Three Labour MPs accused of fiddling their expenses have been granted taxpayer-funded legal aid.

David Chaytor, Elliot Morley and Jim Devine are due to go on trial later this year accused of theft by false accounting. It is claimed they stole almost £60,000 in allowances through false mortgage applications, rent claims and invoices for services.

They could face up to seven years in jail if found guilty. The MPs, who will be tried separately, have brought together some of the country's most eminent barristers to fight their cases.

The cost of preparing their defence is likely to run into six figures, depending on the length of the trial. But it could spiral far higher as the men threaten to take their battle to have the case against them thrown out to the Supreme Court.

Barrister Julian Knowles said the defendants will claim to be protected by parliamentary privilege, covered in the 1689 Bill of Rights. There is now likely to be protracted legal argument over whether the men should face trial at all later this year.

The opening shots will be fired during a two-day hearing before trial judge Mr Justice Saunders at Southwark Crown Court from May 27.

Lord Hanningfield, who is accused of making false claims for travel allowances, has not made an application for legal aid.