Watchdog probes PM's rent row

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Parliamentary Standards Commissioner John Lyon wrote to Mr Brown following a complaint from Conservative MP Greg Hands that he failed to declare more than £1,600 rental money from his local Labour Party.

Mr Hands says the money was paid for use of part of Mr Brown's office in his Kirkcaldy and Cowdenbeath constituency, which the PM himself rented using parliamentary allowances.

The local party paid £3,321 in rent to Mr Brown and the constituency's Labour MSP Marilyn Livingstone.

Half the money was paid to Mr Brown, but he did not declare it in the House of Commons Register of Members' Interests, said the Tory MP.

Subletting premises paid for from parliamentary expenses has been banned since a scandal which forced the resignation of former Scottish First Minister Henry McLeish six years ago.

Mr Hands has confirmed that Mr Lyon responded to his complaint in a letter, which read: "Your complaint is that Mr Brown has sublet accommodation which he leases and pays for out of his parliamentary allowances contrary to provisions and has failed to register any income in the Register.

"I am writing to Mr Brown to invite his comments. Once I have received his comments... I will consider how to proceed."

The Tory MP said he did not allege any financial wrongdoing on Mr Brown's part but believed that parliamentary rules had been breached.

The Mail on Sunday reported that Mr Brown has now changed the financial arrangements for the office to bring them in line with Commons rules, switching its leasehold to Ms Livingstone, who now sublets rooms to the PM and the local Labour Party.