PM in retreat over MP expenses
Monday, 27 April 2009 5:26 PM
By politics.co.uk staff
Gordon Brown has dumped his idea of a daily 'clocking-in' payment for MPs.
The government is due to table its motion including the other proposals in the prime minister's scheme for clearing up MPs' allowances shortly.
It is not expected to include the changes to the second homes allowance, however, after opposition parties made clear they would help defeat Mr Brown on the issue.
Downing Street said this afternoon there had been "ongoing consultation and discussion with the other parties" and that the objective had always been to build "consensus".
The principles from which the government would not shift were that any system would need to be linked to attendance and be transparent.
The move came after Lib Dem leader Nick Clegg outlined his own plans to tackle the issue.
Mr Clegg wants to stop MPs making a profit from mortgages funded by public money, with taxpayers' getting a share of any capital appreciation in the value of the property.
"If it is an interest-only mortgage, the taxpayer would get 100 per cent of the capital gain; if it is a capital and interest mortgage, the taxpayer would get the capital gain in proportion to the share of total mortgage costs paid," Mr Clegg explained.
The allowance would also be replaced with expenses for only basic utility bills, council tax and rent or mortgage interest, under the plans.
The Tory plan is not dissimilar to Mr Clegg's. It would see the second home allowance replaced by a transparent parliamentary allowance used only for rent, utility bills, council tax and mortgage interest.
No MP living within 20 miles of London eligible for the new allowance.
Sir Christopher Kelly, chairman of the committee on public standards, is currently conducting an in-depth investigation of the system.
Interim proposals which MPs will vote on this Thursday will be replaced by the system put in place following Sir Christopher's final recommendations.
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