BURNLEY MP Kitty Ussher tonight resigned from the Government amid fresh allegations about her expenses – and announced she would stand down at the next election.

Mrs Ussher quit her junior post in the treasury, but insisted she had not abused the system despite claims she 'flipped' which was her main home to avoid paying capital gains tax.

She said she had resigned as she did not 'want to cause any embarrassment' to Prime Minister Gordon Brown.

Mrs Ussher revealed her decision not to stand in the next election was made sometime ago for family reasons, rather than the fresh expenses revelations.

She said her resignation was over allegations that she changed which property was designated as her main home to avoid capital gains tax.

Mrs Ussher did not pay capital gains tax as, shortly before the sale of the Burnley home in 2007, she changed her main residence to a London property.

Speaking to the Lancashire Telegraph tonight Mrs Ussher said what critics called 'flipping' had been done within the rules and following guidance from accountants.

She said: "I am stepping down from the Treasury and as an MP at the next election but the two decisions are not related.

"There has been no impropriety on my behalf but I was concerned that as a minister for tax in the Government it would reflect negatively if I stayed on.

"The decision to stand down as an MP was taken a long time ago and is for family reasons. Working hours do not fit in with my children and it is with great sadness that I have taken this decision. It breaks my heart to do it.

"I would have announced this before but did not want people to see it as linked to the Prime Minister and put undue pressure on him.”

The fresh revelations follow initial claims in the Daily Telegraph back in May that she claimed £40,000 expenses to renovate her London home, asking civil servants to 'pay me as much as you can'.

Mrs Ussher tonight announced her resignation from the post of Exchequer Secretary to the Treasury. She had been appointed to the role just 12 days ago in Gordon Brown's reshuffle, saying she was 'surprised' to be asked but 'glad to be part of the team to get us through the recession'.

But tonight she sent a letter of resignation to Mr Brown.

In the letter, she said she was leaving the Government "with the greatest regret" but would remain as MP for Burnley until the coming election, when she would stand down from Parliament "for family reasons".

Back in May, Mrs Ussher defended claiming £40,000 to renovate her Brixton home in London, saying the work made the property habitable for her family.

A letter to the Parliamentary fees office which was published by the Daily Telegraph revealed Ms Ussher had written to find out whether she could claim for ‘essential repairs’ under the MPs’ additional costs allowance (ACA).

She wrote that the Brixton ‘house was cheap to buy but required a lot of work’, before listing repairs she hoped to carry out, including a bathroom which did not “function” and “peeling” walls in the shower room, according to the newspaper.

She reported ‘strange plumbing’, ‘pipes that are not used’ and ‘odd electrics’, before inquiring if the ACA could cover the costs. She also asked for Artex to be replaced, claiming 'it counted as dilapidations in my book'.