KITTY Ussher should stand down now in the wake of her expenses storm, her political rivals in Burnley have said.

Council leader Coun Gordon Birtwistle has said her actions are making a mockery of Burnley’s reputation in Parliament and has called for a by-election.

But supporters believe that her immediate resignation would not be in the best interests of her constituents and she should stay on as the town’s MP.

Mrs Ussher’s office said she would not be making any more statements after earlier telling the Lancashire Telegraph she was standing down ‘for family reasons’ and to spare the Prime Minister Gordon Brown embarrassment.

But in a statement released by her office in Victoria Street yesterday, her party bosses insisted she would continue to work hard for her constituents.

A Burnley Labour Party spokesman said: “Kitty would like to make it clear that she remains dedicated to her constituents, and will continue to give the town the same high level of service that she has in the past, and will continue to do so up until the General Election.”

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

Just 13 days ago Mrs Ussher returned to Government as Exchequer Secretary but, as a minister responsible for tax, she felt her position was untenable in the light of the latest revelations about her living status.

For a single month, when she sold her Burnley home in 2007, she changed her main residence to her property in Brixton, avoiding paying between £9,750 and £16,800 in capital gains tax.

Liberal Democrat and Conservative leaders across the borough have said the MP should step down with immediate effect, which would trigger a hotly-contested by-election.

Council leader Coun Gordon Birtwistle, the Lib Dems candidate, said: “These shenanigans are making a mockery of Burnley’s reputation in Parliament.

“We need a by-election immediately to clear the air and to allow Burnley to have a new MP who will stand up for the town in parliament and be listened to on the issues that matter.”

Richard Ali, the Tory prospective parliamentary candidate, added: “Kitty Ussher cannot simply stand down from her ministerial job and then continue to draw her salary until Gordon Brown calls this overdue election.

“She owes the people of Burnley the opportunity to decide whether they wish her to represent them – not the other way round.

“Our MP must do the right thing and resign as MP immediately.”

Last Friday, the Labour Party in Burnley had met to reaffirm Mrs Ussher as their choice for the 2010 polls.

Coun Julie Cooper said she was “really saddened” by the MP’s decision and believed she had acted in the best interests of the party.

The councillor confirmed Mrs Ussher had been reselected as the Labour candidate for Burnley at a Daneshouse meeting.

She added: “We were discussing strategy for the next election with Kitty in a very amicable atmosphere. There was no question of her resigning.

“It has been her choice and no pressure has been put on her by Burnley Labour Party. We have not been unhappy with Kitty. What she has done was within the rules.”

Former county councillor Tony Marty, who lost his seat at County Hall in the wake of the expenses scandal, said he still believed Mrs Ussher was the best candidate for the Burnley seat.

He added: “I can understand what Kitty Ussher has done, and understand the problems she would have had in her position. Perhaps it was not appropriate but it was within the law.”

Coun Jonathan Gilbert, a senior Conservative borough councillor, said: “It was a matter of going before she was pushed.

“It just goes to show how completely out of touch she, and Burnley Labour Party, is. How on earth can someone represent us from London?

“She needs to go and let the people of Burnley decide who should represent us.”

In May, the Daily Telegraph revealed Mrs Ussher had set out a wish-list of improvements for her Victorian house in a letter to the Commons authorities as part of her expenses claim.

On the cover sheet of her letter, Ms Ussher is said to have scrawled: “I am aware this takes us over our limit – please pay as much as you are able!”

“Most of the ceilings have Artex coverings,” she wrote.

“It could be a matter of taste, but this counts as ‘dilapidations’ in my book!

The MP also caused controversy in Burnley earlier this year when the Lancashire Telegraph revealed that she was planning to school her children in London, rather than East Lancashire, and was switching her designated first home as a result.

Janet Waterworth, 70, of Church Street, Haslingden, said: “I think Kitty Ussher should quit now. She has been found out and any normal person would have to go.”

Francesca Beale, of Kibble Bank, Burnley, said: “I don’t think MPs should have two homes. They should just have the one. She might as well go now because she will just get into more trouble.”

Les Ford, 53, of Kirkstall Drive, Barnoldswick, said: “It is ridiculous spending money like that. I have come across her myself and I don’t think she’s done a lot for Burnley.”

Jack Riley, 75, of Cardwell Street, Padiham, said: “I don’t think she should quit now. She was voted in for a full term and in any other business contracts are honoured.”

Carol Emmenegger, 60, of Carr Hill Road, Barrowford, said: “She has played the system and done us out of taxpayers’ money. But if lots of MPs resign, that is not what the country needs.”

Louise Horsman, 30, of Mason Street, Colne, said: “I think it is all completely wrong. Kitty Ussher needs to go now. And we need to get someone who cares about the town.”

Iblal Razaq, 24, of Leyland Road, Burnley, said: “She should quit now. She comes from the same lot that invaded Iraq and she’s certainly not done a good job for Burnley.”

Bernard Wright, 64, of Cobden Street, Burnley, said: “She has done nothing for Burnley. She should resign now because if I had done what she did when I worked, I would have been sacked.”