Earlier Keir Starmer had called for a police investigation into allegations that campaign funds were misused by the Fylde MP Mark Menzies, who was also suspended as a government trade envoy to Colombia, Chile, Peru and Argentina.
Lancashire police said that while no complaint had yet been made they were planning to talk to those involved after reports about the MP, who faces claims that he demanded thousands of pounds from an aide to pay off "bad people" in the middle of the night last December.
The Conservatives took action on Wednesday night after the allegations were made public in a report by the Times. Labour wrote to the Conservatives asking whether the party had referred the matter to the police.
The Tories have yet to involve the police and say they will decide what to do after concluding their own investigation. The chief whip, Simon Hart, passed the matter to his party HQ three months ago after being approached by what sources describe as a "whistleblower".
Menzies said in a statement: "I strongly dispute the allegations put to me. I have fully complied with all the rules for declarations. As there is an investigation ongoing I will not be commenting further."
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