MPs face expenses clampdown on all claims over £25

The move is in response to public outrage at how they were routinely claiming taxpayers' money for items such as fish tanks and iPods.

This led to calls for greater transparency on MPs' spending.

A committee chaired by Speaker Michael Martin has ordered that from next month MPs must account for everything they claim for worth more than £25.

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The amount of petty cash they can draw for office expenses will be reduced from £250 to £50 a month.

But critics pointed out that there are no new rules on disclosure of travel expenses.

MPs can claim for 350 miles per month without submitting receipts.

And extra Commons staff will be taken on the cope with the administration.

Liberal Democrat MP Norman Baker, who has campaigned for greater transparency on MPs' expenses, said: "I think this strikes the right balance between the need for public accountability and avoiding unnecessary bureaucracy.

"But there is a lot further to go. It doesn't cover travel expenses and MPs can still claim for goldfish tanks - the difference is we will know about it."

The committee said it had considered introducing a zero threshold for receipted expenses but decided that would be impractical.

As some MPs already submitted receipts routinely even for items under the present £250 limit, it believes the new regime is "administratively feasible".

The Members Estimate Committee also said it would publish proposals for better checks on expenses by the end of March and a full review in July.

Yesterday's report said: "The committee is determined to establish audit controls which command public confidence.

"Members have told us that they expect there to be a more rigorous system for checking the money has been spent on the purpose intended.

"Some have suggested that there should be a system of random spot checks on a percentage of members' claims.

"Meetings will be held with the National Audit Office, private firms of accountants, HM Revenue & Customs and the Audit Commission to establish what is the most practical and effective arrangement.

"In the issues paper we have undertaken to publish by the end of March, we will set out some possibilities to achieve a more rigorous audit regime."

The March report will cover all the issues being considered under the "root and branch review" of allowances set up after Tory MP Derek Conway was found to have been overpaying his son for office work.

Gordon Brown's spokesman said: "The Prime Minister welcomes any steps towards greater transparency in MPs' expenses."

Asked why Mr Brown did not publish his own expenses in full, the spokesman said: "That's not his decision. It's a matter for the House authorities."

"They are responsible for decisions in relation to publishing MPs' expenses and they have made a welcome step forward this morning."