"It was 3am, Fylde MP Mark Menzies told me - It's life or death Katie! They're bad people"

A Tory activist from St Annes says she was woken by a frantic phone call from Fylde MP Mark Menzies demanding money in the early hours of the morning to pay off “bad people”.

Lifelong Tory activist Katie Fieldhouse, 78, has decided to speak publicly for the first time today, telling the BBC she is "appalled" by the party's response.

She recounted the conversation she says she had with Mr Menzies in December last year after he allegedly rang her at 3.15am and asked for £5,000 to pay off ‘bad people’ who had allegedly locked him in a flat.

From her home in St Anne's, she told the BBC: "He said I've got in with some bad people and they've got me locked in a flat and they won't let me out until I pay them.

"I said 'I beg your pardon'? He said 'it's life or death Katie, I need £5,000 from the account'."

Ms Fieldhouse said she refused to pay the sum - which was later raised to £6,500 - but claimed another activist used their personal savings to give him the money.

According to the Times, the activist paid the ‘ransom’ and was later reimbursed from campaign donations.

A source told the paper Mr Menzies offered to repay the funds but claimed local Tories controlling the campaign account said repayment was unnecessary.

It is understood the Labour Party has referred the incident to Lancashire Police and is calling on the force to investigate the allegations against Mr Menzies.

The Conservative Party has suspended Mr Menzies over claims he misused funds and said an internal investigation is now under way - five months after they were made aware of the incident.

The Times also reported Mr Menzies used £14,000 from campaign funds to pay his personal medical bills - in several payments stretching back four years. In a statement to the Times, Mr Menzies said: "I strongly dispute the allegations put to me. I have fully complied with all the rules for declarations.”

'Brushed under the carpet'

Ms Fieldhouse told the BBC she raised her concerns with the Conservative Chief Whip Simon Hart after discussing money with Mr Menzies again.

Although the Tory party started an investigation, Ms Fieldhouse was left "appalled" by the inaction.

The Times reported that the scandal was reported to the Mr Hart back in January. Since her report "nothing happened", Ms Fieldhouse said. "I am not having this brushed under the carpet,” she said, as she called on Mr Menzies to resign.

"I watch people go for a walk in this quiet area. Do I want them to go out and vote for a man who gets himself locked up and needs money to get him out? No, I do not.”