Three Labour MPs and a Conservative peer will be charged by police over their expense claims, it was announced today.

MPs Elliot Morley, David Chaytor, and Jim Devine and peer Lord Hanningford will all face multiple charges, Director of Public Prosecutions Keir Starmer QC revealed this morning.

Lord Hanningford later announced that he was resigning as leader of Essex County Council.

Announcing the charges under the Theft Act, Mr Starmer said that one further case was still being investigated, while there was insufficient evidence to bring charges against Labour peer Lord Clarke of Hampstead.

Mr Morley — the former Agriculture Minister and Labour MP for Scunthorpe — faces two counts under the Theft Act 1968 of dishonestly claiming expenses.

The first count alleges that between April 2004 and February 2006, Mr Morley dishonestly claimed mortgage expenses of £14,428 for a house in Winterton, Lincolnshire.

The second count alleges that between March 2006 and November 2007 Mr Morley dishonestly claimed mortgage expenses of £16,000 for the same property when there was no longer a mortgage on that property.

Mr Chaytor, MP for Bury North, faces three charges under section 17 of the Theft Act 1968 for false accounting.

The first count alleges that in May 2006 Mr Chaytor dishonestly claimed £1,950 for computer services by using false invoices.

The second count alleges that between September 2005 and September 2006 Mr Chaytor dishonestly claimed £12,925 for renting a property in Regency Street, London, when he was in fact its owner.

The third charge alleges that between September 2007 and January 2008 Mr Chaytor dishonestly claimed £5,425, purportedly for renting a property in Bury, Lancashire, from his mother.

Livingstone MP Mr Devine faces two charges under section 17 of the Theft Act 1968 for false accounting.

The first count alleges that between July 2008 and April 2009 Mr Devine dishonestly claimed £3,240 for cleaning services using false invoices.

The second count alleges that in March 2009 Mr Devine dishonestly claimed £5,505 for stationery using false invoices.

Moments after the charges were read out Mr Devine said: "I've just heard what the allegation is. I can't believe I have been treated in this way.

"I referred myself to the police and they've been through every single one of my receipts.

"Other people have paid money back. If there's a problem, and I don't think there is one, why wasn't I given the opportunity to pay it back?"

Mr Devine added: "I don't see how they can investigate without having questioned people related to this."

Asked about the prospect of facing a trial, he said: "I've just heard this, I'm devastated by this news.

"I know, from where I'm standing, I have no case to answer."

Conservative Peer Lord Hanningfield faces six charges under section 17 of the Theft Act 1968 for false accounting.

The charges allege that between March 2006 and May 2009, he dishonestly submitted claims for expenses to which he knew he was not entitled.

The allegations focus on numerous claims for overnight expenses for staying in London when records show he was driven home and did not stay in the capital.

Today's announcements by the CPS follow yesterday's damning verdict on MPs' expenses by sleazebuster Sir Thomas Legg, who audited all claims made by MPs in recent years.

He condemned the system as "deeply flawed".

Hundreds of MPs were ordered to repay a total of £1.12million.