Sir Davies, who has been the conservative MP for Shipley since 2005, has neither confirmed nor denied the claims, but insisted he had done nothing illegal.

He told The Sun that he expects to lose on 4 July. He claimed his bet was “nobody’s business” and said: “What’s it got to do with you whether I did or didn’t. I hope to win. I’m busting a gut to win. I expect to lose.

“In the 2005 election, I busted a gut to win. I expected to lose. I had a bet on myself to lose in the 2005 election, and my bet went down the pan.”

He added: “And if anyone’s alleging I’ve done anything illegal, they’re very welcome to allege it, but I’m afraid I haven’t.”