An alleged fantasist known as Nick, gave five different accounts of VIP abuse to the police, but was still regarded as "credible and true", it has emerged, as a review recommends dropping the policy of automatically believing "victims".

Under the current rules, police forces must believe a person who makes a complaint of rape or sexual assault, in order to give victims the confidence to come forward after an attack.

But that policy is now expected to be dropped after a string of allegedly malicious complaints were made against high profile people including politicians and celebrities.

Scotland Yard's disastrous Operation Midland - which was launched when ‘Nick’ claimed a VIP paedophile ring had raped and murdered boys in the 1980s - eventually closed without a single arrest having been made.

The investigation, which cost £2.5 million, traduced the reputations of a number of public figures, including the former Prime Minister, Sir Edward Heath, the former Home Secretary, Lord Brittan, war hero, Lord Bramall and former Tory MP, Harvey Proctor.