Brown launches surprise MP expenses reform
By Alex Stevenson
Gordon Brown and Harriet Harman have unexpectedly announced sweeping reforms of MPs’ expenses system.
Abolishing the second home allowance, scrapping the distinction between inner and outer London constituencies and making all MPs’ staff centrally employed are among the proposals.
Releasing a video this morning on YouTube, Mr Brown said he would introduce “urgent” interim plans for making allowances simpler and less generous.
And in a written ministerial statement to the Commons, leader of the House Ms Harman outlined the plans to restore confidence in the allowance regime.
Second home allowance would be replaced with a flat daily rate for MPs attending parliament, basing their allowance on “actual attendance in Westminster”.
This daily rate would be replaced by a London supplement for those living “within reasonable distance of Westminster”. Although it has not yet been determined what this is, the prime minister’s spokesman said this was “not necessarily” limited to the old GLA area.
Ministers who live in grace-and-favour homes would not receive the new allowance but would have to continue paying council tax and other taxes “on the benefit of living in this accommodation.
The proposals are expected to be voted on by the Commons in the next few weeks, with a view to being introduced this summer. Downing Street said the expectation was there would be a free vote, but that the proposals had been unanimously backed by Cabinet this morning.
The government has insisted today’s announcements are for interim proposals. An ongoing review by Sir Christopher Kelly will determine the long-term solution to these issues, as before.
Opposition leaders, who had previously been offered a meeting on the issue by the prime minister, will receive an invitation from Mr Brown to discuss the proposals today.
“They can put down any amendments as they see fit,” the prime minister’s spokesman added.
Under the interim plans all MPs’ staff would become direct employees of the House of Commons, although they would continue to be appointed by MPs.
Receipts would be required for every other transaction – for office costs, travel and communications – including those under £25.
And – in an unprecedented move – MPs with a second source of income would be forced to declare every payment received “with a full description of who paid and what for”.
Ms Harman’s statement concluded: “The committee on standards in public life will report their views in due course, which of course we will consider seriously, but we should implement as many interim changes as possible without delay.”
Tory leader David Cameron welcomed the announcement.
“This is a big U-turn by the prime minister,” he said.
“We had been calling for a meeting. We now have one. We called for a ban on ministers claiming second home allowances when they enjoy a grace and favour home. He is now proposing this. We argued MPs’ staff should be directly employed. He is now proposing this.”
The Scottish National party welcomed the statement but questioned the timing.
The party’s Westminster leader, Angus Robertson, said: “This announcement must be the first example of a prime minister trying to overshadow his government’s own Budget statement.
“Reform of parliamentary allowances is long overdue, but Gordon Brown’s timing looks like a cynical attempt to distract attention away from Labour’s £15 billion Budget cuts bombshell.”
The government hopes to implement the proposals by July 1st.
