Communities Secretary Hazel Blears is to pay £13,332 to the Inland Revenue, the sum she would have paid in capital gains tax when she sold a flat in London had she not classified it as a "main residence".

The move comes as MPs face growing scrutiny over their expense claims, following a series of embarrassing newspaper revelations.

She said "People feel incredibly angry about the whole system... and that's why I've taken a personal decision to send a cheque".