UKIP found itself in more hot water yesterday after a leaked European Parliament audit suggested it had misappropriated almost half a million euros from EU coffers in election expenses.

The external audit, obtained by Sky News, said spending on polling in key Ukip target seats in Westminster elections and ahead of the EU referendum broke rules requiring that the money be used for EU business and not in domestic campaigns.

If the EU Bureau upholds its findings at a meeting next Monday, the Alliance for Direct Democracy in Europe (ADDE) could be forced to pay back €150,000.