Peer Lord Paul suspended over expenses

The Chancellor of Wolverhampton University was today suspended from the House of Lords for four months over his expenses claims.

The university today refused to comment on Lord Paul's future after the ruling was approved by peers.

Lord Paul, a steel magnate and one of Britain's wealthiest men, lived in London but designated a one-bedroom flat in an Oxfordshire hotel he owned as his main home and claimed travel expenses.

The House of Lords Privileges and Conduct Committee branded his actions as "utterly unreasonable".

Lord Paul, who is chairman of Caparo Group which has bases in Bilston, Willenhall, West Bromwich and Oldbury, has already returned £41,982.

He is one of three peers given lengthy suspensions today.

Baroness Uddin and crossbencher Lord Bhatia have also been suspended.

Lady Uddin was suspended until the end of the parliamentary session in 2012 and told to repay £125,349.10.

Lord Bhatia was sidelined for eight months and has already repaid more than £27,000.

An initial investigation concluded Lord Paul "did not act in good faith" in his home designations, and said "no reasonable person could hold Lord Paul's understanding of 'main residence' in relation to the scheme".

In a statement after the results of the inquiry were published, Lord Paul said, with the benefit of hindsight he made claims he should not have made.

But he added he had never tried to claim anything which he did not believe he was honestly entitled to claim at the time.

Wolverhampton University spokeswoman Vickie Warren refused to comment.