'Phantom' council tax bills for MPs

Some have raked in thousands of pounds on "phantom" local authority bills, according to the Daily Telegraph.

The latest revelations came as Scotland Yard announced that some MPs and at least one peer were to be subjected to criminal inquiries following allegations that they had misused their expenses.

Among those over-claiming for council tax was Labour MP Eric Illsley who reportedly made a profit of more than £6,000 between 2004 and 2008. He admitted claiming a notional figure rather than the actual cost of the bill at a time when MPs did not have to provide receipts for any claims under £250.

Former minister Beverley Hughes was said to have profited by up to £2,000, Government whip Mark Tami by about £1,500 and ex-home secretary David Blunkett by £178. Tory frontbenchers David Willetts and Jeremy Hunt were reported to have over-claimed for council tax by about £500 each. Mr Willetts said it was possible he had "inadvertently" claimed for an 11th month while his council tax bills were divided into only 10.

The Metropolitan Police's inquiries are understood to be covering Labour MPs David Chaytor and Elliot Morley, both of whom claimed on their expenses for non-existent mortgages. Also thought to be under investigation is Baroness Uddin, who has been accused of claiming an empty Maidstone flat was her main residence so she could claim an allowance for peers who live outside the capital.

Claims have also emerged that MPs used their taxpayer-funded expenses to pay firms with which they were connected.

The News of the World accused Tory MP John Gummer of channelling thousands of pounds towards a company of which he is chairman. The former cabinet minister allegedly paid consultancy firm Sancroft £9,980 between 2004 and 2008, according to invoices released as part of the publication of MPs' expenses claims this week.

Despite being the company's founder and chairman, Mr Gummer claimed on his expenses at least 16 times for its services, including the use of laptops and the recruitment of a diary secretary who works out of Sancroft's offices. The senior Conservative has already come under fire for claiming £9,000 a year towards gardening work, including the removal of moles and jackdaw nests from his Suffolk property.

The paper also discovered that junior business minister Ian Lucas paid money to a firm of solicitors, Stevens Lucas, which he previously worked for and to which he remains a consultant. He claimed £176.25 in legal fees for the lease of his constituency office and £894.50 for the sale of a property.