Boris Johnson is pictured campaigning with a Tory councillor who has been linked to an alleged furlough fraud.
The PM hit the election trail in North Tyneside with Lewis Bartoli on Monday.
But the Mirror can reveal HM Revenue and Customs are aware of allegations that a staffer continued to work for North Tyneside Conservative Federation – “under” Mr Bartoli – while being furloughed during the pandemic.
In a letter to a complainant, seen by the Mirror, Northumbria Police say they have recorded a crime of fraud following an accusation “in relation” to the Coronavirus Job Retention Scheme but will not be investigating this further.
Chief Superintendent Mark Hall says it is “alleged the North Tyneside Conservative Federation under … Lewis Bartoli and [another person] and others have claimed money from the CJRS for an employee”.
Mr Bartoli yesterday told the Mirror he was unaware of a referral to HMRC regarding furlough fraud and has not been contacted by any bodies.
He added: “We absolutely deny all the allegations.”