Banbury MP Tony Baldry, who is at the centre of a new sleaze row involving a £5,000 loan, today declared he never intended to mislead anyone, writes Stephen Deal.

The Conservative MP is at the centre of a Parliamentary inquiry after admitting he received the money from a City solicitor in the run-up to the 1997 General Election.

The loan was not declared in the register of members' interests or referred to civil servants at the time.

Mr Baldry is removing himself from the Commons while the Parliamentary Commissioner for Standards examines the circumstances, but intends to continue working as a constituency MP. He has also confirmed he will attend a crucial constituency reselection meeting tomorrow.

It is the latest row to hit the Tory Party, which is still reeling from the Lord Archer scandal and controversy surrounding treasurer Michael Ashcroft.

Mr Baldry, an agriculture minister at the time the loan was made, told the Oxford Mail: "I have always complied with the various codes and conditions.

"These are matters for the relevant authorities of the House to consider. I have at no time considered myself to have done anything wrong. "I am keen that these matters are fully investigated. It must be a matter for the House to see if I have breached any rules. I will accept any rulings that they make."

The MP received the money from Sarosh Zaiwalla, a leading City solicitor, early in 1997.

Mr Baldry told The Sunday Telegraph that he needed financial help at the time following his divorce.

He told the paper: "This was a personal loan without interest. I didn't mention it to my department - I didn't believe it had to be registered."

Details of the loan are also expected to be passed to Tory leader William Hague and the matter may be referred to the party's ethics committee.

Story date: Monday 06 December

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