MP Andrew MacKinlay has accepted a public apology and libel damages from the BBC over allegations he proposed an amendment to a Government motion on MPs’ expenses so he would benefit financially.

The Labour MP for Thurrock was suing the broadcaster over allegations made on BBC2’s flagship Newsnight programme.

He was claiming damages of £100,000 over a broadcast which went out on April 30, and also seeking aggravated damages, and an injunction preventing repetition of the allegations at the centre of his claim.

Yesterday at London’s High Court, Mr MacKinlay accepted an apology along with “substantial”, but undisclosed, libel damages and the payment of his legal costs.

Mr Justice David Eady was told by BBC lawyer, Robert Brosgill, they accepted Mr Mackinlay had not stood to gain financially.

Mr Brosgill said: “The BBC accepts the allegation should not have been published and offers its apologies to Mr MacKinlay.”

In a prepared statement, Mr MacKinlay’s solicitor said: “The programme alleged Mr MacKinlay had proposed an amendment to a Government motion on MPs’ expenses so he would benefit financially and, in that way, had acted in an unprincipled and selfish way and abused his position as an MP.

“This was untrue.

“Mr MacKinlay did not stand to benefit financially.

“Mr MacKinlay was deeply hurt and embarrassed by the broadcast.

“While such an allegation would at any time be extremely damaging to Mr MacKinlay’s reputation – both politically and personally – it was doubly so in the then febrile climate concerning MPs’ expenses.”