MP Jim Devine: My receipts were false, but I didn't benefit

• The Livingston Labour MP Jim Devine, pictured yesterday at his West Lothian home, is facing criminal charges over his expenses claims. Picture: Ian Rutherford

He stands accused of using fake invoices to claim 3,240 for cleaning services in his second home between July 2008 and April 2009, as well as 5,500 for office stationery claimed last March.

The Labour MP for Livingston, who has already been deselected by his party, denies the two charges against him.

But last night, in an interview with Channel 4 News, he accepted the receipts he submitted for stationery were bogus and that the money was intended to help pay for staffing costs.

Mr Devine claimed he was given the go-ahead to do this by a Labour whip, and that moving money between parliamentary allowances was allowed.

He denied that he profited directly from any of the claims. "The false receipt would be if the 5,500 was going into my pocket," he said. "It was about moving money about in my accounts. In my innocence, I was told that was acceptable."

He insisted this type of accounting was normal practice in the union movement, and said: "The stationery was for paying for leaflets and moving money from one account to another. We had run out of money in the staffing account and had a lot of money in the communications account.

"We have four separate accounts – London living allowance, a staffing allowance, a communication budget and an office budget – and you can move money around these accounts.

"We were moving money from the communications budget to the staffing budget."

He went on: "I was advised by a whip that I could do this … an individual in the whip's (office] who said you could move money about like this. I was told that was acceptable. Nobody queried it."

Mr Devine, who earlier spoke of his astonishment at the bringing of criminal charges, denied he had committed fraud. He said: "The fraud and criminal activity I would suggest is where it is to my benefit. I did not financially benefit by these two receipts.

"I would argue that is not a lie – I would argue this was allowed at the time."

The Labour Party last night denied all knowledge of the alleged advice offered by a whip, and a Labour source said: "Mr Devine is the author of his own misfortune and must now live with the consequences."

The Livingston MP's admission came as the black cloud of expenses darkened yet further over Westminster, with criminal charges of false accounting brought against two other Labour MPs and one Tory peer.

All could be imprisoned if found guilty of the dishonesty accusations levelled against them by the Director of Public Prosecutions (DPP) Keir Starmer.

Elliot Morley, the Labour MP for Scunthorpe, will answer two charges relating to 30,000 of mortgage interest claims on a property in Lincolnshire between 2004 and 2007. The former environment minister is accused of knowingly claiming the payments even though the mortgage on the property had been paid off in full.

David Chaytor is charged with dishonestly claiming more than 18,000 in rent for properties owned by him and his mother, as well as submitting a false claim of 1,950 for IT services.

Prime Minister Gordon Brown said he was "very angry" about the allegations, which came 24 hours after a Commons review revealed MPs had claimed 11 million a year for second homes.

Meanwhile, Conservative front-bench peer Lord Hanningfield faces six charges relating to accusations he submitted overnight subsistence claims for his work in the Lords despite travelling to his home in Essex.

All four deny the accusations and are due to appear before City of Westminster Magistrates Court on 11 March, in proceedings that could lead to a trial likely to cast a long shadow over the general election campaign.

After the news broke, Lord Hanningfield, 69, also known as Paul White, resigned as the Tories' business spokesman in the Lords, and he had the party whip suspended pending the outcome of the trial.

Mr Starmer said the peer had knowingly claimed overnight expenses despite returning home to Chelmsford in Essex. Reports suggest he had claimed 99,970 in overnight "subsistence" since his elevation to the Lords in 1998.

Yesterday, he said he could justify all his claims and insisted the charges were the culmination of a "vindictive campaign" against him.

Another peer, Lord Clarke of Hampstead, was cleared by the DPP, after he found there was insufficient evidence to provide a realistic prospect of a conviction over allegations that the former Labour Party chairman had claimed up to 18,000 a year for overnight expenses costs, despite returning to his main home or staying with friends.

Mr Starmer confirmed one further parliamentarian was still under investigation by his prosecuting team. Reports suggested that could be Labour peer Baroness Uddin, who faced accusations she claimed 100,000 in allowances on a property in Maidstone, Kent, that was barely occupied.

Of the three accused Labour MPs, Mr Brown said: "We took steps some months ago to remove the right of these people to stand as candidates for the Labour Party.

"These are very serious criminal allegations. All criminal allegations have got to be investigated."

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