Westminster sways in expenses review storm
Committee on standards in public life publishing recommendations in light of MP expenses scandal
Wednesday, 04, Nov 2009 04:51
By Matthew Champion.
The long-awaited review into MP expenses has finally been published, confirming proposals to ban support for mortgage interest payments and the employment of family members.
Sir Christopher Kelly, the chairman of the committee on standards in public life, called on the full implementation of all the recommendations by the beginning of the next parliament.
He said the plans "aim to strike a balance" between ensuring MPs are properly supported and safeguards are put in place to prevent the "abuses of the past".
Click here to read the report in full.
All three party leaders have said the recommendations should be accepted in full.
"People want to know that the system in future will be different, open, transparent, fair and not managed by MPs but an independent body," Gordon Brown said during prime minister's questions.
As expected, after the committee's findings were leaked partially last week, expenses for mortgage interest payments on second homes are recommended to be outlawed, as will the practice of 'flipping' second home designation to avoid capital gains tax.
MPs will no longer be able to claim for electrical appliances or gardening, with claims for utilities or security still being permitted.
Sir Christopher unveiled plans for MPs to be banned from employing relatives by the end of the next parliament, while communications allowances will also be banned.
On the ban for family members, the committee notes in its report: "We have heard much evidence commending the dedication and hard work of many family members, and about the advantages the arrangement may bring to constituents and to the family life of MPs.
"But, it is not consistent with modern employment practice designed to ensure fairness in recruitment, management of staff and remuneration; and it will always carry with it a suspicion of abuse."
MPs whose homes are within commutable distance of London will also be prevented from claiming second home allowances. But MPs will not be stopped from collecting other forms of income if such activity "remains within reasonable limits".
"Our proposals are reasonable and fair and bring Westminster into line with other walks of life and other legislatures. They recognise the unique circumstances of an MP's life but are shorn of the special features which gave scope for exploitation," Sir Christopher said in Westminster this morning.
"We realise that the new system will involve substantial change for MPs and where necessary we have recommended periods of transition."
He added: "We are clear that the three tests set for us by the leaders of the main parties - increased accountability, transparency and reduced costs - have been met."
The Kelly review is separate to the audit by Sir Thomas Legg, who is continuing to write to MPs to request they pay back certain expenses claims.