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MPs face cap on mortgage claims MPs face cap on mortgage claims
(10 minutes later)
Mortgage interest and rent claims will be capped at £1,250 per month under interim reforms to MPs' expenses, Speaker Michael Martin has said.Mortgage interest and rent claims will be capped at £1,250 per month under interim reforms to MPs' expenses, Speaker Michael Martin has said.
He said all parties had agreed on an immediate ban on second homes claims for furniture, cleaning and stamp duty.He said all parties had agreed on an immediate ban on second homes claims for furniture, cleaning and stamp duty.
Additionally, MPs will not be allowed to "flip" the designation of their second home during 2009/10.Additionally, MPs will not be allowed to "flip" the designation of their second home during 2009/10.
The statement came after Mr Martin said he would step down amid pressure over his handling of the expenses issue.The statement came after Mr Martin said he would step down amid pressure over his handling of the expenses issue.
Mr Martin told the Commons that the "fundamental reform" of allowances would result in the system shifting from self-regulation to regulation by an independent body. Mr Martin told a packed House of Commons that the "fundamental reform" of allowances would result in the system shifting from self-regulation to regulation by an independent body.
He said all parties were now committed to accepting the recommendations from Sir Christopher Kelly's Committee on Standards in Public Life, provided they met certain tests.He said all parties were now committed to accepting the recommendations from Sir Christopher Kelly's Committee on Standards in Public Life, provided they met certain tests.
"We have today agreed a robust set of interim measures which will take effect at once and do not pre-empt any more substantial changes to be put forward by the Kelly Committee," he added."We have today agreed a robust set of interim measures which will take effect at once and do not pre-empt any more substantial changes to be put forward by the Kelly Committee," he added.
Other measures announced by the Speaker included:
  • MPs who are couples will be obliged to nominate the same main home and will only be able to claim one person's accommodation allowance between them
  • All claims will be published quarterly online
  • Members will have to be "completely open" with the tax authorities about whether properties are second homes and liable to capital gains tax
  • Mortgage claims must be accurate, for interest only and on continuing loans
  • A clear test of "reasonableness" will be applied to all claims by the Department of Resources in an effort to "tighten up" allowances
  • Claims which are the subject of any doubts will be refused with no opportunity of appeal.
Mr Martin sat down to applause from MPs.
Leader of the Commons Harriet Harman will make a statement on the reforms on Wednesday and allow MPs a chance to "air their views".