Kelly: ban MPs' taxpayer-funded mortgages
Updated on 04 November 2009
MPs should be stopped from claiming mortgage interest and employing family members from the public purse, the standards watchdog recommends as part of a review into MPs' expenses.
Launching his much-leaked and long-awaited report, the chairman of the Committee on Standards in Public Life, Sir Christopher Kelly, said that the proposals were "fair and reasonable" and would bring Westminster into line with other walks of life and other legislatures.
He acknowledged that his wide-ranging proposals would mean "substantial change" for MPs and said that, where necessary, they should be phased in with a suitable period of transition.
A spokesman for Gordon Brown said that the prime minister accepts Sir Christopher's report "in full."
Conservative leader David Cameron also gave the report his full backing at prime minister's questions.
"Isn't it important today that we do accept in full Sir Christopher Kelly's report?," he said.
"Doesn't the PM agree with me that in accepting this report, today should mark an important day, a day when we say that from now and into the future, members of parliament should not vote on our pay, our expenses, our pensions, our terms of service, our resettlement or our expenses packages?
"Isn't that an important part of restoring faith in parliament, in politics, and in this House of Commons that all of us care about?"
The key recommendations include giving the new Independent Parliamentary Standards Authority (IPSA) the power to determine the pay and pensions of MPs as well as their expenses.
Claims for the mortgage interest should be brought to an end with "appropriate transitional provisions" of one more parliament, or for five years.
In future, MPs should only be able to claim for rent or hotel costs, while the expenses scheme should only cover council tax, utility bills, telephone line rental and calls, security, contents insurance and removals at the beginning and end of a tenancy.
The costs of cleaning, gardening, furnishings and other items would not be claimable.
The committee said that MPs with constituencies within "reasonable commuting distance" of parliament should no longer be able to claim for a second home at all.
It said the practice of MPs employing members of their families should be brought to an end by the end of the next parliament, or within five years.
The report said that there should be no further capital gains at public expense, and the controversial practice of "flipping" properties should no longer be possible.
Any capital gains made during the transitional period attributable to public support would have to be paid back to the taxpayer.
The committee said that only MPs who lose their seats or whose departure from parliament is "involuntary" should be entitled to claim the resettlement grant. Those who step down voluntarily should receive eight weeks' pay instead.
Removal of the grant should also be a sanction against MPs who are found to have "abused" the system.
The committee said that, in future, all expenses claims should be accompanied by receipts or other documentary evidence which should be published.
It did not recommend a ban on MPs taking outside employment such as journalism, but said that any such activity should be within "reasonable limits" and "transparent", with information available to voters at election time.
"The recommendations for change that we are publishing today aim to strike a balance - on the one hand ensuring that MPs are properly supported and fully reimbursed for necessary costs incurred in doing their important work, and on the other providing strong safeguards for the taxpayer to prevent the abuses of the past," Sir Christopher said.
"Our proposals are reasonable and fair and bring Westminster into line with other walks of life and other legislatures. They recognise the unique circumstances of an MP's life but are shorn of the special features which gave scope for exploitation."
MPs should also be prevented from being an MP at the same time as a member of a devolved administration - known as "double jobbing" - the committee said.
Sir Christopher said the recommendations should be implemented "in full" by the time of the next parliament and urged party leaders to ensure they were.
The committee's proposals met the three tests set of them of accountability, transparency and reduced cost, he said.
"I recognise that this will be a demanding timetable - there is a lot of work for the new regulatory body to complete - but I see no reason why it should not be achievable if the will and determination are there.
"It is important that they both should. This committee will be watching closely."
