Labour will be standing a candidate in the North Shropshire by-election prompted by the resignation of former Tory MP Owen Paterson, the party has confirmed.

Mr Paterson, who had represented North Shropshire since 1997, resigned on Thursday after a 24-hour debacle where he was saved from potential suspension by Tory colleagues after being found to have breached lobbying rules, only to face a fresh vote when the Government made a U-turn following allegations of sleaze.

The circumstances of the subsequent by-election have led to claims the opposition parties could unite behind a single anti-sleaze candidate.

But the Labour Party has now confirmed to the PA news agency that it will be standing its own candidate.

Previously, The Guardian newspaper reported a Labour spokesperson as saying: “We’re not in the business of alliances: we’re in the business of putting forward a Labour candidate, with Labour values.”

Earlier on Friday, Education Secretary Nadhim Zahawi admitted that he had not read the detail of the report into Mr Paterson’s conduct, despite voting for the amendment which saved him from suspension on Wednesday.

Asked on BBC Breakfast who was right in the row, after Mr Paterson reasserted that he was innocent, Mr Zahawi said: “I actually haven’t read the report.”

Asked how he could have voted on the issue when he had not read the report, he said: “I’ve looked at the report, I haven’t gone into the detail.

“Owen says that much of it is contested, right? I think something like 14 people have sent statements (saying) that it’s contested.”

Later, on Times Radio, he added: “So, my understanding is that there was something like 14 statements that have gone in that dispute, some of the evidence in the report, I haven’t read those statements.”

Mr Paterson has said the standards process neglected to take evidence from witnesses who would have supported his cause.

Labour MP Chris Bryant, the chairman of the Committee on Standards, said every MP had been emailed urging them to read the report.

He told the PA: “I know ministers have a busy life, but I guess you’d hope that the Education Secretary would do his homework.”

Despite Mr Paterson quitting rather than face the prospect of being suspended from Parliament for 30 sitting days, MPs are set to hold an emergency debate on Monday on the consequences of this week’s events in the Commons.

Since he has resigned there is now no need for MPs to endorse the Standards Committee report concerning him.

Conservative Sir David Lidington, former leader of the House of Commons, said the farce had damaged politicians’ reputation.

“The reputation of the House of Commons as an institution and MPs of all parties will have been damaged by the events of the last 24 hours,” he told BBC Radio 4’s Today programme.

And the former MP also said the affair has “weakened the Government”, making it harder for Boris Johnson to win support from backbench MPs on potentially unpopular measures in future.

But Mr Zahawi insisted the focus had always been on creating a system of appeal for MPs found to have committed wrongdoing, and said it had been a mistake to conflate Mr Paterson’s case with wider reform.

He said: “Conflating that with the particular case of Owen Paterson was a mistake and I think the Leader of the House, Jacob Rees-Mogg, came to the House yesterday, upon reflection yes it was a mistake, and I think it was right to come back very quickly to the House and say we need to separate these things out.”

Mr Zahawi also called for compassion for Mr Paterson, whose wife Rose took her own life last year.

He told LBC: “I also think, by the way, part of possibly where these things, where you do make a mistake, is the sort of human factor, is the compassion.

“There’s a family here that’s lost a mother through suicide, and Owen himself has been devastated by this, and I think if you take it in the round, we’re all human beings.”

Mr Paterson faced a vote on his suspension after he was found to have repeatedly lobbied ministers and officials for two companies paying him more than £100,000 per year.

He had always maintained his innocence but said he was resigning because “I am unable to clear my name under the current system” and due to a desire to spare his family any more suffering.