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12:16pm Friday 12th March 2010 in
Labour peer Baroness Uddin will not face prosecution following a Scotland Yard investigation into her claims for parliamentary allowances.
The decision came after specialist legal experts spent weeks examining a Metropolitan Police file of evidence against her.
The peer faced allegations that she claimed tens of thousands of pounds in allowances for a flat she rarely used.
But Director of Public Prosecutions Keir Starmer said there was a "very real difficulty" in interpreting the definition of "only or main" residence for peers.
She said she was "relieved" that her ordeal had finally ended, adding: "I only wish now to say thank you to everyone who supported me through a very difficult time."
Lady Uddin could still be disciplined by the Lords authorities if they find she breached guidelines for allowances.
An inquiry opened in July was put on hold pending the police investigation, but could now be referred to a committee that examines Lords' interests.
Baroness Uddin faced allegations that she dishonestly claimed cash for overnight stays in London as, although she nominated a flat in Maidstone, Kent, as her main residence, her home was in east London. Mr Starmer said the definition of "only or main residence" under the House of Lords' expenses scheme was "critical" to any possible criminal proceedings. But he said the phrase was not defined in the scheme itself or in any legislation, leaving prosecutors with a problem.
Matthew Elliott, chief executive of the TaxPayers' Alliance campaign group, said: "It is intensely disappointing that the CPS have decided not to fully test the case against Baroness Uddin in court. It isn't good enough for them just to shrug their shoulders and sweep these serious allegations under the carpet.
"The weakness of the House of Lords authorities is no excuse to allow people to get away with ripping off the taxpayer. Public faith in Parliament has already been shattered by the greed of people like Baroness Uddin, and there is a severe danger that the reputation of the CPS and the criminal justice system will go the same way if they simply drop such serious cases."
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