A leading Conservative has resigned after a spat with a newly-elected MP over the offer of a second job.

The chairman of the Bexhill and Battle Conservative Association, Stephen Rowlinson, has reportedly resigned after a disagreement with MP Huw Merriman, who was elected earlier this month.

Mr Rowlinson claims he told Mr Merriman that taking up a position with the administrators of bankrupt financial services firm Lehman Brothers - on a one year contact worth £160,000 to the new MP - would be “damaging” to his career.

Mr Rowlinson then resigned when he said it had become clear to him the MP for Bexhill and Battle would not “change his mind”.

However, Mr Merriman MP said he had not taken the new job contract anyway.

The bankruptcy filing of Lehman Brothers was the largest in the history of the United States and followed a mass exodus of their clients and falling stock prices.

The collapse of the firm was instrumental in the global financial crisis.

Mr Merriman said while he had previously worked for the administrators, he had decided not to accept the new contract to focus on working as an MP.

Mr Rowlinson claims he had warned him the second job could be “extremely embarrassing” for the government due to the toxicity of the Lehman name and controversies over bankers’ salaries.

The MP said: “Prior to my election as MP for Bexhill and Battle constituency, I worked for the joint administrators of Lehman Brothers in Europe and led a team of lawyers who were unwinding the estate on behalf of the creditors.

“The creditors have been repaid in full and the joint administrators asked me if I could provide them with input on a new project to distribute the remaining surplus to creditors.

“Having now been elected as a Member of Parliament, and with the responsibilities to my constituents being my priority, I have concluded that I will not be able to assist the joint administrators.

“Serving as an MP is an enormous honour and is a role which I look forward to doing with all of my focus.”

BACKGROUND

BEFORE its collapse financial services firm Lehman Brothers was the fourth largest investment bank in America.

The firm filed for bankruptcy on September 15 2008 while holding more than $600 billion in assets. 

The impact of the news was felt around the world with sharp falls in share price.

Lehman Brothers had incurred billions of dollars of loses in the mortgage market. 

Huw Merriman, now MP for Bexhill and Battle, worked for the administrators of Lehman brothers in Europe while the firm’s estate was dissolved.