North West MEP, Sir Robert Atkins, who lives in Garstang, said he would be taking legal action in the wake of a story published in the News of the World on Sunday.

The article gave details of how the Conservative member pays his wife, Lady Dulcie, more than £30,000 a year as his secretary.

And the newspaper also said Sir Robert paid his son James £2,513.23 a month in 2002.

However, Sir Robert is furious the story was placed alongside an investigation into "greedy Brit MEP" Tom Wise, who the newspaper claims bragged to an undercover reporter how he could rake in thousands of pounds every week in dodgy allowances and travel claims.

Sir Robert was the MP for Preston North between 1979 and 1983, before taking up the role in South Ribble for 14 years.

He said: "Any allegations of impropriety – which is how it's portrayed – are denied absolutely and entirely, and I'm taking legal action against the News of the World."

Lady Dulcie, who is also a member of Wyre Council and Garstang Town Council, runs Sir Robert's constituency office in Garstang.

Yesterday father-of-two Sir Robert, who was knighted in 1997, issued a statement on his personal website.

He said: "My wife Dulcie was a qualified secretary when I met her in 1968.

"For 30 years, during my time as an MP, Minister and MEP, she has been my full-time secretary, paid the market rate.

"This has always been openly declared and well-known.

"She has also been active in the community for many years, as is the case with many thousands of local councillors who give of their time, over and above their normal working environment.

"Dulcie is no different, except perhaps that she works during too much of her "leisure" time!

"My son worked full-time in Brussels for a period after leaving university and was paid at the same – if not slightly lower rate – as other parliamentary assistants of his age and experience.

"He was head-hunted away on a much higher salary and ceased working for me in 2004.

"These employments were legally contracted and registered with the parliamentary authorities, who have approved and audited them each year."

A News of the World spokesman said it would not be commenting on the matter.