BURY North MP David Chaytor has been barred from fighting the next general election after a Labour Party internal inquiry.

The news came just hours after Mr Chaytor announced that he was bringing the curtain down on his 12-year Parliamentary career.

He said he was standing down at the next election in the wake of the furore surrounding his Parliamentary expenses.

He was one of four Labour MPs to be banned. A spokesman for the Labour Party said on Tuesday evening: “After considering in detail the cases of David Chaytor, Ian Gibson, Margaret Moran and Elliot Morley and speaking to those who wished to be interviewed, the Labour Party’s special NEC endorsements panel today unanimously recommended rescinding each of their endorsements as Labour candidates.

“They will not be able to stand as Labour candidates in any constituency at the next general election.

“The organisation committee of the Labour Party’s NEC agreed with the panel’s recommendations and new prospective parliamentary candidates will be selected to join Labour’s hardworking councillors in Bury, Norwich, Scunthorpe and Luton.”

The “ban” came just hours after Mr Chaytor announced he was standing down and would not fight the next general election. It is alleged that Mr Chaytor wrongly claimed £12,925 in mortgage insurance payments on a London flat between 2005 and 2006.

In a statement to the Bury Times on Tuesday morning, Mr Chaytor, aged 59, said: “It is with great sadness that I announce today that I will not seek re-election as the MP for Bury North at the next general election. This follows discussions with colleagues and local party officials over the weekend and other senior officials within the Labour Party.

“After fighting five general elections, I deeply regret that I will not be a candidate in the election that will determine Britain’s future for the next generation. However, I know I am taking the right decision at the right time.”

Mr Chaytor captured the Bury North seat from the Conservatives in 1997.Before the Labour party announcement, he said: “ “It has been a great privilege to serve the people of Bury North during the last 12 years. I could not have done this without the support and dedication of many people, notably my hard working office staff, my election agent and party workers and countless friends and supporters across the constituency.”

He said he would devote his immediate future to addressing Daily Telegraph allegations surrounding the mortgage interest payments.

Last month the newspaper claimed that between September, 2005, and August, 2006, the MP claimed £1,175 a month for mortgage interest on a Westminster flat. According to the Telegraph, Land Registry records showed the mortgage on the flat had been paid off in January, 2004.

The newspaper also stated that since 2004, Mr Chaytor had claimed for five different properties, allegedly “flipping” his designated homes between London, Yorkshire and Bury. He was subsequently suspended from the Parliamentary Labour Party.

This week, he told the Bury Times: “During the next few months my priority must be to explain my errors following allegations over the use of Parliamentary allowances. This will be time-consuming and stressful. I have referred my case to the Parliamentary Commissioner for Standards and will co-operate fully with his inquiry.

“In the months ahead I intend to carry out my constituency and Parliamentary duties conscientiously and to the best of my ability.

“However, I will not be able to commit myself to my usual constituency campaigning during this period. Therefore, it is only fair to my constituents, to my party and to my family that we quickly start the process of selecting a new candidate to fight for Labour in Bury North.”

Mr Martin Hayes, chairman of the Bury North Constituency Labour Party, paid tribute to Mr Chaytor’s work as MP for Bury North but looked to the future. He said: It is now our intention to move forward and select a candidate as quickly as possible to join our hard-working Labour councillors and party members in winning the fight for Bury’s future.”

Bury South Labour colleague Ivan Lewis, who entered Parliament for the first time with Mr Chaytor in 1997, commented: "It's a sad day for David, for David's family and many friends in Bury and beyond. He has done the right thing in the best interests of constituents and the local party. I hope he will now have the chance to clear his name of any wrongdoing.