8.45pm update: David Cameron has paid a warm tribute to Anthony Steen in accepting his decision to stand down, thanking the the Totnes MP for his "many years of public service" and making special mention of his long-standing "desire and ability to stand up for the underdog". Click the letter on the right to enlarge.
7pm update: Anthony Steen has confirmed that he is standing down at the next general election.
Speaking exclusively to ConservativeHome, he said:
"The real issue is who can fix the country, and I have become a distraction, so have decided that I won't stand again. I don't want to risk the party losing the seat, so it is in the best interests of the party that I go.
"There has been no pressure from my association; they have been marvellous: members have been very put out by the Daily Telegraph coverage.
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Yesterday Sleaford and North Hykeham MP and former Cabinet Minister Douglas Hogg announced he would be standing down at the next general election in the wake of the furore over his expenses claims for - among other things - moat cleaning.
We speculated that Anthony Steen, the MP for Totnes, could be next - and this afternoon he looks set to make such an announcement.
Sky News is reporting that Mr Steen is expected to announce that he will be retiring at the next general election, citing "authoritative sources".
It was Mr Steen's claims for the upkeep of his Devon home and garden which had attracted controversy, with him telling the Western Morning News that he would be willing to pay back 10% of the £88,000 or so that he had claimed for work including "guarding shrubs from rabbits, inspecting trees, redecorating, moving boulders, fencing off fields, overhauling a private sewage system and sowing grass seed".
Mr Steen has been MP for his Devon constituency (formerly known as South Hams) since 1983, having been the last Conservative MP to represent a Liverpool constituency: he represented Liverpool Wavertree from 1974 until 1983, at which election the constituency was abolished.
The Totnes seat has a notional majority of 2,693 for the next election after minor boundary changes and will presumably select a new candidate in the summer.
Jonathan Isaby