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| Tory MP Stewart Jackson sued by expenses watchdog | Tory MP Stewart Jackson sued by expenses watchdog |
| (5 months later) | |
| A Conservative MP is being sued by parliament's expenses watchdog after refusing to pay £54,000 he is alleged to have made in capital gains on his publicly funded home. | A Conservative MP is being sued by parliament's expenses watchdog after refusing to pay £54,000 he is alleged to have made in capital gains on his publicly funded home. |
| Stewart Jackson, the MP for Peterborough, is facing the high court action by the Independent Parliamentary Standards Authority (Ipsa) after denying that he owes all of the money. | Stewart Jackson, the MP for Peterborough, is facing the high court action by the Independent Parliamentary Standards Authority (Ipsa) after denying that he owes all of the money. |
| The unprecedented legal case has been launched as 28 other MPs have agreed to repay almost £500,000 they are alleged to have made in profits after months of behind the scenes wrangling involving party whips and lawyers. Some MPs have claimed, off the record, that they are being victimised because of years of expenses abuses by their predecessors. | The unprecedented legal case has been launched as 28 other MPs have agreed to repay almost £500,000 they are alleged to have made in profits after months of behind the scenes wrangling involving party whips and lawyers. Some MPs have claimed, off the record, that they are being victimised because of years of expenses abuses by their predecessors. |
| The watchdog moved to ban the use of Commons expenses to pay mortgage interest in May 2010, in the wake of public fury about "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. | The watchdog moved to ban the use of Commons expenses to pay mortgage interest in May 2010, in the wake of public fury about "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 about £1m in allowances for mortgage interest during the period. Properties were formally valued in 2010 and 2012, and the MPs were given until 30 November to return a proportion of any gain. The process was delayed when some signalled that they were considering a legal challenge on the grounds that the watchdog had overstepped its powers. | Some 71 members received about £1m in allowances for mortgage interest during the period. Properties were formally valued in 2010 and 2012, and the MPs were given until 30 November to return a proportion of any gain. The process was delayed when some 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 Ipsa's legal proceedings were heavy-handed and disproportionate and were clearly intended to bully him into submission. | Jackson, a member of the public accounts committee, said Ipsa's legal proceedings were heavy-handed and disproportionate and were clearly intended to bully him into submission. |
| "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." | "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." |
| Jackson, who resigned as a junior minister in 2010 after voting against a three-line whip on an EU referendum, wrote that he would challenge the watchdog's claim that his family home – which he bought for £470,000 in December 2005 – increased in value by 20% at a time when he says house prices in the area were falling. | Jackson, who resigned as a junior minister in 2010 after voting against a three-line whip on an EU referendum, wrote that he would challenge the watchdog's claim that his family home – which he bought for £470,000 in December 2005 – increased in value by 20% at a time when he says house prices in the area were falling. |
| "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," he wrote. | "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," he wrote. |
| 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. |
| A spokesman for Ipsa said: "As he [Stewart Jackson] has been unwilling to pay the £54,000 due we have issued proceedings to recover the sum through the high court. | A spokesman for Ipsa said: "As he [Stewart Jackson] has been unwilling to pay the £54,000 due we have issued proceedings to recover the sum through the high court. |
| "One of the most damaging aspects of the expenses scandal was the practice where MPs got taxpayer support to own a second home. That is why we said we would stop this, and we have now done so." | "One of the most damaging aspects of the expenses scandal was the practice where MPs got taxpayer support to own a second home. That is why we said we would stop this, and we have now done so." |
| The biggest repayment was imposed on Welsh secretary David Jones, who has returned £81,446. Defence secretary Philip Hammond was charged £34,883.54 and environment secretary Owen Paterson repaid £7,75.05. Treasury minister David Gauke, responsible for overseeing Revenue and Customs, repaid £26,762.76, while universities minister David Willetts returned £7,730.74. | The biggest repayment was imposed on Welsh secretary David Jones, who has returned £81,446. Defence secretary Philip Hammond was charged £34,883.54 and environment secretary Owen Paterson repaid £7,75.05. Treasury minister David Gauke, responsible for overseeing Revenue and Customs, repaid £26,762.76, while universities minister David Willetts returned £7,730.74. |
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