Gordon Brown is set to block the bumper £4,584 pay rise for inner London MPs, the Standard has learned.

A source close to Downing Street revealed he is uncomfortable with a rise that is equivalent to an inflation-busting seven per cent.

Twenty-six London MPs are in line for the pay boost, based on the recommendations of a review of parliamentary perks and expenses.

It said their London supplement paid on top of their £61,820 salary should rise from £2,916 to £7,500.

Little justification for the idea was given beyond that it would compensate for a high cost of living and "antisocial hours".

But critics say that MPs work fewer late nights than in the past - normally a maximum of two a week - and that all Londoners face a high cost of living.

The suspicion is that the review panel caved in to a campaign by some MPs for "compensation" for the fact that they are not allowed to claim for a free second home at the taxpayer's expense like MPs from outer London and elsewhere.

The Downing Street source said: "The Prime Minister's position is quite clear. Westminster should set an example of pay restraint."

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