Blackpool South MP Scott Benton has lost an appeal against a proposed suspension from the House of Commons after he was caught in a lobbying sting.

The move paves the way for a fresh by-election headache for the Conservatives, who have lost a record amount of seats this parliament.

Mr Benton was suspended from the Tory parliamentary party last April after suggesting to an undercover reporter at The Times that he would be willing to break lobbying rules for money.

A subsequent investigation by the standards committee found he had committed a “very serious breach” of the rules and recommended a 35-day suspension from the Commons.

Mr Benton denied wrongdoing and appealed the suspension to the Independent Expert Panel (IEP), the body that sits above the Parliamentary Standards Committee.

However in a ruling today, the IEP said they “found no substance” in his arguments and dismissed the appeal.

Now that it has been upheld, MPs will vote on the punishment and if passed, this will trigger a recall petition that will result in a by-election if 10% of constituents vote for it.

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However Labour said he should “do the decent thing and resign” now.

Jonathan Ashworth, the shadow paymaster general, said: “Scott Benton should do the decent thing and resign, saving the people of Blackpool South a lengthy recall petition that would leave them without the representation they deserve.

“This is yet another by-election caused by Tory scandal. Britain deserves better than this carousel of Conservative chaos.

“Labour’s Chris Webb is Blackpool born and bred, and ready to deliver a fresh start for Blackpool South.”

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Mr Benton was elected as the Tory MP for Blackpool South in 2019, and has a majority of just 3,690. It had been a Labour seat since 1997 – but was Conservative before that.

Labour has overturned five-figure majorities in recent by-elections, including Kingswood and Wellingborough on Friday.

Mr Benton appealed his suspension on a number of grounds, including that the process of investigating him was materially flawed and the 35-day suspension was “unreasonable and disproportionate”.

But the IEP said there had been “no procedural flaw” in the process and his arguments against the recomended sanction was “erroneous”.

The report concluded: “Taking all these matters into account, we are satisfied that there is no substance in the Appellant’s grounds.

“Essentially, the Appellant simply disagrees with the sanction determined. The first stage of the appeal process has not been met. The sanction imposed was neither unreasonable nor disproportionate.”

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The standards committee had highlighted aggravating factors in their decision about Mr Benton – including him providing an “incomplete and incorrect picture of what had transpired”.

They also noted that it was a “repeat offence, or indication that the offence was part of a pattern of behaviour”.

Mr Benton met undercover reporters from The Times who were posing as employees of a fake lobbying company.

The chair of the all-party parliamentary group for betting and gaming suggested he would be happy to be paid between £2,000 and £4,000 a month to help the fake company – complete with a logo, website and office addresses in London and Chennai in India.

There are strict rules that prevent MPs from carrying out paid lobbying or advising how to influence parliament.

Mr Benton ultimately did not accept any financial payment arising from the meeting.

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