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Labour MPs' future under review Labour MPs' future under review
(about 2 hours later)
Labour's disciplinary panel is due to discuss whether MPs under fire for expenses claims can seek re-election. Prime Minister Gordon Brown has vowed to take "all the action that is necessary" to discipline Labour MPs who have "misbehaved" over expenses.
A so-called Labour "star chamber" is to discuss whether MPs under fire for expenses claims can seek re-election.
It will decide if Margaret Moran, Elliot Morley, Ian Gibson and David Chaytor can stand again for Labour.It will decide if Margaret Moran, Elliot Morley, Ian Gibson and David Chaytor can stand again for Labour.
But it is not expected that the three member so-called "star chamber" will make a ruling at its first meeting. It came as Tory leader David Cameron ordered his MPs to talk to their constituents about their expenses.
Fresh reports in the Daily Telegraph suggest MPs broke the law by not paying tax on personal accounting, but Labour says MPs "honoured" their liabilities. Mr Brown insisted he was taking a "strong line" against alleged offenders and his aim was to "make sure that politics is something that is about service to the community and never about people serving themselves".
On the 20th day of allegations about MPs' expenses detailed in the newspaper, it reported that nine cabinet ministers and 30 junior ministers used allowances meant for the running of their offices to pay for personal tax advice. He said any MPs found to have "misbehaved" by the three-member disciplinary panel, set up by Labour's ruling National Executive Committee, "will be told they can not stand at the next election".
HM Revenue and Customs is understood to be reviewing MPs' claims as part of its general policy of "policing the tax rules... effectively across the board". Video link
The Telegraph, which has obtained the expenses claims of all 646 MPs, also revealed that Tory MP for Bromsgrove in Worcestershire, Julie Kirkbride, pays her sister a £12,000 salary for part-time clerical work - even though she lives more than 100 miles away from the constituency in Dorset. But the BBC understands that neither Mrs Moran nor Mr Morley will attend the panel's first meeting later on Wednesday.
In addition, it suggested that John Greenway, Tory MP for Ryedale, North Yorkshire, claimed £500 for petunias and fuchsia for his London flat. Both MPs had been asked to appear before the panel but the party can not force them to attend.
Later date The relationship between voters and politicians has changed forever because of these allegations Justice Secretary Jack Straw
Labour's three-member disciplinary panel was set up by the party's ruling National Executive Committee to quiz MPs whose claims have been scrutinised. The meeting is still going ahead but will be conducted by video link as it is no longer necessary for the panel members to be there in person. It will discuss the ground rules for its investigation.
The Conservatives have also set up an internal scrutiny panel to rule on MPs' expenses claims. Justice Secretary Jack Straw said the panel would "balance speed and fairness" but admitted it would not, in itself, restore public confidence which he said had been "unquestionably seriously damaged".
Prime Minister Gordon Brown has said any Labour MP who "defied" the rules will not be able to stand again. "In some ways, the relationship between voters and politicians has changed forever because of these allegations," he added.
He also hit back at suggestions Mr Cameron had taken the initiative on cleaning up the expenses system and reforming Parliament, arguing that Gordon Brown had proposed the "most significant and profound change in this area" with plans to end MPs' self-regulation.
But he added: "There will be days when the prime minister takes the initiative and days when David Cameron takes the initiative. That's politics."
'Ill health'
In its first meeting, the panel of senior NEC members - Cath Speight, Ann Black and Sir Jeremy Beecham - will begin considering the allegations against the MPs who have been referred to it.In its first meeting, the panel of senior NEC members - Cath Speight, Ann Black and Sir Jeremy Beecham - will begin considering the allegations against the MPs who have been referred to it.
Former Labour Party secretary David Gardner says the public are tired of the expression "within the rules"Former Labour Party secretary David Gardner says the public are tired of the expression "within the rules"
Mr Morley, MP for Scunthorpe and an ex-environment minister, claimed £16,000 in interest payments on a mortgage that had already been paid off. A statement issued by representatives of Ms Moran said she would not attend due to "ill health", but added that representation had been sent on her behalf.
He has apologised and said he repaid all of the money once he had discovered his mistake, but Mr Brown has suspended Mr Morley from the Parliamentary Labour Party and also suspended the Labour whip from him.
According to the Telegraph, Ms Moran - the Labour MP for Luton South - spent £22,500 treating dry rot at the coastal property in Southampton she had designated as her second home, even though it was a two-hour drive from Parliament and 100 miles from her constituency.According to the Telegraph, Ms Moran - the Labour MP for Luton South - spent £22,500 treating dry rot at the coastal property in Southampton she had designated as her second home, even though it was a two-hour drive from Parliament and 100 miles from her constituency.
Ms Moran has said she will pay the money back, but said she had stuck to the rules and acted in consultation with the Commons fees office.Ms Moran has said she will pay the money back, but said she had stuck to the rules and acted in consultation with the Commons fees office.
Mr Morley, MP for Scunthorpe and an ex-environment minister, claimed £16,000 in interest payments on a mortgage that had already been paid off.
He has apologised and said he repaid all of the money once he had discovered his mistake, but Mr Brown has suspended Mr Morley from the Parliamentary Labour Party and also suspended the Labour whip from him.
I think the best thing to do, and I've said this to all my MPs, is to get out with your constituents, to hold meetings, to listen to them, to talk to them David Cameron, Conservative leader
The Daily Telegraph said Dr Gibson claimed for a flat which his daughter and her partner lived in rent-free. It also claimed the Norwich North MP then sold it to them for less than he paid and well below market value.The Daily Telegraph said Dr Gibson claimed for a flat which his daughter and her partner lived in rent-free. It also claimed the Norwich North MP then sold it to them for less than he paid and well below market value.
Dr Gibson has insisted he acted within the rules but has offered to stand down at the next election if his constituents want him to.Dr Gibson has insisted he acted within the rules but has offered to stand down at the next election if his constituents want him to.
The case of Mr Chaytor will be considered by the panel at a later date.The case of Mr Chaytor will be considered by the panel at a later date.
The Telegraph said the MP for Bury North claimed nearly £13,000 for a mortgage he had already cleared.The Telegraph said the MP for Bury North claimed nearly £13,000 for a mortgage he had already cleared.
Mr Chaytor has apologised "unreservedly" for what had been "an unforgivable error in accounting procedures" and said he would arrange repayment to the Commons fees office immediately.Mr Chaytor has apologised "unreservedly" for what had been "an unforgivable error in accounting procedures" and said he would arrange repayment to the Commons fees office immediately.
'Confused' reply 'Rebuild trust'
In its latest revelations, the Daily Telegraph said that more than 40 government ministers were reimbursed a total of at least £25,000 for help with tax returns - but the paper said such fees were not tax-deductible. The Conservatives have launched their own scrutiny panel, which will decide if MPs have broken the rules and how much they should pay back.
But Mr Cameron said MPs who have made mistakes must say so.
He told BBC News: "I think the best thing to do, and I've said this to all my MPs, is to get out with your constituents, to hold meetings, to listen to them, to talk to them, to explain all of the circumstances of why we claimed what we claimed, why we did what we did".
He urged MPs to "hold up your hand if you made mistakes and got things wrong, and to start to rebuild trust in the political system, and in that link between the constituency and the MP".
He was speaking as the Tory MP, Julie Kirkbride, faces fresh scrutiny over her expenses with allegations she pays her sister £12,000 a year for clerical work - even though she lives more than 100 miles from her constituency in Bromsgrove, Worcestershire.
In its latest revelations, the Daily Telegraph, which has obtained the expenses claims of all 646 MPs, has also suggested that John Greenway, Tory MP for Ryedale, North Yorkshire, claimed £500 for petunias and fuchsia for his London flat.
And it turned the spotlight on MPs who claimed tax advice on their allowances.
It said that more than 40 government ministers were reimbursed a total of at least £25,000 for help with tax returns - but the paper said such fees were not tax-deductible.
It is unclear whether the MPs later paid any tax due, although Chancellor Alistair Darling said he had.It is unclear whether the MPs later paid any tax due, although Chancellor Alistair Darling said he had.
The costs of complying with the law are not an allowable expense against tax Revenue and Customs spokesmanThe costs of complying with the law are not an allowable expense against tax Revenue and Customs spokesman
The paper said MPs had been given specific guidance from the taxman in 2005 that advice on self-assessment tax returns could not be regarded as a tax-free expense and were in effect a "benefit in kind".The paper said MPs had been given specific guidance from the taxman in 2005 that advice on self-assessment tax returns could not be regarded as a tax-free expense and were in effect a "benefit in kind".
A Revenue and Customs spokesman told the BBC that it was a "general principle of tax law" that accountancy fees connected with personal tax returns were not deductible.A Revenue and Customs spokesman told the BBC that it was a "general principle of tax law" that accountancy fees connected with personal tax returns were not deductible.
"This is because the costs of complying with the law are not an allowable expense against tax," the spokesman added. "This rule applies across the board."
Cabinet ministers named by the Telegraph included Communities Secretary Hazel Blears, who said she did not have the relevant papers to hand to say what tax she paid.
Labour MPs have argued that tax advice relating to their work is a legitimate expense but the Tories say this is "completely wrong" and that any of the party's MPs charging the taxpayer for this will have to repay the money.Labour MPs have argued that tax advice relating to their work is a legitimate expense but the Tories say this is "completely wrong" and that any of the party's MPs charging the taxpayer for this will have to repay the money.
A statement issued by the Labour Party, on behalf of the MPs named by the Telegraph, said: "To the best of my knowledge I am satisfied that I have honoured all my tax liabilities and will continue to do so."
On Wednesday Downing Street said: "To the best of our knowledge, ministers do appear to have honoured their tax liabilities and will continue to do so.On Wednesday Downing Street said: "To the best of our knowledge, ministers do appear to have honoured their tax liabilities and will continue to do so.
"Obviously, we are in the process of checking whether ministers who are in this position are paying the tax that is due. We will obviously be making it clear to ministers that if there is any tax that has not been paid, it should be paid.""Obviously, we are in the process of checking whether ministers who are in this position are paying the tax that is due. We will obviously be making it clear to ministers that if there is any tax that has not been paid, it should be paid."