Labour plan will ban MPs from taking on lucrative second jobs

The Prime Minister is looking at measures to rid the Commons of its 'snouts in the trough' image. 

The move comes as the number of former ministers using their connections to secure private sector posts has surged to the highest level since 1997.

Lucrative: Former Labour cabinet minister Patricia Hewitt is among those who have taken up extra work

It could embarrass the Conservatives as two thirds of its MPs hold paid directorships or positions outside Parliament.

More than a third of LibDems but only a fifth of Labour MPs have similar roles, according to figures compiled by deputy Commons leader Helen Goodman, who is drawing up the proposals. 

Her confidential paper, being prepared for Mr Brown, includes three options: a total ban, a cap on outside earnings of around £10,000, or limiting jobs to newspaper columns and TV work.

Any attempt to curtail MPs topping up their £61,181 backbench salary will face opposition from across the political spectrum.

Mr Brown is desperate, however, to be at the forefront of efforts to clean up Parliament's tarnished image after recent controversies over MPs' allowances.

He was caught out earlier this month when he failed to corral Labour MPs into dumping the socalled 'John Lewis list', which allows MPs to use taxpayers' money to buy household goods for their second homes.

David Cameron stole a march on him by marshalling his Tory troops behind the crackdown on MPs' perks. 

According to Government sources yesterday, the plan was originally conceived to reinvigorate Labour's fightback in the wake of the Crewe and Nantwich by-election drubbing and the row over the 10p tax band. 

Number 10 sees the move to limit MPs' earnings as potentially popular with voters. It does, however, risk a return to class politics, and the Tories point out that many Labour MPs receive union funding.

No decision has been reached, and one suggestion is that restrictions may be announced at the party conference in September. Another is that a Private Member's Bill will win Government backing.

Former minister and Brown ally Chris Leslie wrote yesterday about his own proposal, which is also being studied by the Prime Minister.

In an article for the the Fabian Society's magazine he said: 'If MPs have excessive outside earnings from consultancies and directorships, then people perceive that they are diverted from the public interest.'

Significantly, Government whip Sadiq Khan welcomed the move. 

He accused the Conservatives of 'hypocrisy' by giving the impression that MPs were paid well, without saying that many Tories had up to four outside jobs. 

But Labour former ministers are beginning to follow the Tories into the City and at least 11 have taken up roles with companies linked to their former Whitehall departments. 

Thirty-two former ministers sought clearance to accept a total of 81 jobs in 2006-08, including Tony Blair and ex-Home Secretary David Blunkett.