Science Story

03 December 2008 03:47 BST

MPs accept below-inflation pay-rise

MPs have accepted a below-inflation pay-rise of 2.25 per cent following a vote in the Commons.

It marks the last time MPs will vote on their own salary. Future decisions will be made by a salaries review body.

Also on Thursday MPs rejected a report on expenses compiled by their own independent review, headed by Michael Martin.

They struck down proposals for an external audit, replacing it with an internal body, and rejected calls to get ris of the John Lewis list, whereby they can claim expenses on their second home.

The existing form of housing allowance will continue as it does currently.

Many MPs wanted that mechanism to be considerably more generous in the future, but they were overruled by those who voted for a more moderate increase later.

One of those amendments specifying how future pay rises would operate was defeated by 196 votes to 155.

MPs also voted against a second amendment by 141 to 216. This amendment would have given MPs a very generous future system for their salaries which took into account expenses and allowances.

Both amendments would have given them annual pay rises of up to 4.4 per cent.

A £650-a-year 'catch up' payment, backed by speaker Mr Martin's independent review, but opposed by ministers, was also rejected.

The vote comes as members of the Commons debate their expenses system.

The amendment proposed pay restraint this year but above-inflation top-ups in future to make up for it. Gordon Brown thinks restraint in MPs pay will show a good example to public sector workers, where pay rises are pegged to around two per cent.

The review of MPs' allowances followed from the controversy over Tory MP Derek Conway, who paid his son to do parliamentary work out of taxpayers' money despite him being rarely seen in the office.

But the review itself has come under sustained criticism, with calls for it to be run by an independent body and allegations about Mr Martin's extensive use of expenses.

The debate comes at the same time as the Electoral Commission said government proposals for party financing reform would compromise its independence.

Sam Younger, chairman of the commission, said he was satisfied with the greater power the government's white paper on party financing and expenditure gave the commission, but objected to requirements that it should have four commissioners, three of which are picked from the mainstream political parties and one from more minor parties.

"We are pleased the government has accepted our argument to strengthen the Commission with wider powers and more flexible sanctions," Mr Younger said.

"Whilst we agree that it is important for the Electoral Commission to have access to recent direct experience of political parties, this must not be done at the expense of our independence. The commission has always consulted with political parties and our proposal to enhance the current arrangements with parties will address concerns on this front without jeopardising confidence in our independence."

Party financing has been near the top of the political agenda since the cash-for-honours affair. It is even more prescient now as the Labour party clings to the union Unite to keep it from financial ruin.

The Conservatives – always a far richer party – still rely heavily on the extensive bank account of controversial party treasurer Michael Ashcroft.