PM promises to clean up Parliament

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The PM said new legislation will be published before MPs rise for their summer break to create an independent regulator of Parliament and a code of conduct for MPs' behaviour.

Mr Brown said current sanctions for MPs who overclaim expenses are "not fit for purpose" and promised new powers to force those found to be guilty of gross financial misconduct to stand down or face re-election.

In his statement to the Commons, Mr Brown revealed that receipts for all MPs' expenses will be published on the internet within the next few days, and said future receipts will be made public as a matter of routine.

Insisting that he believes the vast majority of MPs "are in politics not for what they can get but for what they can give", Mr Brown said: "In the midst of all the rancour and recrimination, let us seize the moment to lift our politics to a higher standard."

He also announced plans to publish proposals by the summer for the final stage of reform of the House of Lords, including the removal of all hereditary peers and the creation of an 80%-100% elected second chamber.

But Conservative leader David Cameron responded to Mr Brown's statement by saying the best way to ensure democratic renewal is to call an immediate general election.

Mr Brown called for a wide public debate on electoral reform for Westminster elections; Lords reform; the devolution of powers to local communities; increasing public engagement in politics; and a written constitution.

Mr Brown is personally in favour of a written constitution but said fundamental change of this type could only take place after the widest possible consultation with the public.

On electoral reform, he said he continues to believe in the importance of the link between an MP and his or her constituency and would be prepared to ditch first-past-the-post for an alternative voting system only if there is "broad consensus in the country" - thought to mean a referendum.