04/11/2009

End Of MPs' Mortgage Claims Looms

The PM Gordon Brown has given his full backing to the proposed reform of MPs' expenses, outlined by Sir Christopher Kelly today.

Members of Parliament will no longer be allowed to claimed mortgage costs or employ family members, under the recommendations.

Sir Christopher told MPs his committee would be "watching closely", urging parliamentarians to accept the changes, and implement the new system by the next Commons recess.

Sir Christopher was drafted in by the government to look at the Westminster expenses process in the wake of damning media reports.

Resettlement grants given to MPs who voluntarily resign will be scrapped, but not until the election after next.

According to Sir Christopher, the Commons standards committee already has the power to stop payments to poorly behaved MPs, which he says should be utilised.

Regarding second homes and mortgage payments, Sir Christopher said the taxpayer should not fork-out for such "a valuable asset".

However, MPs who have a mortgage will continue to receive repayments until the closing of the next parliament.

Any 'capital gains' made from property should be "surrendered to the taxpayer", Sir Christopher said.

MPs are also set to lose their £10,400 a year communications allowance.

Sir Christopher backed the decision to exclude parliamentarians living in the 20 mile radius of London from the second home scheme.

Second homes claims will be reduced to rent, hotel payments and bills.

"Our proposals are reasonable and fair and bring Westminster into line with other walks of life and other legislatures," Sir Christopher said.

However, some MPs have called for a vote on the proposals, while relatives working in Whitehall have said they will fight to retain their jobs.

Commons Speaker John Bercow is expected to tell MPs not to try to "block, neuter or minimise reform".

(PR/BMcC)

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