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'No PM impropriety' on expenses Minister faces flat sale pressure
(about 5 hours later)
A newspaper has clarified its reporting of expenses claimed by Prime Minister Gordon Brown to reimburse his brother for shared cleaning costs. Communities Secretary Hazel Blears is facing pressure after confirming she did not pay capital gains tax on profit from the sale of a London flat.
The Telegraph, which is publishing Commons expenses claims, said the PM was among MPs who had "fallen victim to an overly complex expenses system". The property was registered as her main residence with the Inland Revenue when Ms Blears had been claiming MPs' second home expenses relating to the flat.
Immigration minister Phil Woolas and Labour MP Margaret Moran have said they could take legal action over reports. A spokesman for Ms Blears said she had complied with Commons and tax rules.
Further reports about MPs from other parties are expected in coming days. The Sunday Telegraph also reports second home claims by Sinn Fein MPs, who do not take their Commons seats.
A Sunday Telegraph leader article said: "There are those MPs who, despite their good intentions, have none the less fallen victim to an overly complex expenses system that has served to portray their actions in an unflattering light. Ms Blears sold the south London flat in August 2004, making a £45,000 profit, when it would have been registered with tax authorities as her main residence.
"For example, the receipts submitted by Gordon Brown for the cost of a cleaner, shared with his brother Andrew, fall into such a category.
Woolas: Items on receipts not claimed
"There has never been any suggestion of any impropriety on the part of the prime minister or his brother."
On Friday, the Daily Telegraph reported the £6,577 claim made by Gordon Brown to reimburse his brother for payments to a cleaner that the men shared.
This was among details of 13 Cabinet ministers' expenses, followed on Saturday by details of claims made by junior ministers and other Labour MPs, as well as one prominent Conservative MP.
Flat sale
Communities Secretary Hazel Blears, named in reports on Friday, has confirmed that she did not pay capital gains tax on the sale of a London flat that had been declared as her second home to Commons authorities.
Ms Blears sold the flat in August 2004, when it would have been registered with tax authorities as her main residence.
Ms Blears claimed for expenditure on three homes in one year
Four months earlier, she had declared the flat to be her second home to Commons authorities and started claiming £850 a month for the mortgage.Four months earlier, she had declared the flat to be her second home to Commons authorities and started claiming £850 a month for the mortgage.
There are those MPs who, despite their good intentions, have fallen victim to an overly complex expenses system that has served to portray their actions in an unflattering light Sunday Telegraph MPs' expense claims - key details Q&A: The MP expenses row
A spokesman for Ms Blears said: "Hazel has complied with the rules of the House authorities and [HM Revenue & Customs]. No liability for capital gains tax arose on the sale of her flat in Kennington."A spokesman for Ms Blears said: "Hazel has complied with the rules of the House authorities and [HM Revenue & Customs]. No liability for capital gains tax arose on the sale of her flat in Kennington."
Capital gains tax is charged at 40% on the sale of a property not regarded by the taxman as a main residence. Capital gains tax is charged at 40% on profit from the sale of a property, not regarded by the taxman as a main residence.
A spokeswoman said HM Revenue & Customs (HMRC) could not comment on individual taxpayers' affairs.
Sinn Fein claims
The Sunday Telegraph reports that five Sinn Fein MPs have claimed a total of almost £500,000 in second home expenses - despite the party not taking up its Commons seats.The Sunday Telegraph reports that five Sinn Fein MPs have claimed a total of almost £500,000 in second home expenses - despite the party not taking up its Commons seats.
A Sinn Finn spokesman denied that the MPs, including president Gerry Adams and Northern Ireland deputy first minister Martin McGuinness, had done anything wrong. A Sinn Fein spokesman denied that the MPs, including president Gerry Adams and Northern Ireland deputy first minister Martin McGuinness, had done anything wrong.
"It is widely known that Sinn Fein MPs travel regularly to London on parliamentary business and utilise the accommodation that we rent when there," he said."It is widely known that Sinn Fein MPs travel regularly to London on parliamentary business and utilise the accommodation that we rent when there," he said.
"We do not purchase properties at public expense and therefore do not profit from the expenses claimed as of right.""We do not purchase properties at public expense and therefore do not profit from the expenses claimed as of right."
Legal advice The Telegraph has published details of expenses claims by the prime minister, government ministers, other Labour MPs and a prominent Conservative MP in recent days.
Mr Woolas has accused the Telegraph of "absolutely disgusting" reporting, over allegations he claimed for women's clothing, nappies and comics. Further reports about MPs from other parties are expected in coming days.
He says the items were listed on a receipt for food which he submitted, but he did not receive any money for them. 'No impropriety'
The minister said he believed the newspaper's claims might be "actionable" and he was seeking legal advice. Work and pensions minister Kitty Ussher received more than £22,000 over a 12-month period towards improvements to her home, the paper reported.
Moran defends expenses claims A spokesman said the claims hade been in line with Commons rules and approved by the fees office.
Ms Moran, Labour's Luton South MP, told the BBC the paper's report was "inaccurate" and "probably actionable". Mr Brown says the expenses system does not work and must be changed
The Telegraph alleged that she spent £22,500 on treating dry rot at a Southampton property, designated as her second home 100 miles from her constituency. "[Ms Ussher] fully supports the committee on standards in public life's review into creating a better system for MPs' expenses that the prime minister has asked for, and believes it is right that MPs' expenses claims should be published," he said.
In an interview for the Politics Show East to be broadcast on Sunday on BBC One at 1100 BST, Ms Moran insisted she had "done everything by the rules" and said the Telegraph article was "incredibly misleading". The Sunday Telegraph has clarified an earlier report about a £6,577 claim made by Gordon Brown to reimburse his brother for payments to a cleaner that the men shared.
It included "inaccuracies, some of which I think are probably actionable, and I think that it is deeply irresponsible", she added. A leader article said: "There are those MPs who, despite their good intentions, have none the less fallen victim to an overly complex expenses system that has served to portray their actions in an unflattering light.
Leak probe? "For example, the receipts submitted by Gordon Brown for the cost of a cleaner, shared with his brother Andrew, fall into such a category.
"There has never been any suggestion of any impropriety on the part of the prime minister or his brother."
The question you have to ask is who devised the system? MPs devised the system under their self-regulating arrangements Sir Alistair Graham, ex-chairman, committee for standards in public life
Full details of all MPs' expenses dating back four years, running to 2.4 million receipts, were due to be published in the middle of July after the Commons authorities lost a Freedom of Information battle.Full details of all MPs' expenses dating back four years, running to 2.4 million receipts, were due to be published in the middle of July after the Commons authorities lost a Freedom of Information battle.
But the Telegraph is revealing the information early.But the Telegraph is revealing the information early.
The Commons authorities have complained to the Metropolitan Police, who confirmed they were considering a request for an investigation into the leak to the paper.The Commons authorities have complained to the Metropolitan Police, who confirmed they were considering a request for an investigation into the leak to the paper.
The question you have to ask is who devised the system? MPs devised the system under their self-regulating arrangements Sir Alistair Graham, ex-chairman, committee for standards in public life MPs' expense claims - key details Q&A: The MP expenses row
Former chairman of the committee for standards in public life, Sir Alistair Graham, said the expenses system had to be decided in the public and taxpayers' interest, by an independent outside body.Former chairman of the committee for standards in public life, Sir Alistair Graham, said the expenses system had to be decided in the public and taxpayers' interest, by an independent outside body.
"It is depressing to keep hearing [MPs] saying, 'Well, it's the system that was wrong and we are changing the system.'"It is depressing to keep hearing [MPs] saying, 'Well, it's the system that was wrong and we are changing the system.'
"The question you have to ask is who devised the system? MPs devised the system under their self-regulating arrangements and that's what must change for the future.""The question you have to ask is who devised the system? MPs devised the system under their self-regulating arrangements and that's what must change for the future."
Former sports minister Kate Hoey said that if MPs were found to have "changed homes deliberately in order to be able to capitalise on selling a flat and then moving on and getting another one, I hope that their consciences would say that they maybe should pay money back".
An ICM poll of 508 adults for the News of the World found that more than two-thirds of respondents said they believed the expenses revelations had damaged the prime minister.An ICM poll of 508 adults for the News of the World found that more than two-thirds of respondents said they believed the expenses revelations had damaged the prime minister.
Some 89% believed the reputation of Parliament had been tarnished, and 91% said they wanted expenses records to be published in full straight away.Some 89% believed the reputation of Parliament had been tarnished, and 91% said they wanted expenses records to be published in full straight away.
Labour's poll ratings have slumped to just 23% - lower than when Michael Foot was party leader in the 1980s - according to a survey of 2,246 people by BPIX for the Mail on Sunday.Labour's poll ratings have slumped to just 23% - lower than when Michael Foot was party leader in the 1980s - according to a survey of 2,246 people by BPIX for the Mail on Sunday.
A YouGov poll of 2,209 voters for the Sunday Times suggested Labour's support had dropped by seven percentage points to 27% - 16 points behind the Conservatives.A YouGov poll of 2,209 voters for the Sunday Times suggested Labour's support had dropped by seven percentage points to 27% - 16 points behind the Conservatives.