The former head of a Tory research unit has been banned from standing as a party candidate at the 2015 general election, having been accused of using public money to fund a sex party.

Iain Corby is at the centre of allegations that he spent taxpayers’ money on hotel rooms that were used for a sex party involving male researchers and at least one MP at the 2011 Conservative Party conference.

Embarrassing messages sent by Mr Corby on the gay-networking app Grindr were published in the press last weekend.

The Policy Research Unit (PRU), which is paid to carry out research on behalf of Tory MPs, is alleged to have been used to book the rooms at Manchester’s Light ApartHotel, where the party took place.

The Independent Parliamentary Standards Authority (IPSA) has begun an investigation into the claims.

Mr Corby resigned at the end of last month as director of the PRU. At the time, it was said that he wanted to “return to the commercial world”.

The Independent claims that his name has been struck off the list of Conservative candidates, approved by Conservative Central Office.

The paper said senior sources had stated that Mr Corby had also been “banned” from reapplying.

It’s claimed Downing Street and Tory whips were made aware of complaints against Mr Corby before his resignation and the publication of images from him on Grindr.

Conservative MP Michael Fabricant went public last weekend to denounce claims that he was in “a feud” with Mr Corby

Mr Fabricant, sacked as Tory vice chairman last week, revealed he told party chiefs of concerns about the PRU’s “drinking culture” three years ago – but said no action was taken.

PinkNews has approached Conservative Central Office for comment.