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Inquiry to start on MPs' expenses Warning over PM's expenses plan
(about 3 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 man heading an inquiry into MPs' expenses has warned his committee could oppose Gordon Brown's reform plans, due to be voted on by MPs next week.
The independent Committee on Standards in Public Life will produce proposals on MPs' claims by the end of the year. Sir Christopher Kelly said the PM's plan to replace the second-home allowance with a flat-rate attendance fee for MPs was an "interim" proposal.
Mr Brown wants to replace a second-home allowance with a flat-rate payment based on attendance at Westminster. Party leaders have failed to reach agreement on changes to the system.
But he has failed to win the support of the Conservative leader David Cameron and the Lib Dem leader Nick Clegg. The Conservatives and Lib Dems said the Labour plan would be less transparent because it would not require receipts.
They both say such a system would be less transparent as it would not require receipts. 'Tide of fury'
Interim measures Sir Christopher, whose independent Committee on Standards in Public Life begins its review on Thursday, said he believed an allowance payment based on MPs' daily attendance at Westminster was unlikely to be accepted by the public.
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. "I think the public would have great difficulty in the notion that claims for the reimbursement of expenses should not need to be backed by receipts," he told the BBC's Today programme.
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. Mr Brown wants a new system of expenses, scrapping the controversial second-home allowance, agreed before the summer.
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 Despite failing to win the support of the Conservative leader David Cameron and the Lib Dem leader Nick Clegg, the prime minister intends to press ahead with a vote on the issue.
Sir Christopher said he had been assured the proposed changes were only interim measures ahead of his fuller investigation, and said his committee may come out against aspects of them.
If the committee comes to the conclusion that some of the things that are introduced are wrong, then we will say so Sir Christopher Kelly, Chairman of the Committee on Standards in Public Life
"If these changes are introduced, and there must be some doubt about that in the light of what happened yesterday, then we will have to take account of them and weigh them up against other alternatives," he said.
"But if the committee comes to the conclusion that some of the things that are introduced are wrong, then we will say so."
Sir Christopher said he understood why the prime minister had put forward a short-term solution but argued there was unlikely to be an "unambiguously right answer" and an independent look at the whole set-up was needed.
"The tide of public fury about what has been going on on MPs' expenses is overwhelming," he added.
"I quite understand why he [the prime minister] felt it necessary to be seen to be acting quickly. The prime minister, however, made clear to me that the proposals he was making were interim proposals subject to anything we may come up with."
Expenses scandals
His committee, which brought forward its inquiry after newspaper revelations about the use of second-home expenses by ministers, is set to report by the end of the year.
Home Secretary Jacqui Smith and work minister Tony McNulty are being investigated over their claims - but both say they acted within the rules.Home Secretary Jacqui Smith and work minister Tony McNulty are being investigated over their claims - but both say they acted within the rules.
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
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. Mr Brown's 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.
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
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. 'Lack of transparency'
They said Mr Brown had been unable to give them a figure on what the daily allowance would cost. Following a meeting with the prime minister on Wednesday, the opposition leaders 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".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".