Scotland Yard launch inquiry with panel of senior detectives and prosecutors; new claims emerge over council tax payments.
MPs face criminal investigations into allegations that they abused their expenses - as still more revelations emerge.
Scotland Yard announced today it was launching full inquiries into several MPs and peers, understood to include Labour MPs David Chaytor and Elliot Morley, both of whom claimed for non-existent mortgages.
Also thought to be under investigation is Baroness Uddin, who has been accused of claiming an empty Maidstone flat was her main residence so that she could claim an allowance for peers who live outside the capital. Her family home is said to be in east London.
Hours after the police announced they were stepping up their inquiries, it emerged that MPs had claimed on their expenses for council tax that they have not paid, with some said to have raked in thousands of pounds on "phantom" local authority bills, according to a newspaper.
The Metropolitan Police said a joint assessment panel of senior detectives and prosecutors had decided full inquiries were necessary into allegations that expenses were misused, expected to focus on politicians accused of deliberately misleading the authorities or claiming "phantom" mortgages.
The investigation will be conducted by officers from the Met's Economic and Specialist Crime Command, overseen by Temporary Assistant Commissioner Janet Williams.
Officers believe there is only a realistic chance of prosecution in cases where it can be proved individuals misled the Commons Fees Office.
Bury North MP Mr Chaytor said he would pay back £13,000 after admitting an "unforgivable error" in continuing to submit £1,175 monthly bills for a paid-off loan.
Mr Morley was suspended from the Parliamentary Labour Party after admitting a similar £16,000 claim and referring himself to the Westminster sleaze watchdog.
Parliamentary standards inquiries into both are on hold while the police continue to consider their cases.
Mr Chaytor told BBC News: "I've said all along that I would cooperate fully with an investigation. I want to explain my case, explain what happened.
"I've acknowledged that there is an error here and I want to clear my name."
Mr Morley said: "I have always made it clear I would be more than happy to fully co-operate with any inquiry and I would welcome the opportunity to put my side of the story."
Meanwhile, the Daily Telegraph newspapr said that dozens of MPs' claims for council tax on their second homes had been in excess of town halls' published rates by house band.
Labour MP Eric Illsley was accused of over-claiming by more than £6,000 between 2004 and 2008. Former minister Beverley Hughes was said to have profited by up to £2,000, Government whip Mark Tami by about £1,500 and ex-home secretary David Blunkett by £178.
Mr Tami said last night: "I am going to look into whether I have over-claimed and if I have then clearly I will pay back any over-claim."
Tory frontbenchers David Willetts and Jeremy Hunt were reported to have over-claimed for council tax by about £500 each.
Mr Willetts said it was possible that he had "inadvertently" claimed for an 11th month while his council tax bills were divided into only 10 and that he was "still checking the position".
"If I have inadvertently made incorrect claims I will of course pay any money back," he added
Source:The times
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