MPs' expenses limit cut proposed

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While moving to scrap the controversial "John Lewis list", Leader of the House Harriet Harman said MPs should still be allowed to spend £2,400 a year on furniture and household goods.

The Government's proposals come as MPs get a second chance to curb their expenses after outrage over their rejection of reforms earlier this month.

Tory leader David Cameron is urging MPs to give up their right to claim household goods altogether under the £24,000-a-year Additional Costs Allowance (ACA).

In a statement, Ms Harman said the Government wanted to change the allowance "so that the reasonable reimbursement of the costs of furniture and other household goods be capped at 10% of the ACA in any one year".

The row over MPs' allowances reopened after the Tories announced they would use an Opposition Day debate to bring it back before the Commons.

Mr Cameron has tabled a motion calling for the abolition of the "John Lewis list" - the now-notorious table of furniture and home improvement claims available to MPs, based on prices at the department store.

In an amendment, the Prime Minister backed scrapping the list but removed a Tory proposal that no more claims for household goods may be made from next April.

That would have meant that MPs can only use the ACA to claim for utility bills, council tax and mortgage interest payments, or rent.

Gordon Brown is also calling for "an external financial audit" by the National Audit Office (NAO).