Government rejects watchdog’s rules to clean up Parliament after expenses scandal

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Gordon Brown urged the Independent Parliamentary Standards Authority to reconsider its blueprint for tackling the expenses scandal.

The Government instead sided with the committee on standards in public life, chaired by Sir Christopher Kelly.

He had criticised the watchdog for allowing MPs to continue employing their wives and over changes to his plans that they should not be able to profit from any capital gains on property made on the back of taxpayers' money.

In its evidence to the watchdog, the Government said: "Since setting out these principles, the Government has accepted in full the recommendations of the committee on standards in public life published in November 2009.

"We therefore believe that the recommendations within that report should provide the way forward for the new expenses regime.

"We would urge IPSA to look to each of these recommendations in constructing a new scheme in the knowledge that they have the support of the Government."

Under IPSA's plans, some MPs living within reasonable commuting distance from London could retain their second homes and suggested that only MPs with constituencies in zone 1 to 6 should not be allowed to do so.

In addition, the worst abusers of the expenses could escape from having their resettlement grants axed and MPs could choose which property is their second home and could switch the designation every Parliament.

They may also get a say on whether they have to repay any capital gains they make on property funded by the taxpayer during a transitional phase. More MPs could carry on receiving public funds for security at their homes.

Sir Ian Kennedy, chairman of IPSA, is left with the dilemma of whether to proceed with his plans or accept the committee's.