David Cameron: I'll sack Tories who refuse to be open about expenses

David Cameron has said that it would be 'crazy' to award MPs a pay rise or daily allowance in return for giving up their second homes subsidy.

The Tory leader said a 'no questions asked' system would make politicians less accountable to voters.

His intervention sends a clear signal to his party ahead of a review of Parliamentary expenses, which will report this week.

Mr Cameron's comments are likely to kill off proposals for a large pay rise or a 'per diem' allowance paid to MPs simply for turning up to the Commons.

Asked about the idea of a tax-free payment to replace the controversial second homes allowance, Mr Cameron said: 'Something that would be less rigorous than what we have now is absolutely not a runner.

'The idea of a per day amount is crazy. MPs are meant to go to Parliament.'

The Members' Estimate Committee, set up in the wake of the Derek Conway scandal, will give its recommendations this week.

It is expected to suggest a handout of around £150 a day or a pay rise of £40,000 a year if MPs give up the property allowance.

However, Mr Cameron's intervention makes it more likely that the subsidy will be kept - with the rules tightened - when a free vote is held in the Commons next month.

He said he had ordered his frontbench MPs to make full declarations of how they spend their allowances by next month, and he expects all other Tory MPs to do the same as soon as possible.

Mr Cameron added that he was not pretending the Tories were 'knights in shining armour'.

He admitted: 'We are part of the problem. We must be part of the solution.'

Sources close to the leader said he was keen to avoid Tony Blair's mistake of suggesting New Labour would be 'purer than pure' - only to see the party mired in 'sleaze'.