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| MP attendance pay plan is shelved | MP attendance pay plan is shelved |
| (10 minutes later) | |
| The government has abandoned plans for a vote on scrapping MPs' second homes allowance, it has announced. | The government has abandoned plans for a vote on scrapping MPs' second homes allowance, it has announced. |
| Gordon Brown's plan to replace it with a flat-rate daily allowance failed to win support from the Tories, Lib Dems and many backbench Labour MPs. | Gordon Brown's plan to replace it with a flat-rate daily allowance failed to win support from the Tories, Lib Dems and many backbench Labour MPs. |
| The prime minister said "swift reform" was still needed and asked Parliament's standards watchdog to bring forward its review of expenses to July. | The prime minister said "swift reform" was still needed and asked Parliament's standards watchdog to bring forward its review of expenses to July. |
| MPs will still vote on other plans for reform put forward by the government. | MPs will still vote on other plans for reform put forward by the government. |
| The Tories and Lib Dems argued that an attendance allowance which did not require receipts was less transparent. | The Tories and Lib Dems argued that an attendance allowance which did not require receipts was less transparent. |
| The independent inquiry by the Committee on Standards in Public Life is due to report back by the end of this year. | The independent inquiry by the Committee on Standards in Public Life is due to report back by the end of this year. |
| 'Cost savings' | 'Cost savings' |
| But in a letter to its chairman, Sir Christopher Kelly, Mr Brown said: "The government remains determined to move to an allowance system that is fair, transparent and less costly than the current system." | But in a letter to its chairman, Sir Christopher Kelly, Mr Brown said: "The government remains determined to move to an allowance system that is fair, transparent and less costly than the current system." |
| He also said: "You will also be aware that a consensus has not been reached on the future of the Personal Additional Accommodation Expenditure for MPs. But we are agreed on the need for swift reform. | He also said: "You will also be aware that a consensus has not been reached on the future of the Personal Additional Accommodation Expenditure for MPs. But we are agreed on the need for swift reform. |
| "Therefore I would ask the Committee on Standards in Public Life to come forward with its proposals on this issue as soon as possible and preferably before the summer recess, taking into account MPs' attendance at Westminster, the need for transparency and accountability and the desire to reduce the existing limits on the allowances which MPs may claim, producing overall cost savings." | "Therefore I would ask the Committee on Standards in Public Life to come forward with its proposals on this issue as soon as possible and preferably before the summer recess, taking into account MPs' attendance at Westminster, the need for transparency and accountability and the desire to reduce the existing limits on the allowances which MPs may claim, producing overall cost savings." |
| He added: "I continue to highly value the role of the Committee on Standards in Public Life and look forward to your report on all aspects of MPs allowances." | He added: "I continue to highly value the role of the Committee on Standards in Public Life and look forward to your report on all aspects of MPs allowances." |
| A Commons debate and vote is expected on Thursday but will now concentrate on other proposals made by Mr Brown last week - such as greater transparency on MPs' earnings outside Parliament and making the Commons authorities, not MPs, responsible for employing staff. | A Commons debate and vote is expected on Thursday but will now concentrate on other proposals made by Mr Brown last week - such as greater transparency on MPs' earnings outside Parliament and making the Commons authorities, not MPs, responsible for employing staff. |
| Lib Dem leader Nick Clegg said that would be a "real abdication of leadership" by Mr Brown. | Lib Dem leader Nick Clegg said that would be a "real abdication of leadership" by Mr Brown. |
| 'Lackadaisical' | |
| He told BBC Radio 4's PM programme: "What we will be left with is the worst of all worlds: we'll have a list of fairly non-contentious but fairly minor items to agree this week, whilst the real thing that has been the source of rightful public anger, namely the very lackadaisical way in which MPs are given money for their second homes, will be left intact." | He told BBC Radio 4's PM programme: "What we will be left with is the worst of all worlds: we'll have a list of fairly non-contentious but fairly minor items to agree this week, whilst the real thing that has been the source of rightful public anger, namely the very lackadaisical way in which MPs are given money for their second homes, will be left intact." |
| Mr Brown's plan to replace the controversial second homes allowance - worth up to £24,000 a year to MPs representing seats outside inner London - failed to win support among opposition parties. | Mr Brown's plan to replace the controversial second homes allowance - worth up to £24,000 a year to MPs representing seats outside inner London - failed to win support among opposition parties. |
| It came as a surprise to many when it was announced on the Downing Street website last week. | It came as a surprise to many when it was announced on the Downing Street website last week. |
| But it was quickly criticised by the Tories and Liberal Democrats, who said a "clocking on" allowance amounted to a "cheque for turning up to work" and was much criticised where it operated in the European Parliament. | But it was quickly criticised by the Tories and Liberal Democrats, who said a "clocking on" allowance amounted to a "cheque for turning up to work" and was much criticised where it operated in the European Parliament. |
| Sir Christopher also said people would have "great difficulty in the notion that claims for the reimbursement of expenses should not need to be backed by receipts". | Sir Christopher also said people would have "great difficulty in the notion that claims for the reimbursement of expenses should not need to be backed by receipts". |
| Asked if the plan for a flat-rate allowance was dead on Monday, Commons leader Harriet Harman said: "No, not at all." | Asked if the plan for a flat-rate allowance was dead on Monday, Commons leader Harriet Harman said: "No, not at all." |
| Party row | |
| She told the BBC: "We are planning to have a debate and vote on Thursday on a whole range of issues where we know that the public is dissatisfied with the current situation." | She told the BBC: "We are planning to have a debate and vote on Thursday on a whole range of issues where we know that the public is dissatisfied with the current situation." |
| Mr Clegg said he believed there was still time to reach some sort of agreement before Thursday and has put forward new proposals to try to reach a cross-party consensus. | Mr Clegg said he believed there was still time to reach some sort of agreement before Thursday and has put forward new proposals to try to reach a cross-party consensus. |
| He is calling for the second homes allowance to be replaced with expenses for only basic utility bills, council tax and either rent or mortgage interest. | He is calling for the second homes allowance to be replaced with expenses for only basic utility bills, council tax and either rent or mortgage interest. |
| He dropped his proposal for MPs to be stopped from buying second homes altogether - an idea opposed by Mr Brown and Mr Cameron. | He dropped his proposal for MPs to be stopped from buying second homes altogether - an idea opposed by Mr Brown and Mr Cameron. |
| Mr Cameron said he was "delighted" that Mr Clegg seemed to have moved closer to his own position on expenses and said it was important any new system was "more restrictive". | Mr Cameron said he was "delighted" that Mr Clegg seemed to have moved closer to his own position on expenses and said it was important any new system was "more restrictive". |
| But he added: "I don't know what's going to happen on Thursday. I have no idea what the prime minister is going to do. It seems there is considerable confusion in Downing Street." | But he added: "I don't know what's going to happen on Thursday. I have no idea what the prime minister is going to do. It seems there is considerable confusion in Downing Street." |
| Mr Cameron said the whole idea of a daily rate had lost public confidence. | Mr Cameron said the whole idea of a daily rate had lost public confidence. |
| In July all MPs' expenses claims, with receipts, dating back to 2004 are due to be published after a long freedom of information battle. | In July all MPs' expenses claims, with receipts, dating back to 2004 are due to be published after a long freedom of information battle. |