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MPs should not profit from mortgages funded by the taxpayer, says Clegg
Nicholas Cecil27 Apr 2009
MPs should be prevented from making capital gains from any part of a mortgage funded by the taxpayer, Liberal Democrat leader Nick Clegg said today.
Mr Clegg proposed the plan to end the deadlock in the row over MPs' expenses for second homes.
He has written to Gordon Brown and David Cameron with his idea to reform the £24,000-a-year additional cost allowance, for second homes, which MPs are accused of exploiting as a top-up to their £64,700 salary.
The Prime Minister faces a humiliating defeat in a vote, possibly on Thursday, over his proposal for a daily allowance of about £150 instead of the second home allowance. Some MPs fear they will lose out because they would not get the daily attendance fee during the summer recess -nearly 12 weeks this year.
Ministers have been accused of seeking to "bribe" MPs into backing Mr Brown's plans with a payment, reportedly of between £2,000 and £5,000, to cover the summer break from Parliament, but No10 has now also signalled that the Prime Minister is prepared to amend his proposals.
Mr Clegg's new plan, which he offered in a bid "to reach consensus as soon as possible", would ensure that additional accommodation expenditure is reduced and only claimable against basic utility bills, council tax and either rent or mortgage interest.
MPs would be banned from making any capital gains from any part of a mortgage paid for by the taxpayer, and the arrangements would be restricted to MPs with constituencies outside greater London. Mr Clegg wrote: "If it is an interest-only mortgage, the taxpayer would get 100 per cent of the capital gain; if it is a capital and interest mortgage, the taxpayer would get the capital gain in proportion to the share of total mortgage costs paid."
He reiterated his "strong opposition" to the idea of daily allowances which is seen to be abused by MEPs.
His proposal came as rumours swept Parliament that MPs have been abusing public funds to pay for helicopter trips and foreign homes and one is even said to have claimed for four flatscreen TVs in as many years.
Reader views (10)
All out-of-London MPs should be provided with free B&B accommodation in State owned buildings when in London. Then, no mo housing expenses for anyone. No more capital gains at our expenses either.
- Michael, Kensington, UK, 27/04/2009 17:57
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Why do we not just pay for hotels for anybody with a commute longer than the average of their constituents? Clegg lives on my street and bought at the top of the market so I'm sure he's not worried about losing out on capital appreciation.....
- Mark, London, 27/04/2009 17:24
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Wills. Soton. Great idea, but because it makes sense it will never happen,
- Alex., brighton, 27/04/2009 16:51
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The constituency should own the house that MPs use whilst sitting, either in the area or in London for distant sitting MPs and passed onto the next elected member. Any future boundary changes and the property can be sold and monies returned to the taxpayer.
- Wills, Soton, 27/04/2009 14:44
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Brown seems to suffer from Nelsonic Blind Eye when dealing with the patent dishonesty revealed so far of his Ministers and supportive MPs.The public feels a contempt for these freeloaders which Brown is yet to realise...reminiscent of Hitler in the bunker.
- P Doff, paris france, 27/04/2009 14:37
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I'm not sure that Cameron and Clegg, or any politician who hasn't earned a living outside politics, fully understand the mechanics of how workers are reimbursed for legitimate expenses incurred as set down by the Revenue and how little can actually be claimed. The political class seem not to understand the ethics of public service, either, and must learn it. Cameron and Clegg are on the right track and will get to a sound conclusion.
Brown is, as usual, on another planet and avoiding the reality of the British publics' current anger.
- Kiwi Expat, London, UK, 27/04/2009 13:41
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If attendance at the house of commons is required (and I personally would prefer it if they stayed away) then they should stay in hotel accommodation and be reimbursed upon present receipts. No "main" homes in sisters' back rooms, no patio heaters, barbeques, antique fireplaces or pornographic films. Those who have abused the system and made fraudulent claims must, when they leave office, be made sell the "second homes" which have been paid for and furnished by tax payers, and the proceeds returned to the public purse. NO MORE PERSONAL GAIN AT OUR EXPENSE.
- R.F., Yorks, UK, 27/04/2009 13:00
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At least Clegg and Cameron seem to understand the depth of ill feeling that there is in all walks of life against these allowances and are trying to come up with some decent proposals. Unlike our dear leader who seems to me to be acting like a rabbit caught in the headlights of an oncoming tank.
- Michael, London, 27/04/2009 10:29
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Ah yes, the good old dirt within politics never really changes. In the immortal words of Prince Buster:
Don’t watch this – watch that – it’s a scorcher!
Nothing like seeking a safe bit of moral high ground to keep the troops happy!
Pat Regan: author of Dirty Politics and Founder of Save Southport Greenbelt.
http://www.ssgb.bravehost.com
- Pat Regan, southport, 27/04/2009 10:18
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My work involves overnight travel on at least 3 days each week. If I asked the finance director for a housing allowance to help buy a flat I would either be fired, demoted or made an object of intense ridicule. The solution to MPs accommodation is simple - if attendance at the House of Commons is required that results in an overnight stay then a hotel room is booked within a defined price range. The receipt from hotel enables the MP to be reimbursed. No John Lewis list, no bath plugs and no personal gain at our expense.
- Stephanie Williams, London, 27/04/2009 09:31
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