Kelly Announces 'Radical Reform' of MPs Expenses

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No second home allowance for MPs within "reasonable commuting distance" of London

Sir Christopher Kelly has today announced details of his committee's proposals for a radical reform of MPs expenses which include:

• MPs will not be able to claim for mortgage interest payments on second homes. They will only be able to claim for rent or hotel stays. Existing mortgage arrangements to be valid for lifetime of next Parliament.
• Second home claims to be limited to basic claims such as utility, telephone and council tax bills.
• Designation of main and second homes to be bound by an objective test and "robustly" enforced by regulator.
• MPs who share a second home as partners should be entitled to claim one individual allowance plus an additional one-third.
• MPs within "reasonable commuting distance" of London will not be able to claim the new second homes allowance.
• MPs defeated at an election or deselected will get a pay-off equivalent to nine months' salary.
• MPs should meet the cost of their daily commutes themselves.
• New parliamentary regulator to have powers to demand information from MPs and seek repayment of expenses.

The new proposals will impact heavily on Brentford and Isleworth MP Ann Keen who has a much publicised second home in Westminster.

With constituencies as far away from Parliament as Reigate considered within reasonable commuting distance, Mrs Keen will no longer be able to claim for mortgage interest on the second home she shares with her husband and fellow MP Alan Keen. The couple will also only be able to claim one individual allowance plus an additional one-third for this property because it is shared.

Alan Keen MP is reported to be 'very very happy' with Sir Christopher Kelly's proposals even though he employs his son David as a senior member of his staff. Kelly ruled that family members could only be employed on salaries paid by the tax payer if they were selected for their position via a fair process and not simply because they were related.

 

November 7, 2009