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| Inquiry to start on MPs' expenses | Inquiry to start on MPs' expenses |
| (about 6 hours later) | |
| An inquiry into MPs' expenses is due to be launched, the day after party leaders failed to reach agreement on how the system should be reformed. | |
| The independent Committee on Standards in Public Life will produce proposals on MPs' claims by the end of the year. | The independent Committee on Standards in Public Life will produce proposals on MPs' claims by the end of the year. |
| Mr Brown wants to replace a second-home allowance with a flat-rate payment based on attendance at Westminster. | Mr Brown wants to replace a second-home allowance with a flat-rate payment based on attendance at Westminster. |
| But he has failed to win the support of the Conservative leader David Cameron and the Lib Dem leader Nick Clegg. | |
| They both say such a system would be less transparent as it would not require receipts. | They both say such a system would be less transparent as it would not require receipts. |
| Interim measures | Interim measures |
| Sir Christopher Kelly, who is leading the independent review of MPs' expenses, has said he was been assured that the proposed changes were only interim measures, ahead of his fuller investigation. | |
| His committee, which was charged by the prime minister with investigating the allowances system, brought forward its inquiry after newspaper revelations about the use of second-home expenses by ministers. | |
| Sadly what is clear is the prime minister is absolutely wedded to his idea of having a system where we pay MPs to turn up and do their job David CameronConservative leader | Sadly what is clear is the prime minister is absolutely wedded to his idea of having a system where we pay MPs to turn up and do their job David CameronConservative leader |
| Home Secretary Jacqui Smith and work minister Tony McNulty are being investigated over their claims - but both say they acted within the rules. | |
| Ms Smith has apologised for "mistakenly" claiming £10 for two adult films watched by her husband. | Ms Smith has apologised for "mistakenly" claiming £10 for two adult films watched by her husband. |
| A vote on Mr Brown's proposals to change the system is due in the House of Commons next week. | |
| His proposal to end the second homes allowance, worth up to £24,000 a year for MPs outside central London, was cautiously welcomed by Mr Cameron and Mr Clegg, but both raised concerns about the idea of replacing it with a flat-rate daily attendance allowance. | |
| Mr Cameron wants to stop MPs putting furniture, televisions and home decoration on expenses, but would allow them to claim for mortgage interest payments and rent. | Mr Cameron wants to stop MPs putting furniture, televisions and home decoration on expenses, but would allow them to claim for mortgage interest payments and rent. |
| WHAT IS THE COMMITTEE ON STANDARDS IN PUBLIC LIFE? The committee was set up by John Major in 1994, after a series of scandals involving MPs, to advise government on ethical standardsIt is funded by the Cabinet Office but independent of governmentIt has 10 members, approved by the prime ministerSir Christopher Kelly became chairman in 2008 | WHAT IS THE COMMITTEE ON STANDARDS IN PUBLIC LIFE? The committee was set up by John Major in 1994, after a series of scandals involving MPs, to advise government on ethical standardsIt is funded by the Cabinet Office but independent of governmentIt has 10 members, approved by the prime ministerSir Christopher Kelly became chairman in 2008 |
| Mr Clegg would allow them to claim taxpayers' money for rent but not to help buy second homes. | Mr Clegg would allow them to claim taxpayers' money for rent but not to help buy second homes. |
| The prime minister met his counterparts on Wednesday to discuss the plans but they failed to reach a consensus. | The prime minister met his counterparts on Wednesday to discuss the plans but they failed to reach a consensus. |
| They said Mr Brown had been unable to give them a figure on what the daily allowance would cost. | They said Mr Brown had been unable to give them a figure on what the daily allowance would cost. |
| Mr Cameron said: "Sadly what is clear is the prime minister is absolutely wedded to his idea of having a system where we pay MPs to turn up and do their job. | Mr Cameron said: "Sadly what is clear is the prime minister is absolutely wedded to his idea of having a system where we pay MPs to turn up and do their job. |
| "What he's effectively doing is replacing a system where you have to produce receipts with a system where you get the money without having to produce any receipts. | "What he's effectively doing is replacing a system where you have to produce receipts with a system where you get the money without having to produce any receipts. |
| "That's completely untransparent. I simply don't think the British public will accept that." | "That's completely untransparent. I simply don't think the British public will accept that." |
| 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." | 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." |
| Downing Street said the leaders had had a "constructive discussion". | |
| Mr Brown said in Parliament his proposals would "deal with this problem and deal with it now". |