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Clegg seeks end to MP home gains | Clegg seeks end to MP home gains |
(about 4 hours later) | |
The Lib Dem leader has urged his fellow party leaders to back his plans for reforming MPs' second-homes allowances. | The Lib Dem leader has urged his fellow party leaders to back his plans for reforming MPs' second-homes allowances. |
Nick Clegg's proposals would see the allowance replaced with expenses for only basic utility bills, council tax and either rent or mortgage interest. | |
He also suggests measures to stop MPs making a profit from any part of a mortgage funded by the taxpayer. | He also suggests measures to stop MPs making a profit from any part of a mortgage funded by the taxpayer. |
Mr Clegg and David Cameron have rejected the PM's plan for a flat-rate fee based on attendance at Westminster. | Mr Clegg and David Cameron have rejected the PM's plan for a flat-rate fee based on attendance at Westminster. |
Mr Clegg has set out his revised proposals in a letter to the Tory leader and Gordon Brown. | Mr Clegg has set out his revised proposals in a letter to the Tory leader and Gordon Brown. |
Public anger | Public anger |
The moves towards reform follow criticism of MPs' and ministers' use of second-homes allowances, worth up to £24,000 a year to MPs whose constituencies are outside inner London. | |
Sir Christopher Kelly, chairman of the Committee on Public Standards, has begun an in-depth investigation into reforming the system, with the findings due by the end of the year. | Sir Christopher Kelly, chairman of the Committee on Public Standards, has begun an in-depth investigation into reforming the system, with the findings due by the end of the year. |
Any reforms must be durable, transparent, reduce the cost of our politics and not merely constitute an interim fix that falls apart under public scrutiny Nick CleggLib Dem leader | Any reforms must be durable, transparent, reduce the cost of our politics and not merely constitute an interim fix that falls apart under public scrutiny Nick CleggLib Dem leader |
But all the major parties want to reach agreement on an interim measure because of the scale of public anger at some MPs' allowance claims. | But all the major parties want to reach agreement on an interim measure because of the scale of public anger at some MPs' allowance claims. |
In his letter, Mr Clegg said he had dropped one of his original reform demands to try to reach cross-party consensus quickly. | In his letter, Mr Clegg said he had dropped one of his original reform demands to try to reach cross-party consensus quickly. |
He had argued MPs should be stopped from buying second homes altogether, but his proposal was rejected by Mr Brown and Mr Cameron last week. | He had argued MPs should be stopped from buying second homes altogether, but his proposal was rejected by Mr Brown and Mr Cameron last week. |
Now Mr Clegg suggests MPs should instead be prevented from making any financial gains from any part of a mortgage paid for by the taxpayer. | Now Mr Clegg suggests MPs should instead be prevented from making any financial gains from any part of a mortgage paid for by the taxpayer. |
In addition, the taxpayer should get a share of any capital appreciation in the value of the property, proportionate to the amount funded out of public funds, he argues. | In addition, the taxpayer should get a share of any capital appreciation in the value of the property, proportionate to the amount funded out of public funds, he argues. |
Transparency | Transparency |
Outlining his plan to Mr Brown, Mr Clegg wrote: "If it is an interest-only mortgage, the taxpayer would get 100% of the capital gain; if it is a capital and interest mortgage, the taxpayer would get the capital gain in proportion to the share of total mortgage costs paid." | Outlining his plan to Mr Brown, Mr Clegg wrote: "If it is an interest-only mortgage, the taxpayer would get 100% of the capital gain; if it is a capital and interest mortgage, the taxpayer would get the capital gain in proportion to the share of total mortgage costs paid." |
He said this would meet the objective of allowing home ownership to continue - insisted on by Mr Brown and Mr Cameron - but would still mean MPs would not profit from using taxpayers' money to make investments in the property market. | He said this would meet the objective of allowing home ownership to continue - insisted on by Mr Brown and Mr Cameron - but would still mean MPs would not profit from using taxpayers' money to make investments in the property market. |
But while Mr Clegg said he was prepared to alter his proposals in this way to secure agreement, he still rejected the idea of daily allowances. | But while Mr Clegg said he was prepared to alter his proposals in this way to secure agreement, he still rejected the idea of daily allowances. |
"Such a system - in almost any form - means taxpayers will have almost no idea what their money is being spent on by MPs," he wrote. | "Such a system - in almost any form - means taxpayers will have almost no idea what their money is being spent on by MPs," he wrote. |
"Any reforms must be durable, transparent, reduce the cost of our politics and not merely constitute an interim fix that falls apart under public scrutiny." | "Any reforms must be durable, transparent, reduce the cost of our politics and not merely constitute an interim fix that falls apart under public scrutiny." |
Despite lacking support from the other parties for a daily allowance, Downing Street has said the government still plans to table a vote on expenses reform next week. | Despite lacking support from the other parties for a daily allowance, Downing Street has said the government still plans to table a vote on expenses reform next week. |
Tory plans | Tory plans |
The Conservative Party has published its own plans for reform, calling for the second homes allowance to be replaced by a transparent Parliamentary allowance from 1 July. | The Conservative Party has published its own plans for reform, calling for the second homes allowance to be replaced by a transparent Parliamentary allowance from 1 July. |
In a similar way to the Lib Dem proposals, this could be used to pay only for rent, utility bills, council tax and mortgage interest - subject to a new cap. | In a similar way to the Lib Dem proposals, this could be used to pay only for rent, utility bills, council tax and mortgage interest - subject to a new cap. |
All claims would have to published, with receipts, within 28 days, with no MP living within 20 miles of London eligible for the new allowance. | All claims would have to published, with receipts, within 28 days, with no MP living within 20 miles of London eligible for the new allowance. |
Sir Christopher's inquiry, set up by Mr Brown, was brought forward after newspaper revelations about the use of second-home expenses. | Sir Christopher's inquiry, set up by Mr Brown, was brought forward after newspaper revelations about the use of second-home expenses. |
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. |
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