Today's Telegraph leads with more allegations about George Galloway's links to Saddam Hussein's regime in Baghdad.

The paper carries details of a memo, allegedly from the deposed Iraqi leader, in which he says that his regime cannot afford to pay the backbencher any more money.

Galloway spent yesterday giving a series of media interviews to vehemently deny receiving any funds from Baghdad.

"This is a pile of black propaganda, intelligence hocus-pocus and the Daily Telegraph have either been a party to it or they have been hoodwinked by it. But either way, they will answer for it in front of the British courts," he said.

One long serving Labour MP told today's Telegraph that if the "allegations are right then I doubt there will be a single member of the House of Commons who will be surprised".

While the Labour Party announced that it will be conducting its own investigation into the claims, today's Times says that the attorney general, Lord Goldsmith, is considering action against the MP for misuse of charity funds.

Today's papers devote acres of coverage to the story.

Details of the MP's £250,000 villa in Portugal, from where he conducted his defence yesterday, feature prominently.