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Sunday, 22 November 2009

MPs' expenses report published

  • Published: Wednesday, 4 November 2009

Sir Christopher Kelly's report on the future system of MPs' expenses has been published. Its recommendations include a new independent regulatory body to set MPs' pay and pensions, and banning the practice of 'flipping' homes.

Recommendations for MPs' expenses

The report states that in future a new independent regulatory body (currently being set up) should set the pay and pensions of MPs as well as their expenses. This body should also have the power to investigate and impose non-parliamentary punishments.

Mortgage interest payments stopped

The report says that MPs should not be able to claim for interest on mortgage payments. It says that there should be no further capital gains at public expense.

'Flipping' houses would also no longer be possible. (Some MPs had been accused of switching the designation of their main and second homes to claim the most money they could.)

A changeover period of one more Parliament, or five years, would apply to these rule changes. Any capital gains made during this period as a result of public money will be returned to the taxpayer.

Only additional accommodation costs "wholly, exclusively and necessarily incurred in pursuit of MPs' parliamentary duties" will be covered.

These include council tax, utility bills, telephone line rental and calls, security, contents insurance and removals at the beginning and end of a tenancy.

The costs of cleaning, gardening, furnishings and other items should not be covered.

Other recommendations

The report also recommends that:

  • MPs should only be paid back rent or hotel costs - a central agency should source, maintain and handle payments on suitable properties
  • MPs with constituencies within reasonable commuting distance of Parliament should not be entitled to additional accommodation
  • the London cost allowance should be reduced for all London MPs
  • the practice of employing family members should be stopped by the end of the next Parliament or five years
  • the communication allowance should be abolished
  • all expenses claims should require receipts
  • receipts or documentary evidence should continue to be published
  • MPs should not be prevented from having paid jobs outside Parliament, but it should be public that they do so and information about it should be drawn to voters' attention at election time
  • Westminster MPs should not be allowed to sit in a devolved legislature

Sir Christopher Kelly said: "Revelations about the expenses system have caused considerable damage. I do not believe that trust in those who govern us will be restored unless those in authority show leadership and determination in putting the abuses of the past behind them, however uncomfortable that may be for some.

"We are clear that the three tests set for us by the leaders of the main parties - increased accountability, transparency and reduced cost - have been met. This report should now be handed over to the regulatory body for implementation in full, with the changes introduced from the beginning of the next Parliament. My Committee will continue to take a close interest."

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