Former Sandwell MP Peter Snape was today caught up in allegations that he and three other peers agreed to help lobbyists in return for payments of thousands of pounds.

Lord Snape told the Express & Star: “I categorically deny any wrongdoing, and I shall be consulting my legal representatives today.”

Reporters on the Sunday Times posing as lobbyists approached the former West Bromwich East MP and other peers to seek help in trying to amend legislation on behalf of business clients.

The paper claims that Lord Snape was willing to help to try to amend the Supplementary Business Rates Bill in return for an annual fee of up to £24,000.

However, the Express & Star understands that no such fee was mentioned, and that Lord Snape told the reporters that House of Lords rules prevented him from initiating or amending any legislation.

The Liberal Democrats have called for a police inquiry into the allegations, and the Tory chief whip in the Lords, Lord Strathclyde, said: “These are very shocking allegations.

Colleagues said they would be astonished if Lord Snape were to be found guilty of misconduct because of his integrity, experience and knowledge of the rules.