Harman pledges action on expenses

Ms Harman acknowledged that the reputation of Parliament had suffered "big damage" as Chancellor Alistair Darling became the latest member of the Cabinet to be dragged into the controversy over the taxpayer-funded allowances paid to MPs.

With a review by the Committee on Standards in Public Life already under way, she said that swift action was needed to restore public confidence in the political system.

"There needs to be much clearer rules and tough enforcement so that the public can have confidence that MPs are getting on with their job and that public money is not being abused," she told BBC1's Breakfast.

"We recognise that there is a lack of public confidence, people are concerned about the situation - and understandably so - and we are going to change the rules.

"Gordon Brown has asked for an independent review and we will be taking action soon."

Earlier it emerged that despite living rent-free in Downing Street, Mr Darling claims thousands in second-home payments on his Edinburgh constituency home while also renting out his "main" home - a flat he owns in London.

Details of his claims, which came after the disclosure that Cabinet colleague Geoff Hoon had employed a similar arrangement when he was Defence Secretary, sparked renewed calls for an urgent rule change.

There was no suggestion either had broken Commons rules, but Tory leader David Cameron indicated he would ban the practice while Liberal Democrat leader Nick Clegg branded the situation "barmy".

Mr Cameron said he would not claim the allowance if he moved into Number 10 after the next election and would expect other Conservative ministers with grace and favour properties to do the same.