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Blears lives to fight another day

Updated on 20 May 2009

Source ITN

The expenses furore has claimed two more Tory scalps while Communities Secretary Hazel Blears has lived to fight another day.

Gordon Brown has twice branded the behaviour of Ms Blears, the MP for Salford, "unacceptable" after she avoided £13,000 in capital gains tax by saying her London flat was her main residence after designating it her second home for claims purposes.

Meanwhile, Tories Sir Peter Viggers and Anthony Steen have announced they are stepping down over their expenses, joining Douglas Hogg who last week said he was going over the inclusion of a bill for the cleaning of his moat.

A senior Tory source said David Cameron is "absolutely furious" about Sir Peter's claims - including one for a £1,645 floating "duck island" for his pond - which were published by The Daily Telegraph. He was presented with an ultimatum: do not stand again or be stripped of the party whip.

And Totnes MP Anthony Steen, who claimed more than £80,000 from the taxpayer over four years for work at his £1 million Devon mansion, has said he is quitting as he does not want to "distract" the party from its fight against Labour.

Elsewhere, Tory whip Bill Wiggin has blamed an administrative error for £11,000 in claims for mortgage interest on the wrong home - insisting he had not benefited financially. The Telegraph said he had declared his constituency home as his second home but claimed mortgage payments that matched his London property.

Last week, Ms Blears apologised for her expenses claims and handed over a cheque for £13,000. But Mr Brown earlier repeated the "unacceptable" comment, adding that it was "difficult" that a member of his Cabinet had been caught up in the scandal over parliamentary allowances.

Challenged over her actions, Mr Brown said: "Hazel didn't break any rule or law. But what she did was unacceptable. She came to me, we talked about it and she paid back the money."

Pressed on the issue of whether Ms Blears should be sacked, Mr Brown said: "I have already suspended - I am the only party leader to have done so - I have suspended two Members of Parliament from the Parliamentary Labour Party, I have told a minister to step down because of difficulties and irregularities that have got to be investigated in his affairs.

"I am the only party leader in these last few weeks to have actually suspended and asked people to step down. If it became necessary to do so for other people, I will not resile from doing so. We will take all the action that is necessary."

Later, Mr Brown's spokesman insisted he had "full confidence" in Ms Blears.

Back in Salford, Ms Blears said: "The Prime Minister said that I have acted entirely within the rules, as I have always said. But I also recognise that acting within the rules does not cut it with the public and that is why I paid the money."

Ms Blears insisted she was focused on campaigning ahead of the local and European elections, and said voters in her constituency "know the person I am". She added: "People obviously are angry, not just here in Salford, they are angry across the country."

The Telegraph has also reported that former Cabinet minister Ruth Kelly claimed thousands of pounds for flood damage to her second home despite the building being insured. She has already announced she is stepping down at the next General Election.

And in another headache for Mr Brown, Luton South MP Margaret Moran has been referred to a special Labour Party panel which will consider whether she should be deselected after claiming £22,500 to treat dry rot at a property in Southampton.

Former environment minister Eliot Morley has already stepped aside from chairing the Commons Energy and Climate Change Committee, while allegations are considered that he claimed thousands of pounds for a mortgage that had already been paid off.

Earlier, Deputy Prime Minister Harriet Harman detailed plans for consultation to start on the new Parliamentary Standards Authority suggested by Mr Brown and approved in principle at cross-party talks on Tuesday night.

She told MPs it would "end the gentlemen's club approach where we set and enforce our own rules".

© Independent Television News Limited 2009. All rights reserved.

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