A LABOUR MP who claimed £22,500 of taxpayers' money for treating dry rot at a house in Southampton has announced that she will stand down at the next election.

Margaret Moran's expenses claims provoked widespread public anger as her designated home in St Denys is 100 miles from her constituency and the House of Commons.

A Labour disciplinary panel had been due to decide whether the Luton South MP could stand for the party again.

TV personality Esther Rantzen, who lives in the New Forest, had also indicated she would challenge Ms Moran. Today she said she might still stand despite Ms Moran's announcement.

In a statement, Ms Moran said: "It is with great sadness that I have today informed the General Secretary of the Labour Party, following discussion with my family, that I intend to stand down as MP for Luton South at the next general election.

"However, it is very important that I make it absolutely clear that I have done nothing wrong or dishonest in relation to my claim for expenses and have at all times acted on advice from the House of Commons Fees Office in relation to my family home in Southampton.

"It has been a privilege to serve the residents of Luton. I will work hard for my constituents until I step down as an MP at the next general election but the understandable anger in the media and among the public over the issue of my Parliamentary expenses has had a bruising effect upon my friends, my family and my health and it is for this reason that I have decided to stand down."

Ms Moran has been the MP for Luton South since 1997.