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MPs to debate changes to expenses MPs to debate changes to expenses
(about 1 hour later)
MPs are to debate wide-ranging changes to their expenses regime, which will sweep away what Gordon Brown has called "centuries of history" for parliament. Major changes to MPs' expenses are to be debated as Gordon Brown warns of the need to end the "gentlemen's club".
Commons Speaker Michael Martin, who has announced his resignation over the expenses row, has put forward emergency proposals aimed at stopping abuses. Commons Speaker Michael Martin proposed emergency changes on Tuesday, after announcing he would quit over the row.
The measures - agreed to by party leaders - include a £1,250-a-month cap on rent and mortgage interest payments. Party leaders have agreed to proposals for a £1,250-a-month cap on rent and mortgage interest payments and a ban on "flipping" second homes in 2009/10.
They would also ban second homes claims for furniture, cleaning and stamp duty. Meanwhile Hazel Blears' future in the cabinet is in doubt after Mr Brown said her claim was "totally unacceptable".
Additionally, MPs will not be allowed to "flip" the designation of their second home during 2009/10. Sources said the communities secretary was "chipper" despite the PM's criticism of her failure to pay capital gains tax on the sale of a flat she designated as her second home for Commons expenses purposes.
'Full confidence'
She has said she will pay the money - and although Mr Brown said she had not broken the law or the rules he told GMTV she was "minister for communities at the moment". He added there would be a further investigation and if that found any rules had been broken action would be taken.
Ms Blears has however received support from her constituency, with the local party saying she "will be our Labour candidate at the next General Election. We have full confidence in her".
The days of MPs being judge and jury of their own pay, judge and jury of their own expenses, are over Nick Clegg, Lib Dem leader In full: Speaker's statementThe days of MPs being judge and jury of their own pay, judge and jury of their own expenses, are over Nick Clegg, Lib Dem leader In full: Speaker's statement
Mr Martin 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. Meanwhile the Daily Telegraph is publishing its 13th day of stories about claims made by MPs, based on leaked receipts submitted to the Commons Fees Office.
Other measures announced by the Speaker included: The changes being debated on Wednesday - which would also stop claims for furniture, cleaning and stamp duty - are intended to be interim changes, until an independent review of allowances which is expected to propose changes in the autumn.
Mr Martin said on Tuesday 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. 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
  • With regards to accommodation, only rent, hotel bills, overnight subsistence, mortgage interest, council tax, utility charges and insurance will be allowed
  • 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
  • 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
  • With regards to accommodation, only rent, hotel bills, overnight subsistence, mortgage interest, council tax, utility charges and insurance will be allowed
  • 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
The announcement came just hours after Mr Martin told MPs he intended to stand down, so becoming the first Commons Speaker to be effectively forced out of office for 300 years. MPs targeted in Wednesday's Telegraph include Conservative James Gray, who reportedly claimed £2,000 for the future redecoration of his second home on the day his lease ended - he told the newspaper he had paid for "dilapidation caused by 10 years of occupation".
In a brief statement, he said he would resign on 21 June, with a successor set to be elected by MPs the next day. Labour MP Chris Mullin's claim - for £45 towards the licence fee for his black and white television - is contrasted with some of his colleagues' claims for expensive plasma screen TVs.
Mr Martin will also step down as an MP, prompting a by-election in his constituency of Glasgow North East. Liberal Democrat MP Phil Willis is accused of spending about £15,000 of public money on mortgage interest payments and refurbishing a flat in which his daughter now lives - he said she had never been a "permanent resident".
'Gentleman's club' 'Symbolic figure'
Earlier, Mr Brown told a press conference that Westminster could not continue to "operate like some gentlemen's club" in which MPs were "judge and jury" of "pay and rations". Labour MP Ian Davidson reportedly paid a family friend £5,500 to renovate his London flat and had reclining furniture worth £1,459 delivered to his constituency home in Glasgow - which he had claimed for the London flat.
He has described cabinet minister Hazel Blears' expenses claims as "totally unacceptable behaviour", after she failed to pay capital gains tax on the sale of one of her homes. He said the furniture was later driven to his London flat and he had sought permission to use the friend for renovations - which he said would have been cheaper than using a London firm.
The prime minister said the communities secretary had accepted it was wrong and paid back the money she had saved, but his comments were far from supportive. On Tuesday Mr Martin told MPs he intended to stand down, so becoming the first Commons Speaker to be effectively forced out of office for 300 years.
And pressed about her future on GMTV on Wednesday he again appeared to be lukewarm in her support for her. He had been under pressure after attacking MPs who had criticised his handling of the row and speculation has already switched at Westminster to who his successor might be.
Ms Blears has however received support from her constituency, with the local party saying she "will be our Labour candidate at the next General Election. We have full confidence in her". Shadow leader of the House Alan Duncan told BBC Radio 4's Today programme: "What is coming out of the mayhem of the last few weeks is that people are looking to the Speaker to be a figure who is much more than just ceremonial and administrative behind the scenes.
"They want him to be the symbolic figure for the sort of Parliament they are now demanding."
Mr Brown said on Tuesday that Westminster could not continue to "operate like some gentlemen's club".
Tory leader David Cameron said changing the rules and forcing MPs to pay back wrongfully-claimed expenses was not enough.Tory leader David Cameron said changing the rules and forcing MPs to pay back wrongfully-claimed expenses was not enough.
"What people really want is the chance to go out and put their cross in a box for the politicians they want to represent them in this parliament," he said."What people really want is the chance to go out and put their cross in a box for the politicians they want to represent them in this parliament," he said.
"That's why we say let's have a general election.""That's why we say let's have a general election."
Lib Dem leader Nick Clegg welcomed the changes, but said the public was looking at Westminster with "disgust and with dismay".Lib Dem leader Nick Clegg welcomed the changes, but said the public was looking at Westminster with "disgust and with dismay".
He added: "The days of MPs being judge and jury of their own pay, judge and jury of their own expenses, are over."He added: "The days of MPs being judge and jury of their own pay, judge and jury of their own expenses, are over."