Boris Johnson’s refurb of his Downing Street flat will be formally investigated.

The Electoral Commission said it was satisfied there were ‘reasonable grounds’ to suspect an offence may have occurred in the controversial makeover.

‘We will therefore continue this work as a formal investigation to establish whether this is the case,’ the political spending watchdog said.

Downing Street said the renovation costs of Mr Johnson’s living quarters, beyond those provided for by the £30,000 annual allowance, had been ‘met by the Prime Minister personally’, adding: ‘Conservative Party funds are not being used for this.’

However, this does not rule out the existence of a donation or loan arrangement, the Guardian reports, while Labour has demanded a formal investigation into how the work was funded.

The Daily Mail alleged Mr Johnson – who earns £150,000 a year as PM – was becoming alarmed at the escalating bill in February last year, as the coronavirus crisis was unfolding.

He is said to have raged to aides: ‘The cost is totally out of control – she’s buying gold wallpaper!’

It’s believed the PM’s partner Carrie Symonds hired upmarket interior designer, Lulu Lytle, whose Soane Britain company sells ‘Yellow Gold’ and ‘Old Gold’ wallpaper.

When the aides asked Mr Johnson much the upgrades were costing, he reportedly replied: ‘Tens and tens of thousands – I can’t afford it.’

A source also told the Mail that his chief of staff Dan Rosenfield felt the refurbishment was a ‘crazy arrangement’ and a ‘mess’.

The PM has faced a flurry of questions over how the revamp was paid for following a fallout with former aide Dominic Cummings.

The former de facto chief of staff, who quit his post last year, said Mr Johnson wanted donors to ‘secretly pay’ for the work in an ‘unethical, foolish, possibly illegal’ move.

When pressed by reporters on Tuesday, No 10 declined to deny suggestions that Mr Johnson received a loan from the Conservative Party to cover the initial costs, before repaying the party.

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