Brown withdraws bid to keep MPs' expenses secret

The Prime Minister had ordered Labour MPs to back moves to partially exempt themselves from freedom of information laws so they did not have to publish receipts for their expenditure on second homes, travel and offices using taxpayers' money.

Commons leader Harriet Harman was instead proposing that their spending of public money should be listed in 26 categories including hotel costs, mortgage interest payments, council tax, fixtures, fittings and furnishings.

This amended system would have allowed MPs to conceal the use of public funds to pay for plasma TVs, gardeners and window cleaners.

But the Conservatives today refused to support the parliamentary order to change the FOI laws and it also faced being killed off in the Lords.

Faced with this, Mr Brown, after consultation with Ms Harman and chief whip Nick Brown, decided to pull the order on which they had imposed a three-line whip forcing Labour MPs to vote for it. The saga risked further damaging Parliament's reputation as critics will accuse Cabinet ministers and MPs of seeking to maintain a cloak of secrecy over their expenses at a time of economic crisis for the country.

Rebel Labour MP Kate Hoey, who was opposing Ms Harman's proposal, said: "The Government was silly to even think of changing the FOI laws."

The first sign of the government retreat came at Prime Minister's Questions when Mr Brown was accused by Tory backbencher Douglas Carswell of proposing "one law for the people and another for the politicians".

Mr Brown said the Government was supporting greater transparency over MPs' allowances, by expanding the category of expenses and better auditing. But he also admitted there was no longer "agreement" over the FOI changes.

He said more consultation would take place but Liberal Democrat leader Nick Clegg said: "This is a humiliating climbdown after he was forced to accept that people will not tolerate MPs continuing to act like members of a secret society."

MPs will tomorrow still get a free vote on publishing expenses in 26 categories. But the details, down to individual receipts, will still be obtainable under FOI laws after Commons Speaker Michael Martin lost a High Court ruling on this issue.