LABOUR MP David Chaytor is facing a criminal investigation after claiming expenses on a “phantom” mortgage.

The Bury North MP is one of a small number of ministers and peers at the centre of an inquiry by the Metropolitan Police.

A joint assessment panel of senior detectives and prosecutors has decided full inquiries are necessary into allegations that expenses were misused.

Mr Chaytor claimed towards the cost of a non-existent mortgage. He said he would pay back £13,000 after admitting an “unforgivable error” in continuing to submit £1,175 monthly bills for a paid-off loan.

There will be huge pressure on the officers involved after criticism that police inquiries into Westminster affairs have repeatedly failed to lead to prosecutions.

The investigation will be conducted by officers from the Met’s Economic and Specialist Crime Command, overseen by Temporary Assistant Commisioner Janet Williams.

It is understood the joint panel of experts will continue to consider a small number of other individuals. None of the MPs under scrutiny have been named by Scotland Yard.

A Metropolitan Police spokesman said: “After consideration by the joint Metropolitan Police and Crown Prosecution Service assessment panel, the Met has decided to launch an investigation into the alleged misuse of expenses by a small number of MPs and peers.”

Officers believe there is only a realistic chance of prosecution in cases where it can be proved individuals misled Parliament’s Fees Office.