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Leaders set for expenses meeting Leaders deadlocked on MP expenses
(about 11 hours later)
The prime minister is set to meet the Tory and Lib Dem leaders later to discuss plans to overhaul MPs' expenses to try to restore public confidence. Party leaders have failed to reach an agreement on changes to MPs' controversial second homes allowances.
His proposal to end the second homes allowance, worth up to £24,000 a year, has been cautiously welcomed by David Cameron and Nick Clegg. Gordon Brown met David Cameron and Nick Clegg to discuss his plans to replace them with a daily attendance allowance.
But there are concerns over plans to replace it with a flat-rate daily attendance allowance. But both the Tory and Lib Dem leaders say that would be less transparent as it would not require receipts.
The home secretary is among MPs who have been criticised over expenses. Mr Clegg said the PM "won't budge" on the idea, which MPs will vote on next week. Mr Brown said earlier action was needed immediately to restore trust.
Jacqui Smith and fellow minister Tony McNulty are both being investigated over their claims under the second homes allowance. His proposal to end the second homes allowance, worth up to £24,000 a year, had been cautiously welcomed by Mr Cameron and Mr Clegg but both had raised concerns about the idea of replacing it with a flat-rate daily attendance allowance.
Interim measures 'No more bathplugs'
The proposal, announced on the Downing Street website, surprised many at Westminster and led to accusations that Gordon Brown was doing it for political reasons - the day before the Budget, which is expected to unveil gloomy economic forecasts. After meeting the two other leaders on Wednesday, Mr Clegg told the BBC: "Gordon Brown won't budge. He wants to have this system where MPs would be given cheques for turning up to work."
Three weeks ago he appeared to rule out any changes before the independent Committee on Standards in Public Life finished its review of pay and expenses - expected at the end of the year. Mr Clegg said it was a shame they could not reach an agreement, but he would put forward his own "more radical" proposals to change expenses in the vote next week. The Liberal Democrats want to stop MPs claiming mortgage interest payments, forcing them to claim rent instead.
But on Tuesday Mr Brown said interim measures were needed much more quickly. The Conservatives want to replace the second homes allowance with one that would let MPs claim mortgage interest payments - subject to a cap - rent, utility bills, council tax but not for furniture, TVs or home decorations. The overall amount paid out would be lower, they say.
It's a knee jerk reaction to try and win some favour from the public Michael ConnartyLabour MP Brown proposes expenses overhaul Q&A: MPs' expenses We are putting forward proposals that deal with this problem and deal with it now Gordon Brown Brown proposes expenses overhaul Q&A: MPs' expenses
MPs are expected to vote on the issue next week and Mr Brown wants changes in place by July - the same month detailed expenses claims by all MPs, including receipts, dating back to 2004 are due to be published after a lengthy Freedom of Information battle. "No more furniture, no more redecoration, no more bathplugs and certainly no pornography - that's what people want, a cleaned up system," Mr Cameron said after the meeting.
Mr Brown said the expenses issue was "casting a cloud" over Parliament and MPs must recognise the public had lost confidence in the current system. "In the end the prime minister is saying let's have a system that is about giving you cash with no receipts and no transparency - that can't be right."
A Downing Street spokesman said the three party leaders had a "constructive discussion" but sources close to the prime minister said tinkering with the second home allowance would not bring back public trust.
Mr Brown's proposal surprised many at Westminster on Tuesday as three weeks earlier he had appeared to rule out any changes before the independent Committee on Standards in Public Life finished its review of pay and expenses at the end of the year.
'Less generous'
At prime minister's questions on Wednesday Mr Mulholland stood up to ask him: "Why on earth are you proposing a system whereby allowances are not based on actual receipts and need? We are going towards a system of daily allowances where the public would believe it was another example of snouts in the trough."
Mr Brown replied it was "absolutely clear" the present system did not work and needed to be changed immediately.
"If other people have better proposals let them bring them forward, but we are putting forward proposals that deal with this problem and deal with it now," he said.
Later, in a debate on the Budget, the Conservative former Cabinet minister John Redwood suggested the PM's proposals might well cost even more than the current system. Mr Brown has said he wants a "less generous" system.
Labour MP Michael Connarty has said he will not vote for it as it is a "knee jerk reaction" and could be abused.
MPs are expected to vote on proposed changes next week and Mr Brown wants changes in place by July - the same month detailed expenses claims by all MPs, including receipts, dating back to 2004 are due to be published after a lengthy Freedom of Information battle.
Home Secretary Jacqui Smith and work minister Tony McNulty are both being investigated over their claims under the current second homes allowance - both say they acted within the rules. Ms Smith has apologised for "mistakenly" claiming £10 for two adult films watched by her husband.
Sir Christopher Kelly, who is leading the independent review of MPs' expenses, said he had been assured that the changes were only interim measures, ahead of his findings.Sir Christopher Kelly, who is leading the independent review of MPs' expenses, said he had been assured that the changes were only interim measures, ahead of his findings.
'Secretive' MPs representing seats outside central London can currently claim up to £24,000 a year to cover the costs of their second homes.
He said they did not go far enough to end the long-running row over MPs' expenses, adding: "This is not something that can be solved by a quick fix."
Details of the proposed flat rate allowance are not known - Downing Street says the rate would be set independently by the Senior Salaries Review Board.Details of the proposed flat rate allowance are not known - Downing Street says the rate would be set independently by the Senior Salaries Review Board.
The BBC's political correspondent Carole Walker said she understood the stipend would be more than £140 a day and could be checked by the swipe card MPs use to enter Parliament.The BBC's political correspondent Carole Walker said she understood the stipend would be more than £140 a day and could be checked by the swipe card MPs use to enter Parliament.
The prime minister's spokesman has said that the government's view is that the new system for expenses should cost the taxpayer less than the present system. Other proposed changes are that the House of Commons, rather than MPs, would take over responsibility for employing MPs' staff - addressing concerns about MPs who employ relatives such as Conservative MP Derek Conway who was reprimanded for overpaying his two sons for work as researchers.
MPs representing seats outside central London can currently claim up to £24,000 a year to cover the costs of their second homes.
The BBC's political editor Nick Robinson said the new system could attract criticism as it would do away with the need for receipts - so embarrassing claims would not come to light.
The proposals were met with a mixed response at Westminster.
The country is fed up with the present situation Stephen Pound, Labour MP
Labour MP Michael Connarty told the BBC the flat rate idea was "absolutely stupid" and he wouldn't vote for it.
He said it opened the door to people clocking on for work in order to claim the attendance allowance, then leaving early.
"It's a madness, it's a knee jerk reaction to try and win some favour from the public."
But Labour MP Stephen Pound said action was needed now as feelings were running high. He told the BBC: "The country is fed up with the present situation. They simply will not tolerate the idea of MPs being able to claim for window cleaning, or whatever, out of the public purse."
Other proposed changes are that the House of Commons, rather than MPs, would take over responsibility for employing MPs' staff - addressing concerns about MPs who employ relatives.
The row over expenses began in earnest last year when it emerged Conservative MP Derek Conway had claimed thousands of pounds for employing his two sons as researchers, although they had done far less work than reported by him.
MPs would also be obliged to give more details of income they receive for work outside Parliament.MPs would also be obliged to give more details of income they receive for work outside Parliament.
The Conservatives said the PM's announcement was "a significant and very welcome U-turn" from Mr Brown.
But Tory leader David Cameron said he was worried the proposed daily attendance fee could be "open to exploitation".
Lib Dem leader Nick Clegg is also concerned about the daily allowance: "This is what they do in the European Parliament and I don't think bringing the Brussels gravy train to Westminster is the answer to our problems," he told the BBC.