Expenses clash after peer escapes charges

The Director of Public Prosecutions Keir Starmer said the wording of the guidelines issued by the House authorities had presented prosecutors with a “very real difficulty” in bringing a case.

However the Clerk of the Parliaments Michael Pownall – the most senior official in the upper House – insisted last night the guidance was intended for purely internal use and did not relate to any possible breach of the criminal law.

He said the Lords would now be reopening their own inquiry into Lady Uddin’s expenses. The investigation was originally suspended last year while Scotland Yard carried out its investigation.

The peer faces allegations that she claimed tens of thousands of pounds in allowances for staying in London on Lords business, after designating a flat in Maidstone, Kent, as her main home, even though she rarely visited it.

Announcing the decision not to bring charges, Mr Starmer said there was no definition in either legislation or the House of Lords expenses scheme itself of a peer’s “only or main residence”.

Earlier Lady Uddin expressed relief that the threat of prosecution had been lifted in a statement outside the house in Shadwell, east London where, it is alleged, she actually stays for much of her time.

“I am relieved this ordeal has finally come to an end and I only wish now to say thank you to everyone who supported me through a very difficult time and I now wish to return back to my professional life,” she said.

Mr Starmer said in the course of the Scotland Yard investigation, evidence had been obtained from her neighbours in Maidstone and companies supplying utility services, such as water, gas and electricity.

However, lawyers at the Crown Prosecution Service had concluded it was still not sufficient to bring charges.