AN investigation into the council expenses of former peer Lord Hanningfield has been dropped, police have confirmed.

The 71-year-old was arrested last September over his expenses while he was leader of Essex County Council.

It came after the Conservative, of West Hanningfield near Chelmsford, was jailed for nine months for falsely claiming �14,000 while in the House of Lords.

A City of London Police spokesman said: “Allegations of unauthorised expenditure against a 71-year-old man from Essex, originally made to Essex Police by Essex County Council, have been fully investigated by the City of London Police’s economic crime directorate, after being referred to them in December 2011.

“Following a full review of the evidence obtained from this investigation and consultation with the CPS, a decision has been made to take no further action regarding these allegations as there is insufficient evidence to justify any criminal charges in this case.

“The police investigation into this matter is now closed.”