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Harman sets out expenses reforms Harman sets out expenses reforms
(about 1 hour later)
Commons leader Harriet Harman has set out reforms to MPs expenses she says will end the "gentlemen's club".Commons leader Harriet Harman has set out reforms to MPs expenses she says will end the "gentlemen's club".
She told MPs the move from self- regulation to external regulation was needed to "put the reputation of Parliament above reproach".She told MPs the move from self- regulation to external regulation was needed to "put the reputation of Parliament above reproach".
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.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.
The changes were backed by shadow Commons leader Alan Duncan.The changes were backed by shadow Commons leader Alan Duncan.
But Tory leader David Cameron, speaking earlier at prime minister's questions, said the only way to end the "paralysis" caused by the expenses scandal was to hold a general election.But Tory leader David Cameron, speaking earlier at prime minister's questions, said the only way to end the "paralysis" caused by the expenses scandal was to hold a general election.
'Chaos''Chaos'
In angry exchanges with Prime Minister Gordon Brown, Mr Cameron seized on remarks by Mr Brown in which he said an election would cause "chaos".In angry exchanges with Prime Minister Gordon Brown, Mr Cameron seized on remarks by Mr Brown in which he said an election would cause "chaos".
"The prime minister calls elections chaos. I call them change. Why can't we have one?," asked Mr Cameron."The prime minister calls elections chaos. I call them change. Why can't we have one?," asked Mr Cameron.
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 LIVE: Prime minister's questionsThe 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 LIVE: Prime minister's questions
Mr Brown said the Conservatives would cause "chaos" with public spending cuts, prompting Mr Cameron to say: "So there we have it - the first admission that you think you are going to lose."Mr Brown said the Conservatives would cause "chaos" with public spending cuts, prompting Mr Cameron to say: "So there we have it - the first admission that you think you are going to lose."
Mr Cameron has agreed with Mr Brown and Lib Dem leader Nick Clegg on interim changes to the expenses regime, which were unveiled by Speaker Michael Martin on Tuesday, after he announced he would be standing down.Mr Cameron has agreed with Mr Brown and Lib Dem leader Nick Clegg on interim changes to the expenses regime, which were unveiled by Speaker Michael Martin on Tuesday, after he announced he would be standing down.
Detailing the changes, Ms Harman said "most MPs are hard working, decent and honest" but reforms were needed to ensure "Parliamentary democracy is as strong and confident as it can be and also that the public recognise that to be the case".Detailing the changes, Ms Harman said "most MPs are hard working, decent and honest" but reforms were needed to ensure "Parliamentary democracy is as strong and confident as it can be and also that the public recognise that to be the case".
The changes being debated by MPs - 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.The changes being debated by MPs - 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.
'Completely open''Completely open'
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: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
Meanwhile Hazel Blears' future in the cabinet is in doubt after Mr Brown said her claim was "totally unacceptable". Meanwhile, Hazel Blears has insisted she will be carrying on with her job despite Mr Brown's remark that her expenses claim was "totally unacceptable".
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.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.
Speaking in her Salford constituency, Ms Blears said comments by the prime minister's spokesman that she was doing a "good job" showed that Mr Brown had "full confidence" in her.
'Full confidence''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.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".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 Daily Telegraph has, meanwhile, published further revelations about MPs' expenses claims.The Daily Telegraph has, meanwhile, published further revelations about MPs' expenses claims.
MPs targeted 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".MPs targeted 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".
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.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.
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".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".
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.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 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.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.
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.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.
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.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.