
In the video, one man is heard asking: “Are you filming this?”, while another responds: “It’s for party, erm, party use.”
Meanwhile, Mr Mallet, who helped run Zac Goldsmith’s campaign to be London mayor in 2016, is seen in the video laughing with colleagues, and a voice is then heard saying: “What do you think of this?”
Asked whether Mr Bailey should give up his peerage in light of the video of his staff, he replied: “That will be for others to decide – for me, it has been a great privilege and I would like to keep doing work for the rest of the country and London as well.”
On Sophy Ridge on Sunday, Mr Gove was repeatedly pressed on whether it was appropriate for Mr Bailey and Mr Mallet to have been given honours.
The cabinet minister said the current rules – that a resigning prime minister can honour who they want – should not be interfered with.
He added that a debate on changing the rules was “well worth having”, but that “procedure” should be followed for the moment and those who broke restrictions should still be given gongs.
Israeli strikes killed at least 85 Palestinians across the Gaza Strip overnight and into Thursday, according to the Hamas-run health ministry.
Five UN staff members have also been killed, according to the head of the UNRWA.
It comes as fighting in the enclave has restarted in recent days.
Philippe Lazzarini, head of UNRWA, the United Nations Palestinian relief agency, said on Thursday: “In the past few days, another five UNRWA staff have been confirmed killed, bringing the death toll to 284.
“They were teachers, doctors and nurses: serving the most vulnerable.”
He added he feared “the worst is yet to come”.
“Under our daily watch, people in Gaza are again and again going through their worst nightmare,” he said in a statement.
“An endless unleashing of the most inhumane ordeals.”
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Speaking in Parliament, Foreign Secretary David Lammy said the UK government opposed the resumption of Israel’s hostilities and added that a British national was among the wounded when a UN compound was struck on Wednesday.
Israel has previously said it only targets militants and blames civilian deaths on Hamas because it operates in densely populated areas.
It denied previous reports it had targeted a UN compound.
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1:53
Briton wounded in Israeli strike
Israel resumes strikes
On Tuesday, Israel resumed heavy airstrikes on the enclave killing more than 400 people, bringing to a halt the ceasefire that had paused fighting in the 17-month war.
The militant group wanted to move onto phase two to negotiate Israel’s permanent withdrawal from Gaza, the release of hostages in exchange for more prisoners and an eventual end to the war.
The tone has changed totally. It’s a remarkable turnaround from the Oval Office meltdown to the perfect phone call.
President Trump is wholly transactional. His desire for give and take far outweighs any ideological instincts. He has no particular alignment to Ukraine or, for that matter, to Russia.
He just wants a deal. Peace would stop the killing as he has said repeatedly. It would also allow for deals which can benefit America: recouping the taxpayer money spent on Ukraine and reconnecting the American economy with Russia.
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7:26
Will Trump turn on Putin?
But trumping all that is his legacy and his image. He wants to be seen as the peacemaker president.
Since the Oval Office moment, Ukraine’s President Zelenskyy seems now to have recognised all that.
Ukraine’s approach towards Trump has changed. Zelenskyy is now playing his game: transactionalism.
The minerals deal hasn’t dissolved. The indications I am getting is that it’s essentially been upgraded and broadened to a wider scope: fuller economic cooperation.
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Zelenskyy needs to encourage America deep into his country economically. Has he bought into the idea that a US economic footprint amounts to a key part of a security guarantee?
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The old adage is: “If you are not at the table, you are on the menu.” That’s too true with President Trump.
Zelenskyy now feels like he’s at the table and I am told he doesn’t feel coerced.
The challenges remain huge though: he doesn’t trust Putin. That’s what he tried to tell President Trump in the Oval Office. The performance that day proved to him that Trump is inclined to trust Putin.
Zelenskyy must use transactionalism to draw an impatient Trump in.
President Trump is in a hurry for a deal. He’s inclined to accept wholly disingenuous commitments from Russia, or as one source put it to me: “Trump has a high tolerance for bullshit…”
US President Donald Trump has had a “very good” call with Volodymyr Zelenskyy, the White House says, during which US ownership of Ukraine’s energy network was discussed to help protect it.
Mr Trump also agreed to “help locate” additional air defence support in Europe after a request from the Ukrainian leader, a statement about the one-hour phone call said.
Further talks will take place in Jeddah, Saudi Arabia, in the coming days, and the US will continue intelligence sharing with Ukraine, White House press secretary Karoline Leavitt told reporters.
Mr Trump also agreed to work to ensure missing Ukrainian children are returned home and both parties agreed to a temporary 30-day ceasefire involving attacks against energy facilities, with the US president saying the US “could be very helpful in running those plants with its electricity and utility expertise”, Ms Leavitt said.
Secretary of state Marco Rubio also issued a statement about the call saying that “President Trump also discussed Ukraine’s electrical supply and nuclear power plants.
“He said that the United States could be very helpful in running those plants with its electricity and utility expertise. American ownership of those plants would be the best protection for that infrastructure and support for Ukrainian energy infrastructure.”
The White House statement added that Mr Trump and Mr Zelenskyy also reviewed the situation in Kursk and agreed to share information closely.
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The presidents instructed their teams to move ahead with the details of implementing a partial ceasefire, with discussions to include expanding any ceasefire to the Black Sea.
Could US nuclear power takeover replace the minerals deal?
By David Blevins, Sky correspondent, in Washington DC
The readout of the call from President Zelenskyy was conciliatory, repeatedly thanking Donald Trump for military support and for his peace efforts.
In agreeing to a partial ceasefire, he held out the prospect of US investment in Ukrainian power – perhaps deeming that more of a security guarantee than the minerals deal.
“American ownership of those plants would be the best protection for that infrastructure and support for Ukrainian energy infrastructure,” the Marco Rubio and Mike Waltz readout of Trump-Zelenskyy call said.
Trump agreed to continue sharing intelligence but when Zelenskyy asked for additional air defence, he said he’d see what was available in Europe.
That’s a vague response from the US president as he seeks to keep both Ukraine and Putin on board.
Those ambiguous words and the change in tone are both indicative of the sensitive point they’ve reached days before fresh negotiations in Saudi Arabia.
“We have never been closer to peace,” Ms Leavitt added.
In comments later on Wednesday, Mr Zelenskyy said that Mr Trump understands that Ukraine will not recognise occupied land as Russian, and that he would like the US president to visit Ukraine – adding that “it would be helpful for Trump in his peace efforts”.
In an earlier statement, President Zelenskyy said the two leaders had “a positive, very substantive and frank conversation”.
Mr Zelenskyy echoed much of Mr Trump’s statement about what was decided, and said later that he “felt no pressure” from the US president.
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3:20
Trump and Zelenskyy ‘on track’
“We agreed that Ukraine and the United States should continue working together to achieve a real end to the war and lasting peace. We believe that together with America, with President Trump, and under American leadership, lasting peace can be achieved this year,” Mr Zelenskyy said
He added that Ukraine would “continue working to make this happen”.
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“I stressed that Ukrainians want peace, which is why Ukraine accepted the proposal for an unconditional ceasefire,” he said. “I highlighted the importance of President Trump’s concept of peace through strength. We agreed to maintain constant contact, including at the highest level and through our teams.”
In an earlier post on Truth Social, Mr Trump said the “very good” phone call lasted around one hour.
“Much of the discussion was based on the call made yesterday with President Putin in order to align both Russia and Ukraine in terms of their requests and needs,” Mr Trump said.
“We are very much on track,” he added.
The call marks the first time Mr Trump and Mr Zelenskyy have spoken since the disastrous confrontation in the White House last month.
Mr Zelenskyy travelled to Washington expecting to sign a critical minerals deal but left early after he and Trump clashed in front of the world’s cameras.
On Tuesday, Mr Trump and Vladimir Putin held a phone call lasting about an hour and a half in which the Russian leader rejected a full 30-day ceasefire.
He agreed to not attack Ukraine’s energy infrastructure for 30 days. The two countries also swapped 175 prisoners each earlier this morning.