Michael Portillo
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The House of Commons is headed for catastrophe. When the details of members’ expense claims are published, as they are bound to be under freedom of information laws, the public will be appalled. They will see that MPs help themselves to allowances as thinly disguised bonuses.
The fact that most members will have broken no rule will simply add to voters’ outrage. In a few cases, no doubt, the revelations will end parliamentary careers - if the claims appear indefensible, as Derek Conway’s payments to his son were.
The disaster has been brewing for many years. When I entered the Commons, helpful old hands would take me aside to explain what I could claim, indeed what I should claim for the sake of solidarity. It was understood that MPs’ salaries were held artificially low by the pressure of public opinion and that the range of allowances existed to make up for the deficiency.
It was a different era. After many years in which governments had restrained pay throughout the economy, almost every employer frustrated incomes policy by devising payments and benefits that were not classified as salary. It was the heyday of the company car, lavish expense accounts and long boozy lunches.
Outside parliament the world has changed. Taxation of benefits has led employers once more to consolidate perks into salary. The pressures of competition and the bottom line have shortened the lunches and squeezed out the booze. Management accounting systems have enabled bosses to control expense accounts more tightly. As the Information Tribunal commented, when ordering that the claims of 14 MPs be published, the “laxity” of Commons rules is “very different” from practice in the private sector. Most significantly, the public today expects higher standards than before in public life and greater transparency.
The Commons has failed to react to changing times. Indeed, it has been moving backwards. MPs have pushed against the restrictions on what they could claim. The rules are set down in broad resolutions of the House, so there is a presumption that anything that is not specifically excluded must be permissible.
For example, about 20 years ago MPs won the argument that the second home allowance should cover mortgage interest and not just rent. It was regarded as a triumph at the time, but it is a victory that many may now regret. The public will find it hard to understand why a member with a seat in the home counties, for example, needs a second home at all, especially now that the House rarely sits late into the night. Still less will the public comprehend why the taxpayer has enabled the member to make a huge capital gain, perhaps on a house that is miles from the constituency.
Even if the Commons had better appreciated the pace of change taking place around it and the growing threat to its cosy ways from freedom of information petitions, it is difficult to see how it could have responded effectively. It lacks leadership and organisation. Members are regarded as being self-employed.
The House authorities – chiefly its civil servants – have tried to introduce systems, for example, to standardise payments to secretaries. However, there are and should be limits to how much MPs are standardised. They are not the employees of a government department but the servants of their electors.
Still, in the absence of internal leadership, the government has often imposed its will. It uses its muscle to restrain the Commons from voting itself egregious pay increases. Even so, no government has taken on the issue of MPs’ allowances. To do so might have been constitutionally outrageous. It would have met massive resistance from members and would probably have resulted in defeat. However, the lack of reform will now bring the entire parliamentary system into disrepute and the government, as well as the Commons, will be damaged.
It would be unfair to attack the Speaker for not preempting this scandal. It is not the Speaker’s role to initiate reform. However, Michael Martin, the present Speaker, is unfortunately entangled in the mess. His wife’s expense claims for taxi rides have been held up to the light. His press spokesman has resigned after being wrongly briefed and misleading the media. Martin has given the impression of being against transparency – or at least slow to move.
The Commons made an error in choosing a Labour Speaker in succession to Betty Boothroyd (also Labour) during a Labour government. A Speaker chosen from the opposition party is less likely to be suspected of being a government stooge.
Martin has never performed with fiery independence and has lacked the confidence and authority of his predecessor. The House cannot turn to him to lead it into a new era of transparency. He has the instincts of an old Labour fixer and this crisis demands quite different skills.
It is most unusual for the Speaker to be criticised in the media. That, too, is a sign of changing times. Following the unfavourable press comments on his expense claims, the Commons roared in approval when he next entered the chamber and the Speaker beamed back with pleasure. The outside world might interpret both reactions as signalling that the Commons is an insiders’ club contemptuous of public opinion.
Voters will be incensed too by the £1.7m refurbishment of the Speaker’s official home. But that is a different issue. It requires maintaining with the rest of the historic Palace of Westminster and all such work is necessarily expensive. It seems unlikely that Speaker Martin will remain in the post to enjoy it for long.
Last week’s decision by the House authorities (the Speaker and senior members) to appeal to the High Court against publishing the 14 specimen cases looks desperate. It was, in any case, another example of hugger-mugger policy-making.
Mark Oaten, the Liberal Democrat MP who is one of the 14 MPs singled out by campaigners, complained that he had not been consulted about the appeal. It was announced outside the House by a spokeswoman who is not an MP. When David Winnick, the Labour member, asked in the House about the grounds for the appeal, the Speaker told him that the matter was now sub judice and the Commons could not discuss it.
Evidently the authorities want to keep MPs’ addresses secret. It is not a strong point. It is rather late to be flustered about MPs’ privacy and security. At a time when the IRA not infrequently tried to murder MPs, electoral law required that the addresses of all candidates (including incumbents) be displayed on posters throughout the constituency.
The authorities can hope only to buy some time with the appeal and the House is unlikely to make good use of it. Its various committees are making heavy weather of reform. Granted, they have decided that MPs should be required to produce receipts for claims above £25 rather than £250 as before. So the Commons is tiptoeing towards safety while a tidal wave races towards it.
It needs urgently to announce a replacement for the second homes scheme. The idea that it should be simply rolled up into an increase in pay of £23,000 for all members is a nonstarter. The media and public would be in uproar, the government would have to oppose it and it would reward those MPs who have no need for two homes.
For any solution to win public support, MPs must be seen to lose something. For example, they can no longer expect to pocket a capital gain if the mortgage is financed by the taxpayer. There must also be a stricter definition of who needs a second home. Many MPs who need occasionally to stay either in London or their constituency could receive a per diem allowance backed up by receipts.
In truth, the disaster cannot now be averted. Even if reforms were implemented tomorrow the freedom of information campaigners have won access to yesterday’s records and before long the claims of every MP will be laid bare.
Still, it would be better if the House could by then show that it had turned over a new leaf. In fact, as the maelstrom develops the Commons will still be floundering over what changes to make. Even as the careers of some are ignominiously ended, others will fight on to retain financial privileges that were devised in a bygone age.
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I am outraged personally.
Every aspect of our financial lives is taxed yet we can see MP's do not live in the same financial world we do. Currently I am off work ill I draw around £225 / month SSP My partner earns around £600 / month includeing tax credits. We have a 10 year old daughter, car, mortgage, rabbit, sky tv, internet, landline. This month the phone has to go as we can not afford to keep it on and seeing as the tv and internet are tied into that as a package so do they. Last time I asked for state benefit help they offerd to knock £00.11 / year off my council tax bill FULL STOP and I was out of work at the time < my partner earned £06.00 above the allowed limit >. I have not botherd to apply again since as its a waste of time asking for state help.
It seems to me MP's are more self serveing than public servants. Were people rioting on the streets I would be at my window wishing I had the strength to join them I really really would.
Bill, Manchester,
Maybe the necessary service could be provided, rather than an allowance: secratarial support could be provided by the Civil Service, there could be some "Grace and Favour" apartments for MP needing to stay in London.
Mark, Christchurch, NZ
More and more voters will be questioning the value of MPs, whose ability to influence government decisions seems to be vanishing before our eyes.It's Gordon Brown, like Tony Blair before him, who makes all the big decisions. MPs are just so many hundred rubber stamps. I don't know of many rubber stamps that get £60,000 salaries - let alone massive additional expenses. At least the House of Lords can be relied upon to debate issues sensibly, applying surprising amounts of common sense and specialist knowledge.
Tom Welsh, Basingstoke,
We don t properly know how we are governed. We know it isn t by the electorate and we easily see today that it isn t by Parliament. The mystery is reflected in the way MPs have been remunerated, which keeps them subordinate. Undoubtedly the government of this country needs reforming, but it is the recent movement away from rationalisation and towards even more obscurity which leaves little room for confidence that the proper reforms will be made. At the least we should stop using this meaningless and completely misplaced word democracy in any connection with the central government of this country.
Henry Percy, London, UK
"held artificially low"?! Massively inflated in terms of what you get in return, more like.
Nobby, London,
Just wait until election time, and local mp's ask for your vote, just say you tell me your expences and Ill think of voting for you. SIMPLE!!!
John, Essex, UK
I hate to seem cynical and although I accept that the £1.7m refurbishment of the Speakerâs official home was necessary, it's an awful lot of money. Were tenders issued for the job? If not, why not? And if so, who had a say in choosing the successful bidder? Was that bidder in any way linked to a member or official of the House of Commons? On what grounds was the final selection made?
Theo Nelson, South Hams,
May we have a specificn detailed and definitive answer as to whether MP's claims have ever been shredded.
brian kelly, Reading, England
MPs are less worried about the addresses of their principal residences being disclosed: it is the locations of their second homes (in London, in the consztituency, or, heaven forbid, in neither) which hey are keen not to have disclosed.
I understand that all Members were informed of the freedom of information regime which would come into play, and the policy the House proposed to take in disposing of records of past claims (the 3-year disposals regime) as long ago as 2003. So none really can excuse themselves if details of their additional cost allowance claims are now made public (as their office cost allowance claims routinely are).
T Gudge, Weybridge,
Mark, London:
I think we would be better off not paying them at all. The rise and rise of the well-remunerated local councillor and Member of Parliament has created a class of ruling elite - people even talk about political dynasties now. We don't need political dynasties - they are undemocratic. Take away the punch bowl and let people return to representing their constituents for the right reasons.
MarkS, Leeds,
Successive governments from Edward Heath onwards have through the inland revenue curtailed what expenses were allowable for employees to a point where today only direct out of pocket expense are allowable. Certainly no monetary gain is permitted as happens with MP's second homes and the level of justifiable expenses is not generous and only reasonable & documented costs are allowed to be claimed for. Any accommodation allowances for private sector workers DO NOT allow for any sort of recompense on ones primary residence when working for extended periods away from home. Many MP's have abused a lax system of expense renumeration to the point of illegality and one wonders just why the inland revenue turns a blind eye to flagrant fraud for monetary gain. Its certainly time for a clamp down but I see no justification in an automatic hike in salary to compensate. Just what part of the word 'expenses' don't MP's understand, as by any definition it's for out of pocket expenses and not salary.
Mike, Alicante, Spain
How on earth can MPs, who have claimed these enormous sums, look their voters in the eye?
How can we trust them with matters of state when
we can't trust them with our hard earned money of which the government takes more money in taxation each year!
I should know as instead of 18% I now have to pay 20% of income tax into the Big Black Hole!
It is truly a disgrace!
I could weep!
I do remember the silly giggle of Diane Abbot ,on the This Week show, when told how much Taxi money
she charged to expenses!!
Enid Shaw, Midhurst, UK
Sadly I fear Michael Portillo will be correct :( all too often in todayâs society important issues such as this are highlighted and then forgotten about. Jesting, no doubt we will have a security scare or something to deflect peopleâs attention.
MPs and so called elected representatives are so far removed from the people for whom they are suppose to serve and they have placed themselves on a somewhat invisible pedestal. This has been pointed out so many times by various people and organisation, but again MPs do not pay attention.
Also, I agree with the points raised by "Richard, London, England"
Phil, Sussex, Sussex
I can understand covering a rent, but covering a mortgage! If I lose my job and cannot pay my mortgage it will be six months before I can claim state aid, and then it will not cover any capital sum. I see no reason why I should finance a bullet proof capital gain for any MP especially as my tax bill is just about to rise as the bottom rate band is removed
Jane Knight, Didcot, UK
Put them in Z list, Armed forces accomodation if they require a place to sleep in london.....................................
Harry B Maskers, leicester, uk
A new era requires new solutions.
Videoconferencing is wisedpread elsewhere - why not for MPs? They can stay in their own constituiencies and join the debate electronically. Suddenly the need for a second home evaporates, and all MPs can attend most if not all discussions.
As a Doctor any gift I recieve must not be worth more than £6, lest it corrupt my ethics. This is apart from the fact I am legally accountable for my actions as well as following strict guidelines on behaviour and actions. Why are MPs not similarly bound if not more so as they help govern the entire country?
Richard, London, England
Insofar as second homes are concerned why can't all MPs be given accommodation near the Houses of Parliament - perhaps a 1 bed flat with mod cons such as WiFi, cooker, fridge, dishwasher etc (they can buy their own TVs) - and when they leave they can simply return the key. The flats could be rent free. Alternatively they could rent accommodation like anyone else who lives away but works in London during the week. Employment of support staff should have the same restrictions as other employment has - i.e., formal interview procedure. I can't see why MPs should not obey the same rules for expenses as any public servant does. As for those making making a capital gain from taxpayers' money - well, either it should be heavily taxed or just returned to the Public Purse.
Dr Ian Burgess, Bristol,
As this money is paid by the taxpayer, then there should be a legal charge registered on the property so that when the property is sold or the person ceases to be a Member of Parliament, then the money is repaid. There are many people in this country who have to commute long distances for the sake of work. Those that cant afford second homes pay in travelling expenses, those that do rightly fund the cost from their own pockets. Its about time MPs realised that they are servants of the taxpayer and not the other way around.
carol, Leicester, UK
It strikes me that MPs do actually get paid too little, and this must be in some part due to the fact that there are 646 of them. It's an expensive assembly. The USA, which is five times the size, has only 535 members of Congress, and no Lords, which also cost money. Do we really need so many representatives? Wouldn't we be better off, as the LibDems have suggested, having many fewer MPs who are better paid and really full-time parlimentarians? Once we paid them a reasonable wage they could be held much more accountable.
Mark, London,
The disconnect between politicians and the electorate (that's good one by the way, Mr Portillo, that they are our servants - haha) is now so great that it's no longer about remuneration and expenses, it's a question of whether we need so many of these 'representatives'. With devolution, the passing of more and more powers to Europe, and the quite obvious paramountcy of party loyalty over conscience and commitment to constituents, what is the function of these people? And the need for 630-odd MPs will become even more problematic if any form of PR is introduced at a national level.
Jonathan Spencer, London, UK
This is nothing- wait until we get to look into the sty where the local government have been feeding.
Neil, Liverpool, UK
Was it not recently announced that, under The Speaker's authority, MPs expense claims up until 2005 were to be shredded forthwith? The baring of bosoms would appear to be being as limited as possible.
John C , Berkhamsted, UK
Michael Portillo is right to point out that the Speaker's state apartments are quite different from the Speaker's private home, and that the moment the Speaker leaves office they lose the benefit. This does however rather beat into a cocked hat the complaints about the money spent on the Lord Chancellor's rooms at the other end of Parliament during the time of Lord Irvine. Not even the present Lord Chancellor enjoys the use of them now.
David Boothroyd, London, UK