THE DECADES-OLD expenses regime enjoyed by British House of Commons MPs is to be radically overhauled, including bans on allowances for mortgages and strict curbs on rent and living costs.
The recommendations from a committee led by Sir Christopher Kelly have been accepted in full by prime minister Gordon Brown, Conservative leader David Cameron and Liberal Democrat Nick Clegg. However, the rules, which will come into force by spring, have led to fury from many MPs. Attempts by one Conservative backbencher to force the report to a House of Commons vote were rejected.
Under the new system, MPs will be able to claim £120 per night for hotels – below the average week-day rate in central London; and £1,250 per month for rent, which will force some of them to quit more expensive properties.
The existing contribution of £22,000 a year for MPs with mortgages on London properties should end for new MPs elected next year, and wind down over the next five years for those currently receiving it. Any existing MP who continues to claim it would be required to surrender any profit made to the treasury if they sell the property, though any losses incurred would be the MP’s own responsibility.
MPs will be barred from shifting their main place of residence between their constituency and London homes – “flipping” – which has allowed some to make tax-free gains on property sales.
The daily food allowance should stand at £25, require receipts and be paid only to those staying in hotels, while MPs should no longer be able to claim for the costs of fitting out London homes.
Rejecting arguments made by some, including the prime minister last week, that the changes could bar poorer people from becoming MPs, Mr Kelly said that “should be sorted out through higher pay, not allowances. Our proposals are reasonable and fair and bring Westminster into line with other walks of life. They recognise the unique circumstances of an MP’s life but are short of the special features which give rise for exploitation.”
MPs will be barred from employing spouses or children within five years, though this is set to be contested by the 200-odd family members working in the House of Commons. The recommendations will be implemented by the Independent Parliamentary Standards Authority, though MPs, who earn £63,000 a year, were furious when they heard the body’s chairman, Sir Ian Kennedy, will be paid £100,000 a year.