Nick Clegg calls for MP's expenses overhaul

Liberal Democrat leader Nick Clegg has called for an overhaul of the MP's expenses system after police admitted they could not prosecute Conservative MP Derek Conway.

Mr Conway paid his son almost £40,000 of public funds as a researcher – but could not provide any evidence that he had done any work.

Scotland Yard said it would not be able to pursue the case against Mr Conway due to a "lack of systems in this case to account for MPs' expenses".

"The public have the right to expect that their money is being properly accounted for," Mr Clegg said. "The Speaker's review of expenses must provide the basis for fundamental changes to the system of MPs' allowances."

The House of Commons speaker Michael Martin has promised an inquiry into claims of system abuse.

Mr Martin himself has been the centre of a claims row over expenses claimed by his wife, who claimed expenses for official business which turned out to be a personal errand.