New press regulator the Independent Press Standards Organisation (Ipso) was labelled a “sham” yesterday after its chairman admitted  that newspapers will be unlikely to face serious sanctions.

Chairman Sir Alan Moses said the body will come “armed with a slim, clear book of rules and not with an iron fist” when tackling complaints.

“Mistakes and errors of judgment will always occur,” he said in a speech to the Society of Editors.

And the former judge, who complained in September that Ipso’s “hopeless” budget would stymie proper investigations, reassured them that he intends to continue supporting “unruly” behaviour.

He said: “When Ipso was launched we were all told how different the regulatory regime would be now that there was power to fine up to £1 million or 1 per cent of annual turnover. And they said: ‘There you are … now you can show your mettle by fining someone £1m, that’s what you need.’

“You only have to say that to see how unlikely it is.”

Ipso replaces the Press Complaints Commission (PCC), which was scrapped amid accusations that it was “toothless” against newspaper malpractice.

However the new body’s statutes were drafted by right-wing media boss Paul Dacre — and Mr Moses’s comments have fuelled fears that Ipso will be no different to its predecessor. 

Press standards campaign Hacked Off labelled the watchdog a “sham” for ignoring Leveson phone hacking inquiry recommendations. A spokesman said: “Ipso is biased and unfair, just like the PCC. And just like the PCC it will allow the big newspapers to bully, lie and intrude with impunity.”

A majority of newspapers have signed up to Ipso, but the Guardian, Financial Times, Independent are among notable absentees.