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MPs' mortgage claims 'should end' MPs' mortgage claims 'should end'
(20 minutes later)
MPs should be banned from claiming towards mortgages and employing relatives at public expense, a review of MPs' expenses recommends.MPs should be banned from claiming towards mortgages and employing relatives at public expense, a review of MPs' expenses recommends.
Mortgage claims should be stopped after an "appropriate transitional" period and employing relatives should be phased out within five years, it says.Mortgage claims should be stopped after an "appropriate transitional" period and employing relatives should be phased out within five years, it says.
Sir Christopher Kelly's committee was asked to overhaul the much criticised system after the expenses scandal. Sir Christopher Kelly also warned MPs to accept his proposals in full and implement them by the next Parliament.
He said they had taken a "cold, hard look at what went wrong before". "This committee will be watching closely," he warned.
But there are concerns MPs will make attempts to water his findings down. Sir Christopher's committee was asked to overhaul the much criticised expenses system after the expenses scandal and said they had taken a "cold, hard look at what went wrong before".
Some MPs want a vote on proposals while some relatives who work for them say they will fight to keep their jobs. Capital gains
'New dawn' It has also, as expected, recommended that generous resettlement grants for MPs who voluntarily step down will be stopped - but not before the next general election.
Sir Christopher has also, as expected, recommended that generous resettlement grants for MPs who voluntarily step down will be stopped - but not before the next general election.
KEY PROPOSALS MPs to claim for rent not mortgagesBan on employing relativesBan on MPs near London claiming for second homeEnd to £25-a-day subsistence claimsReduced resettlement grantsReduced travel claims At-a-glance: Reform plans Will MPs accept expenses reforms?
In future MPs will get eight weeks' pay instead - under the current system some long-serving MPs can get up to £64,000.In future MPs will get eight weeks' pay instead - under the current system some long-serving MPs can get up to £64,000.
KEY PROPOSALS MPs to claim for rent not mortgagesBan on employing relativesBan on MPs near London claiming for second homeEnd to £25-a-day subsistence claimsReduced resettlement grantsReduced travel claims At-a-glance: Reform plans Will MPs accept expenses reforms?
Opening his remarks he said leaked proposals had not come from his committee and he understood MPs who had not seen the report in its entirety must have been upset.Opening his remarks he said leaked proposals had not come from his committee and he understood MPs who had not seen the report in its entirety must have been upset.
On mortgages he said MPs should not expect "to acquire a valuable asset at public expense" - but MPs with mortgages should continue to get support for the lifetime of the next Parliament.On mortgages he said MPs should not expect "to acquire a valuable asset at public expense" - but MPs with mortgages should continue to get support for the lifetime of the next Parliament.
However he said any "capital gains" on the property over that time should not be kept by MPs. However he said any "capital gains" on the property over that time should be "surrendered to the taxpayer".
He said that he had had assurances in the summer from Gordon Brown, David Cameron and Nick Clegg that they would accept his proposals in full - as long as they met three tests of reduced costs, increasing transparency and increasing accountability.
Tests 'met'
He said it was clear that the tests "have all been met". He added that there was a risk, as time went by, that "some may be thinking of distancing themselves from earlier expressed determination to implement" his report.
"That would be an error," he warned.
POLITICAL EDITOR'S VIEW From BBC political editor Nick Robinson: A skim read of the document just published reveals two surprises alongside confirmation of the tough new regime on second homes and employing family members.
Kelly rejects the cry of many Labour MPs that MPs should be barred from having other jobs. He also says that the new independent regulator should set MPs pay and pensions. For those fearing that politics may become a rich man's game this will be some comfort. To those who fear snouts in the trough it will be a source of real concern
"The damage that has been done ... has been very considerable. I don't believe the trust in those who govern us will be restored unless those in authority show leadership and determination."
Some MPs want a vote on the proposals while some relatives who work for them say they will fight to keep their jobs.
Commons Leader Harriet Harman will deliver a statement on Sir Christopher's report at 1230 GMT, following prime minister's questions.Commons Leader Harriet Harman will deliver a statement on Sir Christopher's report at 1230 GMT, following prime minister's questions.
The BBC understands that Commons Speaker John Bercow will also tell MPs not to try to "block, neuter or minimise reform".The BBC understands that Commons Speaker John Bercow will also tell MPs not to try to "block, neuter or minimise reform".
'No backsliding'
BBC political editor Nick Robinson says the Speaker is "determined this will be a day which is seen as ushering in a new dawn for MPs and not one in which they are seen to protect themselves".
A new regime can only become law if it is adopted by the newly created Independent Parliamentary Standards Authority, after another period of consultation - so is not likely to happen until after the next election.A new regime can only become law if it is adopted by the newly created Independent Parliamentary Standards Authority, after another period of consultation - so is not likely to happen until after the next election.
'Mixed signals'
But Lib Dem leader Nick Clegg told the Telegraph there must be no "backsliding" and letting an arms-length agency decide which reforms to take forward would be "ludicrous".
EXPENSES: THE STORY SO FAR MPs are allowed to claim expenses for running a second home but there was much uproar in May when receipts and details of what they had been claiming for were leaked to a newspaper.EXPENSES: THE STORY SO FAR MPs are allowed to claim expenses for running a second home but there was much uproar in May when receipts and details of what they had been claiming for were leaked to a newspaper.
Among them were claims for expensive TVs and furniture, MPs who claimed for more than one property by "flipping" the designated second home and others who over-claimed for mortgages or services.Among them were claims for expensive TVs and furniture, MPs who claimed for more than one property by "flipping" the designated second home and others who over-claimed for mortgages or services.
Many MPs have announced they will be standing down, some have already repaid claims in response to constituents' anger.Many MPs have announced they will be standing down, some have already repaid claims in response to constituents' anger.
Party leaders pledged to change the system and Sir Christopher Kelly's independent review is now unveiling its recommendations.Party leaders pledged to change the system and Sir Christopher Kelly's independent review is now unveiling its recommendations.
The PM also asked an independent auditor, Sir Thomas Legg, to go over past claims again, to ensure money had been paid out properly. MPs have been getting his letters saying how much they should pay back. class="" href="/2/hi/uk_news/politics/8341461.stm">Academic 'to reform MP expenses' The new Independent Parliamentary Standards Authority will decide whether or not to adopt the Kelly recommendations.
But Lib Dem leader Nick Clegg told the Telegraph there must be no "backsliding" and letting an arms-length agency decide which reforms to take forward would be "ludicrous".
He said the authority should make clear immediately "that it sees its role as implementing Sir Christopher's proposals in their entirety".He said the authority should make clear immediately "that it sees its role as implementing Sir Christopher's proposals in their entirety".
He wrote: "We would be committing a spectacular own goal if we were seen as getting involved in monkey business by trying to wriggle out of the straitjacket that Sir Christopher seeks to impose." The review follows the MPs' expenses scandal in which MPs' claims for items including duck islands and moat cleaning, for mortgages that were already paid off and the practice of "flipping" designated second homes were exposed.
He also accused the government of sending out "mixed signals" on the reforms - after Commons leader Harriet Harman told the BBC it would not be "fair" to sack relatives who already work for MPs. The government has said it will be up to the new authority to implement any changes to the expenses regime.
It seems that many of the changes, if adopted by the new standards authority, would be likely to be phased in over several years. More than 100 MPs are already expected to stand down at the next general election. But Mr Clegg accused the government of sending out "mixed signals" on the reforms - after Commons leader Harriet Harman told the BBC it would not be "fair" to sack relatives who already work for MPs.
The review by Sir Christopher Kelly's Committee on Standards in Public Life, comes after the MPs' expenses scandal in which MPs' claims for items including duck islands and moat cleaning, for mortgages that were already paid off and the practice of "flipping" designated second homes were exposed. The authority has only just been set up and does not yet have a chairman or management board, although the BBC understands that Professor Sir Ian Kennedy, an expert in medical ethics, is to be named as its chairman.
Bell's warning KELLY REPORT class="" href="http://news.bbc.co.uk/1/shared/bsp/hi/pdfs/04_11_09_mpsexpenses.pdf">Committee on Standards in Public Life: MPs' expenses and allowances [976 KB] Most computers will open this document automatically, but you may need Adobe Reader href="http://www.adobe.com/products/acrobat/readstep2.html">Download the reader here
The government has said it will be up to the new authority to implement any changes to the expenses regime - but some MPs want a vote on the reforms.
IPSA has only just been set up and does not yet have a chairman or management board, although the BBC understands that Professor Sir Ian Kennedy, an expert in medical ethics, is to be named as its chairman.
Martin Bell, the former BBC correspondent who stood as an anti-sleaze MP in 1997, questioned whether the reforms would be implemented by the new body which can be "appointed by MPs and can be dismissed by MPs".Martin Bell, the former BBC correspondent who stood as an anti-sleaze MP in 1997, questioned whether the reforms would be implemented by the new body which can be "appointed by MPs and can be dismissed by MPs".
But Eve Burt, who works for her husband the Conservative MP Alistair Burt, told the BBC any changes to staffing arrangements should only apply to new MPs - in line with pension changes in other professions.But Eve Burt, who works for her husband the Conservative MP Alistair Burt, told the BBC any changes to staffing arrangements should only apply to new MPs - in line with pension changes in other professions.
She added: "There are only about 200 of us that currently work out of the 3,000 staff that they have in Parliament and it would be nice if we were allowed to keep our jobs until our spouses... leave Parliament."She added: "There are only about 200 of us that currently work out of the 3,000 staff that they have in Parliament and it would be nice if we were allowed to keep our jobs until our spouses... leave Parliament."