Prime Minister David Cameron has said he accepts Baroness Warsi needs to provide answers over allegations about her expenses.
At a Number 10 Jubilee party, he said:
– Prime Minister David Cameron
I am satisfied that there are questions that have been raised and there are questions which have to be answered. I am satisfied that will happen.
A Labour MP has asked the police to launch an inquiry into whether the Conservative Party co-chairman Baroness Warsi broke the law over her expenses.
Karl Turner has written to the City of London Police to request they examine whether she claimed for accommodation while staying at a friend's house rent free.
ITV News' Senior Political Correspondent Chris Ship talks to James Mates about the latest pressure on the beleaguered cabinet minister.
In his letter to the City of London Police, Karl Turner wrote:
– Labour MP Karl Turner
It appears that Baroness Warsi may have claimed for expenses which she did not in fact incur, and that a criminal offence may therefore have been committed.
I am writing to ask that an inquiry be undertaken into whether Baroness Warsi or her aide Naweed Khan have broken the law.
Labour has called for a criminal inquiry into the expenses of Conservative Party co-chairman Baroness Warsi as the Prime Minister acknowledged she had questions to answer.
The MP Karl Turner has written to the City of London Police to request they examine whether she claimed for accommodation while staying at a friend's house rent free.
Baroness Warsi has already asked Lords Commissioner for Standards Paul Kernaghan to investigate.
The move came amid a slew of fresh newspaper allegations against the under-fire politician, including an alleged failure to declare business interests and questions over foreign visits.
Lady Warsi issued a fresh denial of wrongdoing, insisting that she had acted within the rules at all times
In a statement, Baroness Warsi said: "My shareholdings and, before becoming a minister, directorships have at all material times been disclosed as required on the Register of Lords' Interests and to the Cabinet Office and on the register of ministerial interests."
Conservative co-chairman Baroness Warsi has denied failing to register business interests as she faced fresh allegations of breaching House of Lords rules.
The peer, whose expenses claims are being examined by a watchdog, insisted she had stuck by the rules for declaring shareholdings.
She was responding to a Sunday Telegraph report that she failed to declare a controlling stake in a spice manufacturing firm with the House of Lords authorities.
The newspaper said February accounts for Rupert's Recipes showed Baroness Warsi held 60% of its shares - sufficient to require a public declaration.