A Tory MP has been suspended by his party after undercover footage showed him offering to ministers for a fake gambling company.

Blackpool South MP Scott Benton was stripped of the party whip after an undercover investigation for The Times found he was prepared to leak market sensitive information to a fake investment fund and ask parliamentary questions on its behalf. This would be a breach of parliamentary rules.

Benton referred himself to the Parliamentary Commissioner for Standards. A spokesperson for Tory chief whip Simon Hart said Benton “has had the Conservative Party Whip suspended whilst an investigation is ongoing”.

Prime Minister Rishi Sunak had come under pressure to withdraw the whip from the Tory MP. Labour said the Sunak’s failure to act before Benton referred himself to the Commissioner showed his “weakness”.

Benton was caught on camera telling undercover reporters posing as investors how he was willing to take actions which would break Parliament’s lobbying rules. MPs are not allowed to advocate a particular matter in the House or raise it with ministers in return for payment. They are also forbidden from serving as a paid parliamentary adviser or consultant or guiding firms on ways to influence Parliament.

Benton described how he could support the fund by attempting to water down proposed gambling reforms in a meeting in early March. He believed the fund was set up by an Indian businessman looking to make investments in the UK betting and gaming sector.

It comes as the Government is carrying out a major review of gambling laws, mulling stricter regulations that could affect operators’ profits. Benton offered a “guarantee” to provide a copy of an upcoming gambling White Paper to the business at least two days before publication, potentially allowing it to benefit from market sensitive information.

He also said he could table parliamentary written questions and that he had previously done so on behalf of another company. Benton said he could offer “the direct ear of a minister who is actually going to make these decisions” and speak to them outside the Commons voting lobby. The MP agreed with a fee proposed by the reporters in the range of £2,000 to £4,000 a month for two days’ work.

A Labour spokesperson said: “Yet again we see Rishi Sunak’s weakness. Instead of acting right away, he waited until Scott Benton referred himself to the Commissioner. Rishi Sunak’s lack of mandate means he’s too nervous to act against his own troops. No wonder Tory MPs think they can get away with blue murder.”

In a statement, Benton said: “Last month I was approached by a purported company offering me an expert advisory role. I met with two individuals claiming to represent the company to find out what this role entailed. After this meeting, I was asked to forward my CV and some other personal details. I did not do so as I was concerned that what was being asked of me was not within Parliamentary rules.

“I contacted the Commons Registrar and the Parliamentary Standards Commissioner who clarified these rules for me and had no further contact with the company. I did this before being made aware that the company did not exist and the individuals claiming to represent it were journalists.”

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