Jack Straw today waded into the political storm over claims made by MP Daniel Kawczynski, pictured, that Shrewsbury’s Labour councillors were involved in postal fraud.

The Leader of the House said the Conservative member for Shrewsbury & Atcham could be reported to Westminster authorities for making the allegations in the House of Commons on Monday.

Mr Kawczynski said he had been told by constituents that Shrewsbury councillors who work for Royal Mail had been involved in fraudulent activities.

Because he made the comments in Parliament, where he is covered by a special privilege, he cannot be sued for slander.

Mr Straw’s comments came following a question from Tamworth Labour MP Brian Jenkins who asked whether it was right for MPs to make allegations using parliamentary privilege.

Mr Straw said: “I would advise if you haven’t done so to talk to the Clerk of the House or the Speaker about whether this is a matter that could be referred to the Committee of Privileges.”

The MP for Tamworth said to Mr Straw: “It cannot be right if members raise allegations against ordinary working people of this country and the use of this, the cowardly use of this act of privilege, only goes to detract from the status of every member of this chamber.”

Jon Tandy, Shrewsbury’s Labour prospective parliamentary candidate who is at the centre of the fraud claims row and who works for Royal Mail, welcomed Mr Straw’s intervention.

“I’m glad to see the House of Commons is now taking this story on board and not allowing someone to misuse their parliamentary privilege in this way,” he said.

Yesterday Mr Kawczynski said he had contacted police over the fraud claims.

Mr Kawczynski said he would not be repeating specific allegations outside Parliament, but had passed four letters to West Mercia Police containing allegations of fraud, some of them written on Communication Workers Union headed notepaper.

“These are serious concerns which have been raised with me, and the police are now investigating them,” he said.

But a spokeswoman for West Mercia Police today said the letters had not yet been received.

By Tom Warren