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Once the allegations of the the claims surfaced an investigation was launched by the council.
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Sounds like another media lie to me. The tory group on the council would obviously investigate this, but it is no business of the council itself what he told his former employers so far as I know & trust.
At least he has some latent honour. He could've kept on as an Independent (not UKIP) with entitlement to all the allowances for the next 4 years but he quit the council immediately. There are plenty (eg Mote) who should have preceded his example and quit. And there will be plenty in the future who should follow his example but won't. So good on him for doing the right thing so quickly.
Working in a supermarket depot for 5 years since leaving school (or whatever the exact details are) probably aren't the most conducive circumstances for maintaining excellent mental health.