The Fylde MP has resigned from the Conservative Party and will leave not stand at the next General Election.
Mark Menzies will step down after being accused of misusing political donations to cover his medical expenses and pay off “bad people” who had locked him in a flat in December, allegations made in a national newspaper.
An investigation cleared Mr Menzies of misuse of funds, but said his behaviour fell below the required standards and may have breached the Nolan principles of public life.
He had been suspended from the Conservative party while an investigation took place.
In a statement, Mr Menzies said: "It has been an enormous privilege representing the people of Fylde since 2010.
"Due to the pressures on myself and my elderly mother, I have decided to resign from the Conservative Party and will not stand at the forthcoming general election."
Mr Menzies will sit as an Independent MP until then.

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