The first major shots of the Streatham election campaign have been fired, with the “enormously wealthy” Lib Dem candidate accused of attempting to buy a parliamentary seat.

Retiring Labour MP Keith Hill told the House of Commons last Wednesday it was “extraordinary and frankly undemocratic" that Chris Nicholson, who as a KPMG partner recently banked some £800,000 in bonuses, was able to outspend the MP in communication to constituents.

Mr Nicholson has donated some £283,494 in the past three years to the Liberal Democrat party, receiving much of the money back in funding for his election campaign.

Mr Hill said the amount Mr Nicholson spent on communications was 10 times his budget, and 15 times that of the Labour candidate Chuka Umunna.

He said: “What we are seeing here is the attempted purchase of a parliamentary seat."

But Mr Nicholson accused Mr Hill of setting up a smokescreen for himself after using the MP's communication allowance for “pro-Labour propaganda”.

The fees office told Mr Hill not to use a Labour Party email address on newsletters sent out to oonsituents.

He said funds spent by Lambeth Council on "further propaganda" meant he was being outspent by the rival political party, adding: “These are wild allegations made because Mr Hill realises Labour is under threat.”