Lords in sleaze row will not lose peerages even if censured

London: Four Labour Lords accused of offering to amend legislation for money will not be stripped of their peerages even if they are censured by an official investigation.

There were calls on Sunday night for the law to be changed so that peers could be removed from the House of Lords if they were found guilty of breaking anti-corruption rules.

The four peers - Lord Truscott, Lord Taylor of Blackburn, Lord Moonie and Lord Snape - face a parliamentary inquiry into allegations that they pledged to amend laws in return for payments from lobbyists. They were secretly recorded by a newspaper apparently pledging to seek changes to proposed laws as paid consultants for a foreign businessman.

Senior MPs said the actions of the peers would amount to "corruption" if proven and Chris Huhne, the Liberal Democrat home affairs spokesman, called for the police to investigate the claims.

The public standards watchdog described the allegations as "serious" and threatened to intervene if necessary. However, despite a recent review of the system of investigating complaints against peers, the most severe punishment that can be imposed is to demand a public apology.

Even if a Lord is prosecuted and jailed, he is still free to return to the House upon release. One of the Lords implicated in the lobbying scandal told an undercover reporter that there was nothing that the parliamentary authorities could do "but jump up and down".

Two of the peers were alleged to have told undercover reporters that they had successfully altered legislation for other paying clients.

Baroness Royall of Blaisdon, the Leader of the Lords, ordered an urgent inquiry into the allegations. "For the moment these are allegations and I want to ensure that they are properly investigated," she said.

"Once we have seen clearly what the issues are, then we will see whether or not action is necessary. "If it is true, it is a very grim picture, but we do have to look into the details very carefully. Clearly it looks very serious but I am concerned that everybody's side of the story should be heard."

Lady Royall will also conduct her own investigation into the allegations. She would be under pressure to remove the Labour whip and expel the peers involved from the party if the claims were upheld.

The Labour peers will now be investigated by a sub-committee on Lords' interests. A police investigation has not been ruled out. The Lords involved strenuously deny any wrongdoing.