Rules to stop MPs abusing perks are too lax, says watchdog

The row over MPs' perks escalated today after the public spending watchdog issued a damning verdict on rules to stop abuses.

The London Evening Standard have revealed that the National Audit Office has highlighted a series of concerns over allowances for MPs and stated that regulations governing them need to be "rigorously enforced".

It appeared to accuse Commons finance chiefs of being too lax in ensuring MPs stick to the rules.

The parliamentary authorities, headed by Commons Speaker Michael Martin, were also urged to give finance officials full backing to stop MPs fiddling the system of taxpayer-funded allowances.

At a private meeting with a panel of senior MPs reviewing the allowances, Tim Burr, head of the NAO, pointed out weaknesses in the system.

Firstly, he voiced concern that there was no complete audit trail for expenditure on MPs' allowances despite this issue being raised a decade ago. It was primarily left to MPs to ensure the "regularity and propriety of expenditure" for which they claimed.

Mr Burr also said a new system to make MPs produce receipts for claims over £25 would allow the NAO to carry out better checks but only if it was "rigorously enforced".

The NAO chief and its director of financial audit, Helen Booth, gave evidence to the Commons members estimate committee, which started an inquiry in the wake of the Derek Conway scandal.

Minutes reveal that points made include that the Commons department of resources should enforce the Green Book  -  rules on perks, salaries and pensions  -  "more rigorously".

But the finance chiefs needed the authority of the House to ensure MPs kept to the rules, the document adds, and stressed that in cases of conflict they should not be undermined by other Commons bodies.

The minutes also highlight " inconsistencies" in MPs' record keeping and in some cases supporting evidence of a claim was missing which would itself be "damaging".

Several cases of MPs claiming the additional cost allowance, of up to £23,000 a year, have sparked controversy without there being evidence that they have broken the rules.

They include Tory MP couple Sir Nicholas and Ann Winterton, who claimed £21,600 in taxpayers' money a year to rent a London flat they had already bought.

They defended their actions to put in a bill said to total £165,000 since they paid off the mortgage and transferred the flat to a trust believed to be for their children.

They insist the arrangements had been cleared by the Commons authorities.

Labour MP couple Ann and Alan Keen were also criticised for using £175,000 of taxpayers' money to buy a flat near Parliament even though they have a constituency home nine miles away.