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MPs are to be forced to disclose details of claims for housing allowances worth more than £20,000 per year, after a scathing ruling on the “laxity” of the Commons’ system.
The Information Tribunal ruled that a breakdown of the housing allowances of Tony Blair and Margaret Beckett, the former foreign secretary, must be disclosed, after a three-year battle by The Sunday Times.
Michael Martin, the House of Commons Speaker who is reviewing MPs’ expenses, is likely to face intensified pressure to reform the current system after today’s decision.
The Information Tribunal said it was a “recipe for confusion, inconsistency and the risk of misuse”. It said the rules were “redolent of a culture very different from that which exists in the commercial sphere or in most other public sector organisations today”.
Rupert Earle, a solicitor at Bates, Well and Braithewaite, which represented The Sunday Times, said: “This ruling has implications for MPs who have clearly been claiming allowances with lax checks and confusing rules. The House of Commons is going to have to be significantly more transparent about how this money was claimed.”
MPs are entitled to claim up to £22,110 in housing expenses, known as the additional costs allowance (ACA). Ministers can claim the allowance even if they live in a grace and favour home paid for out of public funds.
Over a four year period to 2006, Mr Blair claimed more than £60,000 in allowances for his constituency home, even though it had a very small mortgage. Over the same period, Margaret Beckett claimed more than £65,000, even though she had a grace and favour apartment in central London and did not have a mortgage on her constituency property.
It emerged last weekend that the Speaker received £17,166 in expenses for his home in Glasgow last year when the property does not have a mortgage.
Two further requests over the expenses of other MPs' were also considered by the tribunal and it similarly ruled that they should be disclosed. The MPs covered in the additional submissions include Gordon Brown, David Cameron, George Osborne, William Hague, Peter Mandelson, and John Prescott.
The House of Commons refused a Sunday Times freedom of information request for a breakdown of how the money was claimed when new freedom of information laws were introduced in January 2005. When the Information Commission ruled in favour of the newspaper’s request, the House of Commons appealed to the Information Tribunal.
It was admitted in the tribunal hearing earlier this month that MPs do not have to submit receipts for items less than £250 and could claimed up to £400 a month for groceries. House of Commons officials admitted using a “John Lewis list” as a guide price for what MPs could claim.
The House of Commons vigorously defended the expenses claimed by MPs, but today’s decision makes harsh criticisms of the current system. It highlights confusing rules and “very limited” checks on the public funds claimed.
It states that the traditional justification for self-certification, that MPs are elected representatives, falls apart because of the inadequacy of the rules.
The judgement adds: “Seen in relation to the public interest that public money should be, and be seen to be, properly spent, the system is deeply unsatisfactory, and the shortfall both in transparency and accountability is acute.”
The House of Commons argued that a detailed breakdown of the housing expenses would be a breach of privacy, but the tribunal ruled full disclosure was required because of legitimate public interest objectives of “transparency, accountability, value for money, and the health of our democracy”.
The tribunal said a limited amount of information did not have to be disclosed. This included bank statements, itemised phone bills, the names and addresses of contractors and details of any security measures at a property.
The requested information must now be released within the next 28 days, unless the House of Commons decides to appeal to the High Court.
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I do not understand how HMRC has not investigated these allowances and claims. Is there a law that states the MPs are not subject to tax on their income?
When the Archbishop mentioned Sharia law there was massive opposition to the suggestion. A major claim was that the Law was for ALL the people. Great! But we know learn that ALL the people does not appear to include MPs - certainly with respect to HMRC!
What sort of country is the UK becoming? Corruption akin to Mugabe's Zimbabwe?
M. Cawdery, Portadown, UK
Carl Hague hits the nail on the head. Government is responsible for introducing tax legislation and all we ask is that the same law as it applies to us should apply to MPs. If they don't like it well then they are best placed to amend it.
The truth is that tax legislation as it applies to the wider population is very aggressive apropos expenses and employers have had to adapt accordingly. If a director of an owner managed business followed the same expense policies as those of MPs he or she would probably end up in court on charges of tax evasion.
Martin, Reading, UK
We are always being lectured by Nulabour that ' If you have nothing to hide, you have nothing to fear'.
How does the Inland Revenue deal with the tax returns and expenses of these people, always assuming that they have to submit a tax return......Do I smell another mess?
Josh Martin, Oxford, Gt.Britain
Can we obtain the figures for how much our mp's cost us in total?
Josh Martin, Oxford, Gt.Britain
It's public money that is being used - in theory at least - in connection with expenses incurred in connection with their being an MP. Of course the expenses claimed should be disclosed. Unless, of course, there is something to hide.
Richard, Manchester,
This is public money that is being spent and it is correct that the information is published. However, the system itself needs a serious overhaul. No more, it is public money, lets help ourselves because we are not really breaking the rules. Let us use commercial rules, where receipts would be required by every 'honorable member' and anything without a receipt cannot be claimd and where you cannot claim for anything that you have not had to spend money on, In addition, The smug complacency that exists because they conveniently investigate themselves should also be ended. it is perhaps time that the Inland Revenue investigated every single 'honorable members' tax returns. Being an MP has become a 'get rich quick scheme' that we are all paying for.
J Williams, Manchester,
Funny how the Public Sector employees have to tighten their belts whilst MP's loosen theirs. Funny how the Public Sector have to publish financial statements whilst MP's hide theirs. Funny how few people bother to vote these days........
asmith, Epsom, UK
Good - its public money so how its spent should be in the public domain for all to see.
Rob, London,
If you claim a tax break on anything, and the inland revenue find out about it, you're sent a large bill, and sometimes even prosecuted.
Whats different about the government claiming allowances for things they do not have?
To me, it stinks, and sounds criminal.
Arthur, Newcastle,
Simple Question would you vote for an MP who is not prepared to diclose thier expenses? I will certainly be considering it at the next election?
Lee, Chesham, Bucks
Congratulations to the management of 'The Sunday Times." Newspapers in Australia would never take the trouble to address such an important issue in the manner that The SundayTimes has done. This chapter will hopefully force change in the parliamentary system of Westminister and other countries which follow the Westminister system of government. The judge did not say that it is corrupt, but that terminology fits nicely to my thinking.
Jim Wills, Brisbane, Australia
Sir,
I recall that when I was a British taxpayer, which is not now the case, that the then Inland Revenue required that in order to be considered non taxble, business expenses should be "wholly, necessarily and exclusively" incurred for business purposes.
In the light of the current controversy over M.P's expense and allowances claims, does this test not apply to Members of Parliament and if not why not?
I would dearly like to read a discussion on this point in "The Times."
Carl Hague, Santa Eulalia, Ibiza, Spain
There is no other organisation in the UK that has such generous allowance schemes.
For any other organisation in the UK and for any other person -employed or self-employed HMCE would define all of these expenses as Benefits-In-Kind and make them subject to taxation - at best.
The creativity in claiming would not be possible anywhere else either.
MPs create tax laws but then opt out of living by them....
Mike Carter, Bristol, UK
I'm looking forward to see how ministers living in grace and favour accomoodations such as Blair and Beckett could rack up such levels of additional costs allowance.
Transparency has been a long time coming and MPs should accept it with grace - in the 21st century where everyone else has to submit claim forms, it is their duty to account for their expenses.
It might even help the Speaker and his groupies to be serious about reform, finally realising that they pussyfoot around with their reform at their peril. If they were sensible they would seize this opportunity and go for radical reform having a similar system to the Scottish Parliament where full details of all expenses are published online. Maybe then the public will regain their trust of policians.
Augustus, Cambridge, UK
What good is "transparent" if you still can't touch them?
Marty, London, England
If a salesman tried to claim expenses this way, they would be thrown out ,most likely he would be out of a job, but then we are talking M.P's here, They haven't a clue how the man in the street lives.
catherine crighton, livingston, west lothian
well, pigs in the trough i think covers it. do they not care that some people who live in this country will never earn in a year what they claim in expenses? no wonder there is apathy amongst the voters.
Phl Barnes, Preston, england