Cameron: MP's resignation was right

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The Conservative leader insisted Mr Wilshire had decided for himself not to stand again at the next general election - but warned that he may still have to re-pay taxpayers' cash.

The MP for Spelthorne, in Surrey, has been accused of paying more than £100,000 of taxpayer-funded office allowances into a company which he jointly owned with his wife.

He has referred himself to the Parliamentary Standards Commissioner, John Lyon, but insists he will be cleared of any wrongdoing.

Amid reports that Mr Wilshire was pressured by the Tory high command into announcing his retirement on Thursday night, Mr Cameron said: "It's a decision that he made and I think he made the right decision."

Speaking outside his west London home, the Tory leader made clear he expected Mr Wilshire to comply with any potential demands by Mr Lyon for the re-payment of money.

"The Parliamentary Commissioner for Standards will now be looking at all the arrangements that were put in place and if money has to be paid back, money should be paid back," Mr Cameron said.

Mr Wilshire said that the investigation would cause distress to his family and friends and harm Tory chances of victory in the election expected in the spring.

He added: "In the circumstances I have reluctantly concluded that it is sensible for me not to seek re-election next year."