FORMER Labour minister Elliot Morley has been suspended today after it emerged he had claimed £16,000 of taxpayers money for a mortgage he had already paid off.

Mr Morley, a former Agriculture Minister under Tony Blair, has been suspended by the Parliamentary Labour Party.

Prime Minister Gordon Brown said: ‘‘Where standards are transgressed and mistakes are made, we have got to take action.

‘‘That is why today, we have suspended from the Parliamentary Labour Party Elliot Morley because of the allegations, which are serious, which have been made against him.’’ The PM continued: ‘‘Where there is irregularity now, it has got to be dealt with immediately.

‘‘Where standards have been transgressed and the evidence has been shown to be there, action has got to be taken.

‘‘Where disciplinary action is necessary it will, and will immediately, be taken.’’ He went on: ‘‘If there are any other disciplinary cases where we have to take action, we will take action immediately.

‘‘But I think what people want to see is a system that is reformed, politics seen to be serving the public interest, people recognising that as a country we depend on trust in our political system and trust in the people who actually are in offices of authority and influence, and they have a duty to show that that trust is deserved.’’’ The Scunthorpe MP insisted the claims had been a mistake.

Minutes before Mr Morley’s suspension was announced, Labour’s Chief Whip Nick Brown confirmed that his case would be discussed by the party’s ruling National Executive Committee in a meeting next Tuesday, sparking speculation that he may be expelled from the party altogether.

The Chief Whip spoke to the Scunthorpe MP last night, when the allegations about his expenses first emerged in the Daily Telegraph, and again this morning, when Mr Morley informed him that he had referred himself to the Commons sleaze watchdog John Lyon, the Parliamentary Standards Commissioner.

Nick Brown has also spoken today to Labour MP Fabian Hamilton, who claimed thousands of pounds in second home allowances for his family home in Leeds while listing his mother’s property in London as his main residence.

The Chief Whip said that he would work on the basis of ‘‘check the facts first and then decide how to act’’.

And he told Sky News: ‘‘The interests of the Labour Party are very clear.

‘‘We come into public service to do the right thing by the people who elect us to represent them.

‘‘If there has been wrong-doing it has to be put right as quickly as possible and if it is very serious there will be a very serious response.’’ Asked if Labour MPs found to have made excessive claims may be ordered to pay the money back, Nick Brown said: ‘‘Each case is different, but there are cases where I think it is appropriate - even when people have behaved within the rules - that they repay money to the public purse.

‘‘It is not just the literal wording of the rules. It is the spirit as well.

‘‘The National Executive is taking this very seriously indeed and is very protective of the party’s reputation.’’ He confirmed that he would report to the NEC next Tuesday on the expenses allegations, and would also meet party officials on Wednesday. He is expected to meet the Prime Minister later today on his return from Derbyshire.