Cameron: Full confidence in Huhne

More than a week after the story first surfaced in the Press, Mr Huhne finally broke his silence to insist that the allegations – which date back to 2003 – were “simply incorrect”.

He was forced to speak out after Essex Police disclosed that they were considering whether to launch a criminal investigation in response to a formal complaint by the Labour MP Simon Danczuk.

“All I want to say is that these allegations are simply incorrect,” Mr Huhne told the BBC.

“They’ve been made before and they’ve been shown to be untrue, and I very much welcome the referral to the police as it will draw a line under the matter.

“I don’t want to say anything more than that. I think the police can get to the bottom of this.”

Earlier No 10 had been forced to take the unusual step of saying that Mr Huhne denied all the allegations against him, after the Liberal Democrat Minister had refused to comment on the story.

Asked at the morning briefing for political journalists whether Mr Cameron had full confidence in Mr Huhne, the Prime Minister’s spokesman said: “Yes, he does.”

The spokesman also indicated that even if police did launch an investigation, Mr Huhne could retain his Cabinet post while it was carried out.

“It has certainly happened in the past,” the spokesman said.

The latest developments left Mr Huhne looking uncomfortably reliant on the Prime Minister’s support, just two weeks after he angrily confronted Mr Cameron in Cabinet over the tactics of the No campaign in the AV referendum.

His move was widely seen as an attempt to position himself as a potential rival to Nick Clegg, amid continuing Lib Dem unpopularity for their support for the coalition, and there will be those at Westminster who will not be sorry to see his present difficulties.

The story originally broke more than a week ago when Mr Huhne’s ex-wife, Vicky Pryce, was reported by The Sunday Times as confirming that he had persuaded another person to say they were driving his car when it was caught speeding eight years ago.

At the time, Mr Huhne – who was then an MEP – was facing the prospect of a driving ban if he clocked up any more points which would have made it difficult for him to get around as he sought a parliamentary seat.

The pressure intensified over the weekend when The Sunday Times and the Mail on Sunday published details of what they said was a telephone conversation between Mr Huhne and another person discussing the case.

Mr Huhne is quoted as saying: “There is no evidence for this story unless you give it some legs by saying something.

“The last thing you want is a half-baked story saying you’ve taken points for me.”

Press reports yesterday said that the conversation was with Ms Pryce and that she was the person who accepted his penalty points. Mr Huhne left her last year for a younger woman.

Essex Police said that a senior detective from the Kent and Essex Serious Crime Directorate had been appointed to establish whether there were grounds for a criminal investigation.

Mr Cameron and Mr Huhne both attended a meeting of the National Security Council on Libya yesterday morning.

The Prime Minister’s spokesman would not be drawn on whether they discussed the claims against Mr Huhne, although Mr Cameron – speaking later following a speech on the NHS – said simply: “He denies the allegations.”

However Lib Dem party president Tim Farron rallied round his beleaguered colleague, saying he saw no reason for Mr Huhne to stand down, even if the police decided to mount a full criminal investigation.