Gordon Brown’s authority was undermined further last night after he was forced to drop his attempt to reform MPs’ expenses.

The Prime Minister bowed to opposition from David Cameron and Nick Clegg to junk his proposals for a £150-a-day attendance allowance for each day MPs turn up for work at Westminster.

The vote on measures to clean up MPs’ expenses will go ahead on Thursday but there will be no attempt to replace the £24,000 second-home allowance.

Yesterday Mr Brown attempted to bounce the issue over to Sir Christopher Kelly, the chairman of the Committee on Standards in Public Life, writing to ask him to bring forward his inquiry and find a consensus on the issue by the summer. Sir Christopher rebuffed the request, making clear that he would not be rushed into announcing his conclusions.

In a curt reply to Mr Brown, he said: “Expenditure on accommodation is but one part, though a fairly major one, of a more complex system. We would be concerned about addressing it in isolation and remain eager to hear all proposals for reform. As you know the issues here are not simple.”

Mr Cameron and Mr Clegg set out their stalls against giving MPs a flat rate, which they argued would reduce transparency rather than improve it.

In a letter to Sir Christopher, Mr Brown said: “You will . . . be aware that a consensus has not been reached on the future of the personal additional accommodation expenditure for MPs. But we are agreed on the need for swift reform.

“Therefore I would ask the Committee on Standards in Public Life to come forward with its proposals on this issue as soon as possible and preferably before the summer recess, taking into account MPs’ attendance at Westminster, the need for transparency and accountability and the desire to reduce the existing limits on the allowances which MPs may claim, producing overall cost savings.”

Mr Cameron said last night: “This whole episode has been a U-turn followed by a climbdown, ending in a farce. We put forward workable alternatives to the current arrangement that would have ended the abuse and helped clean up the system. By avoiding a vote on the key subject of second homes, the PM has ducked out of dealing with the difficult issue.”

Mr Clegg said: “Gordon Brown didn’t get his way with his proposal to pay MPs for turning up so he is denying us any chance to debate the issue of second homes.”

Thursday’s debate will still include votes on a number of other issues. The most significant proposal will mean MPs having to declare all income from jobs outside Westminster.

In a move that will place MPs’ activities under further scrutiny, they will be required to register how many hours they have worked, for whom and doing what. Although the Tories have agreed to the principle of the declaration of outside earnings, they have questioned whether the “time sheet” proposal would work.

Another motion would bring an end to claims for the second-home allowance from MPs with constituencies in Greater London from 2010. It would also allow for staff to be employed centrally by the House of Commons, rather than by individual members. This has caused concerns among some MPs that it could create a single unionised workforce that they fear could go on strike.

Times Recommends

• Foxy Knoxy snared by her lust and her lies
• Britain is the land of the shrinking family
• Zac Goldsmith: Not such a green god