Conservative MP Nigel Waterson is threatening to sue Liberal Democrat parliamentary candidate Stephen Lloyd and the party's agent, Becky Carr, for libel after they described Mr Waterson as 'expenses scandal MP' on the front page of a Lib Dem-produced newspaper, pictured right, which has been circulated to 40,000 homes in Eastbourne.

Lawyers for Mr Waterson have sent letters to Mr Lloyd and Ms Carr less than three weeks before the long-awaited general election is expected to be called.
Mr Waterson said, "Regrettably we have become used to a stream of lies, personal attacks and smears peddled by the Liberal Democrats. However, their latest newspaper – referring to me as 'expenses scandal MP' – is wholly untrue and unacceptable.

"My solicitors advise me that this is plainly defamatory and actionable. They have therefore written to the Liberal Democrats, demanding that they issue a written apology and give an undertaking that they will make no further defamatory statements. They have also asked for a payment in an agreed sum to a charity of my choice, and legal costs."

"I am saddened that such action has been necessary. At the beginning of this year, I invited the other candidates to agree some simple principles for the campaign.

"These included a promise not to indulge in negative politics and not to engage in personal attacks on other candidates."
"Sadly, the Liberal Democrat campaign so far has consisted of little else but negative politics and personal attacks. But I will not have my personal integrity attacked in this way. The Liberal Democrats know full well that my expense claims have been approved by three independent investigations; and that I have not been asked to repay a penny."

"It is time to clean up local politics. The Liberal Democrats face a simple choice: to carry on as they are, and face a substantial damages bill in due course, or issue an apology in an agreed wording, and start talking about the issues that really concern the voters and the country."

In response, Lib Dem agent Ms Carr did not address the claim for libel but said, "People in Eastbourne have been scandalised by the Conservative MP's expenses claims on his large family home in Kent. Anyone reading the weekly letters in The Herald can see that. For the last four years local taxpayers have been paying the mortgage on his family home in Beckenham to the tune of £70,000.
"They've even paid to have his garage repainted. This is an expenses scandal."