Labour MPs and Tory peer vow to fight expenses charges

Three Labour MPs and a Conservative peer said today they would defend themselves against charges of false accounting arising from their claims for parliamentary expenses.

Director of Public Prosecutions Keir Starmer (pictured) announced this morning that charges under the Theft Act were being brought against Scunthorpe MP and former agriculture minister Elliot Morley, Bury North MP David Chaytor, and Livingston's Jim Devine, as well as Conservative peer Lord Hanningfield.

Lord Hanningfield, who is leader of Essex County Council, was suspended from the parliamentary Conservative Party and resigned his position as a frontbench business spokesman in the House of Lords.

The charges, dating back to 2004, carry a maximum sentence of seven years in prison.

Lord Hanningfield said he was "extremely disappointed" to be charged and insisted all his expenses claims were made in good faith.

In a statement, the three Labour MPs said: "We are clearly extremely disappointed that the DPP has decided to instigate proceedings against us.

"We totally refute any charges that we have committed an offence and we will defend our position robustly."

The MPs said they believed their cases should have been dealt with by the Parliamentary Standards Commissioner, adding: "We are confident of our position and have been advised by eminent QCs."

The four parliamentarians are due to appear before City of Westminster Magistrates Court on March 11 - less than a month before the expected start of the general election campaign.

Mr Morley is alleged to have dishonestly claimed a total of £30,428 more than he was entitled to in second home expenses on a house in Winterton, near Scunthorpe, between 2004 and 2007 - including 18 months after the mortgage on the property was paid off.

Mr Chaytor faces charges that he claimed almost £13,000 in rent in 2005 and 2006 on a London flat which he owned, as well as £5,425 to rent a property in Lancashire owned by his mother. He is also alleged to have dishonestly claimed £1,950 for IT services using false invoices in May 2006.

Mr Devine is alleged to have claimed £3,240 for cleaning services and £5,505 for stationery using false invoices in 2008 and 2009.

And Lord Hanningfield faces six charges of false accounting, relating to claims for overnight allowances from the House of Lords between March 2006 and May 2009, when records allegedly show he was in fact driven to his home near Chelmsford.

In a statement released following the DPP's announcement, Lord Hanningfield said: "I totally refute the charges and will vigorously defend myself against them. I have never claimed more in expenses than I have spent in the course of my duties."

He said he was standing down as Tory business spokesman to avoid any "embarrassment or distraction" to the party.

Today's charges follow a nine-month investigation which saw police hand files over on six parliamentarians shortly before Christmas.

Mr Starmer said the Crown Prosecution Service was continuing to consider one further case, while insufficient evidence had been found to bring charges against Labour peer Lord Clarke of Hampstead.

Speaking at the CPS's London headquarters, Mr Starmer said the six files passed to the CPS by Scotland Yard had been reviewed "very carefully by senior prosecuting lawyers in the CPS, assisted where necessary by an external and highly experienced QC".

He added: "Lawyers representing those who have been charged have raised with us the question of parliamentary privilege.

"We have considered that question and concluded that the applicability and extent of any parliamentary privilege claimed should be tested in court."

The charges follow yesterday's damning verdict on the "deeply flawed" House of Commons allowance system by Sir Thomas Legg, who ordered around 390 MPs and former MPs to repay a total of £1.12 million.

A Labour spokesman said Mr Morley, Mr Chaytor and Mr Devine had already been barred from standing as Labour candidates at the election.

The party had taken "the toughest action on expenses of any political party", he added.

"The Labour Government has swept away the old, discredited expenses system and introduced a new transparent regime," said the spokesman.

"The Labour Party has zero tolerance for criminal behaviour and will take the strongest possible disciplinary action against any party member found guilty of breaking the law."

A Conservative Party spokesman said: "Lord Hanningfield has today resigned his position in the House of Lords as shadow business spokesman.

"David Cameron has also asked Lord Strathclyde, Leader of the Opposition in the House of Lords, to suspend the Conservative whip with immediate effect.

"The Conservative Party has led the way in dealing with the MPs expenses scandal. We were the first to publish the Right To Know form, the first to require the front bench to put their expenses online and the only party to have carried out a scrutiny of all our MPs expenses - leading to the paying back of over £250,000."

Matthew Elliott, chief executive of the TaxPayers' Alliance pressure group, said: "It is excellent news that the CPS have decided to bring charges against these politicians.

"It is essential that MPs face justice, just like any normal person who had behaved like this. The tax-paying public wants to see justice done, and it is right that MPs aren't able to simply wave repayment cheques and walk away from this.

"It has taken a long time to get to this stage and the priority now must be for trials to be held as soon as possible. Anyone found guilty of breaking the law in their expenses claims should be punished severely for their breach of trust."

The Alliance had been preparing a legal case to bring private prosecutions if the CPS decided not to press charges.

Scottish National Party MSP for Livingston Angela Constance said: "Enough is enough for Jim Devine. The people of Livingston will welcome the decision to test these charges in court.

"Instead of claiming he has been victimised, it is time for Mr Devine to face up to his charges and answer his critics in court.

"Despite being in disgrace, Devine remains a Labour MP and a member of the Labour Party. That is no longer good enough. Today is the day Labour must make clear if he is still an acceptable member of the Labour Party."

Justice Secretary Jack Straw said he would not comment on the "possible outcome or consequences" of today's announcement by the DPP.

But he said: "There is no doubt that the expenses scandal has of course been damaging to the reputation of individual MPs but also to the reputation of politics and Parliament.

"It's because of that that Gordon Brown, and I on his behalf, have established the Independent Parliamentary Standards Authority.

"That will have complete control over the setting and administration and regulation of MPs' salaries and pensions, as well as expenses.

"Never again will we be in the position where we are setting our own allowances and, I'm afraid, not administering them properly either."