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Brown ready to axe backbencher who claimed for phantom mortgage
Paul Waugh18 May 2009
Another MP was facing suspension from the Labour party today after it emerged that he colluded with Commons officials to make inflated expenses claims.
Gordon Brown ordered an urgent investigation into allegations that Parliamentary staff agreed £15,000 of “phantom” mortgage payments to backbencher Ben Chapman.
In a clear signal that No 10 is as worried about the role of the Commons Fees Office as it is by the actions of MPs, Chief Whip Nick Brown was today seeking clarification from both Mr Chapman and officials who approved the payments.
Business Secretary Lord Mandelson said that “people are going to be really furious” at the allegations.
Lord Mandelson told GMTV today: “I understand only too well why the public are just so angry about these disclosures. Anyone would be seeing what's coming out of the woodwork. It's completely fair for the public to feel angry.”
The Daily Telegraph reported that Mr Chapman continued claiming for a high rate of mortgage interest despite paying off a £295,000 chunk of his mortgage.
His claims remained unchanged even though his payments dropped from £1,900 a month to just £447. The practice stopped in 2004.
The MP told officials that his decision to pay off three-quarters of his mortgage — funded by a windfall from the sale of other properties — presented him with a problem because “by paying off capital I am forgoing interest and investment opportunities elsewhere”.
He and a Fees Office official “thus agreed that the mortgage should remain for ACA (Additional Cost Allowance) purposes at the original amount”.
Emails between officials suggested that there was a widespread practice of allowing MPs to receiving “phantom” payments to maximise their claims after they paid off their mortgage.
One said: “I have heard of similar arrangements being agreed to in the past. Personally I do not believe that such an arrangement should ever have been suggested.”
Speaking outside his Lambeth home this morning, Wirral MP Mr Chapman said: “Whatever I've done, I've been entirely open and above board with the authorities and Parliament and I'm distressed that this has occurred. I'm now going in to discuss it with them and see what the situation is.”
Two Labour MPs, David Chaytor and Elliot Morley, have already been suspended from the Parliamentary Labour Party pending investigations into how they came to continue claiming for thousands of pounds in mortgage interest after paying off loans.
Labour MP Jim Sheridan today called for an inquiry into how senior management at the Commons Fees Office could have allowed the practices.
Today, the Daily Telegraph published
yet more details showing MPs claiming for everything from champagne flutes to expensive furniture from a store founded by David Cameron's mother-in-law.
Tory Julian Lewis claimed £119 for a trouser press, claiming that he didn't want to “stay up all night ironing”.
Fellow Conservative Ed Vaizey, a close ally of Mr Cameron, said he had repaid £300 for an antique armchair.
A YouGov/Telegraph poll today showed support for the two main parties had fallen.
The Tories are down six points to 39 per cent and Labour down four to 23 per cent.
The Lib Dems went up one point to 19 per cent, and the total for other parties such as Ukip, BNP and the Greens went up by nine points.
Reader views (6)
It's the easy Theft by Cowards hiding behind the highest privilege of the land. We are now the laughing stock of the world.
- A.Taxpayer, London, 18/05/2009 16:31
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it's not the individual m.p's that need to be axed one at a time, it's the whole bunch from top to bottom who need to be axed.
a general election with a complete new potential intake pledged by contract to adhere to rigid, fair and unequivocal terms,conditions and wage structures with draconian penalties for those caught abusing the spirit as well as the word of the legislation.
- Mike O'Brien, london.uk, 18/05/2009 15:57
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Brown presides over a Cabinet where the only "clean" Minister appears to be Hillary BENN.He has accepted the explanations of others like Darling Smith Hoon Blears Beckett Balls Cooper Mac Nulty whom the public regards at best as "dubious"and at worst as crooks.Brown lacks the courage to take on these crimonals..perhaps they know too much.
- P Doff, filey uk, 18/05/2009 14:10
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Why has he and the other crooks not been axed already? No doubt Brown will feel he has acted now by getting rid of an unknown backbencher. His other high profile crooked MPs need to be axed as well as this unknown
- Mike, London England, 18/05/2009 13:05
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What a flawed hypocritical individual this man has proven to be. He is on record as saying he "supported Jacqui Smith" when she claimed £116,000 of tax payers money for her "second home" whilst lodging in a spare room in her sister's house which she states is her "main home". Also, when Smith's husband claimed for pornographic films on Jacqui's expenses Gordon Brown is on record as saying this was "a private matter". When can we expect him to axe Jacqui?
- R.F., Yorks, UK, 18/05/2009 11:10
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It must not be forgotten that it was only a few weeks ago that Brown hoped that he could hide this whole sordid mess behind a daily allowance for MPs. In other words handing out just as much taxpayers' money, though without the need for receipts.
Now he talks of no one serving in his Government if they have broken the rules. It would seem that milking the system for all it is worth is accetable to him. That would explain Jacqui Smith's continued presence in the Cabinet. No sleeping nights in her main residence/sister's spare bedroom for her then.
Proper reform is needed, most importantly less MPs required. I will not vote for any party that does not accept this.
- Harry H, London UK, 18/05/2009 10:43
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