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MPs told to repay £500,000 profits from publicly funded homes MPs told to repay £500,000 profits from publicly funded homes
(5 months later)
Members of parliament have been asked to repay almost £500,000 they are alleged to have made in profit from publicly funded homes, the MPs' expenses watchdog has disclosed.Members of parliament have been asked to repay almost £500,000 they are alleged to have made in profit from publicly funded homes, the MPs' expenses watchdog has disclosed.
The Independent Parliamentary Standards Authority (Ipsa) announced that 70 politicians had agreed to repay the sums made as "potential capital gain". But one MP has resisted pressure and is planning to mount a legal challenge against the body's ruling. The Conservative MP Stewart Jackson has been asked to repay £54,000 in relation to a property in his Peterborough constituency.The Independent Parliamentary Standards Authority (Ipsa) announced that 70 politicians had agreed to repay the sums made as "potential capital gain". But one MP has resisted pressure and is planning to mount a legal challenge against the body's ruling. The Conservative MP Stewart Jackson has been asked to repay £54,000 in relation to a property in his Peterborough constituency.
The announcement follows months of behind-the-scenes wrangling between MPs, their whips and lawyers over the payments. Some MPs have claimed, off the record, that they are being victimised because of years of expenses abuses by previous generations of MPs.The announcement follows months of behind-the-scenes wrangling between MPs, their whips and lawyers over the payments. Some MPs have claimed, off the record, that they are being victimised because of years of expenses abuses by previous generations of MPs.
The watchdog moved to ban the use of Commons expenses to pay mortgage interest in May 2010, in the wake of public fury over "flipping" and other abuses.The watchdog moved to ban the use of Commons expenses to pay mortgage interest in May 2010, in the wake of public fury over "flipping" and other abuses.
Transitional arrangements were put in place permitting MPs elected before 2010 to keep claiming the money up to last August – as long as they agreed to return any potential capital gain. Some 71 members received around £1m in allowances for mortgage interest during the period.Transitional arrangements were put in place permitting MPs elected before 2010 to keep claiming the money up to last August – as long as they agreed to return any potential capital gain. Some 71 members received around £1m in allowances for mortgage interest during the period.
Properties were formally valued at the beginning and the end, and the MPs were given until 30 November to return a proportion of any gain.Properties were formally valued at the beginning and the end, and the MPs were given until 30 November to return a proportion of any gain.
The authority ruled that it would consider a longer repayment schedule – possibly extending to 2015 – if returning cash quickly would "create hardship".The authority ruled that it would consider a longer repayment schedule – possibly extending to 2015 – if returning cash quickly would "create hardship".
The process was delayed when a number of MPs signalled that they were considering a legal challenge on the grounds that the watchdog had overstepped its powers.The process was delayed when a number of MPs signalled that they were considering a legal challenge on the grounds that the watchdog had overstepped its powers.
Jackson, a member of the public accounts committee, said he was resisting legal action from the authority and was mounting his own legal challenge to the watchdog's claim that his family home had increased in value by 20% at a time when he says house prices in the area were falling.Jackson, a member of the public accounts committee, said he was resisting legal action from the authority and was mounting his own legal challenge to the watchdog's claim that his family home had increased in value by 20% at a time when he says house prices in the area were falling.
In a statement, the Peterborough MP said: "Ipsa's legal proceedings are heavy-handed and disproportionate and are clearly intended to bully me into submission. All British citizens are entitled to seek legal adjudication if the state's actions are unfair or possibly illegal and so I will be forcefully resisting their precipitous litigation. The essence of the dispute is my challenge of the valuations of 2010 and 2012.In a statement, the Peterborough MP said: "Ipsa's legal proceedings are heavy-handed and disproportionate and are clearly intended to bully me into submission. All British citizens are entitled to seek legal adjudication if the state's actions are unfair or possibly illegal and so I will be forcefully resisting their precipitous litigation. The essence of the dispute is my challenge of the valuations of 2010 and 2012.
"Ipsa are seeking a cash sum on a so-called capital gain 'profit' on my family home, in which I live and have not sold. The money which Ipsa is demanding retrospectively is more than the total amount I received when I was claiming mortgage interest and the property is now valued at less than we purchased it for in 2005."Ipsa are seeking a cash sum on a so-called capital gain 'profit' on my family home, in which I live and have not sold. The money which Ipsa is demanding retrospectively is more than the total amount I received when I was claiming mortgage interest and the property is now valued at less than we purchased it for in 2005.
"Their assumption is that the value of my property rose by almost 20% over two years whilst house prices fell by 3% in my constituency in the same period."Their assumption is that the value of my property rose by almost 20% over two years whilst house prices fell by 3% in my constituency in the same period.
"At my own expense, I have paid for an accurate recent expert valuation and I have made a reasonable offer to Ipsa to settle the matter and reduce the legal costs which will have to be met by the taxpayer. My valuation recognises the need for proper recompense to be paid to the taxpayer to reflect their support for my housing costs between 2010 and 2012, in order to fulfil my duties as both a London-based legislator and a constituency MP."At my own expense, I have paid for an accurate recent expert valuation and I have made a reasonable offer to Ipsa to settle the matter and reduce the legal costs which will have to be met by the taxpayer. My valuation recognises the need for proper recompense to be paid to the taxpayer to reflect their support for my housing costs between 2010 and 2012, in order to fulfil my duties as both a London-based legislator and a constituency MP.
"Ipsa have negotiated with 70 other MPs in a secretive and arbitrary manner but in respect of my case, regrettably, they have refused to negotiate. I am merely seeking fair play and consistency and will pursue legal action to receive it.""Ipsa have negotiated with 70 other MPs in a secretive and arbitrary manner but in respect of my case, regrettably, they have refused to negotiate. I am merely seeking fair play and consistency and will pursue legal action to receive it."
Repayment deals have now been struck with 70 of the MPs, with only Jackson's case still to be settled.Repayment deals have now been struck with 70 of the MPs, with only Jackson's case still to be settled.
In total, the 71 MPs claimed £926,159.75 of taxpayer cash to cover mortgage interest over the 15-month period, with the largest claims made by Labour's Michael Connarty – who received £34,168 relating to a property in London of which he has returned £6,833 – and Jackson, who received £32,494.In total, the 71 MPs claimed £926,159.75 of taxpayer cash to cover mortgage interest over the 15-month period, with the largest claims made by Labour's Michael Connarty – who received £34,168 relating to a property in London of which he has returned £6,833 – and Jackson, who received £32,494.
Repaid monies include £81,446 paid by the Tory MP for Clwyd West, David Jones, and £61,403 returned by the DUP East Londonderry MP, Gregory Campbell – both for properties in London.Repaid monies include £81,446 paid by the Tory MP for Clwyd West, David Jones, and £61,403 returned by the DUP East Londonderry MP, Gregory Campbell – both for properties in London.
In some cases, such as that of Jackson, MPs were asked to repay more than they had received because the value of their property was calculated to have risen by more than the cost of the interest payments.In some cases, such as that of Jackson, MPs were asked to repay more than they had received because the value of their property was calculated to have risen by more than the cost of the interest payments.
Some 42 MPs were found to have made no profit on their taxpayer-funded homes during the period and were asked to repay nothing. Among those not asked for repayments were the deputy prime minister, Nick Clegg, who claimed £9,104 on a home in his Sheffield constituency, and David Miliband, who claimed £5,903 on a property in his former seat of South Shields.Some 42 MPs were found to have made no profit on their taxpayer-funded homes during the period and were asked to repay nothing. Among those not asked for repayments were the deputy prime minister, Nick Clegg, who claimed £9,104 on a home in his Sheffield constituency, and David Miliband, who claimed £5,903 on a property in his former seat of South Shields.
But 29 were told by Ipsa to hand over a total of £484,828.49. Most of them have now paid the sums in full, but in seven cases agreement has been reached to pay by instalment, with final payments due by April 2015.But 29 were told by Ipsa to hand over a total of £484,828.49. Most of them have now paid the sums in full, but in seven cases agreement has been reached to pay by instalment, with final payments due by April 2015.
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