Elliot Morley, the former environment minister, has become the 13th MP to step down in the wake of the expenses scandal.
Mr Morley, who claimed £16,000 over 18 months for a mortgage that did not exist, has confirmed that he will stand down at the next general election.
He had already been suspended by the Labour Party.
Scotland Yard is also considering whether to launch a criminal probe in the wake of his involvement in the MPs' expenses scandal exposed by The Daily Telegraph.
The Scunthorpe MP made his announcement after arranging a meeting with his local party association.
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