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A LONDON MP was caught in a new expenses row today over using taxpayers' cash to fund her constituency party.
An Evening Standard investigation has found that Barking MP Margaret Hodge has let her local Labour party use half of the two-storey building she rents in the constituency.
Ms Hodge used public funds totalling more than £60,000 to rent and equip 102 North Street in the town centre. The first floor is Ms Hodge's constituency office, where she and her staff deal with casework and constituency issues, the purpose for which the allowance was designed. But the ground floor has become the headquarters of Barking Constituency Labour Party, which never had a base of its own until Ms Hodge provided one.
The MP's constituency secretary, Mike Haywood, said Ms Hodge's use of her parliamentary office costs allowance in this way was approved by the House of Commons Fees Office.
Labour's election campaigning in Barking is co-ordinated from her office, executive and branch committees meet there, and its election leaflets are printed and sorted there.
The Standard has obtained numerous letters, agendas, circulars, meeting minutes and election leaflets sent out by the Barking Labour Party, all of which carry the North Street address.
The phone number given for Barking Labour Party in the Yell.com directory enquiry service is the same as Ms Hodge's constituency advice line. The phone bill on this number is paid by the taxpayer.
The MP has had the property for about three and a half years. The landlord, Barking council, confirmed that she is the sole tenant and the rent is paid out of her parliamentary office costs allowance.
A council spokesman said: "The amount is paid to us directly by the Commons Fees Office."
Ms Hodge's arrangement appears to breach Commons rules, which state that no payments under the allowances may "provide a benefit to a party political organisation" and MPs "must not sublet accommodation which [they] lease and pay for out of the allowances".
Mr Haywood admitted the building was in "regular use" by Barking Labour Party but insisted the party did pay a "nominal sum" of up to £200 a year for the use of the property.
He said: "We were given to understand that the local party can meet here about 20 times a year. The advice we were given [by the Fees Office] was that we had to set a nominal charge and we invoice them for around £10 a time."
The Fees Office regulations, however, specify that only "occasional use" by organisations other than the MP is allowed. The rules also make clear that the charge paid by those organisations must be set at a "proportionate", rather than nominal, level.
The regulations say any money received from outside organisations should be paid back to the Commons and thus to the public purse. However, Ms Hodge's total office and staffing expense claim last year - £121,761 - was only £83 below the maximum limit, suggesting little or no money was received from outside.
Deducting staffing costs and the "communications allowance", Ms Hodge claimed a total of £24,767 for her office last year - the sixth highest claim by any London MP and in the top 10 per cent of all MPs.
For 2006 and 2007 she claimed about £43,000. She is also likely to have claimed between £20,000 and £25,000 this year, although exact figures are not yet available, making her total potential claim for the office in excess of £90,000.
There is no suggestion that Ms Hodge has personally profited from her claims. As a London MP she does not take part in the most controversial element of the expenses system, the second home allowance.
Mr Haywood said: "The fact that she's a high-spending MP on office costs and staffing is a good thing because it's a reflection of the work she's doing. We get a hundred new cases a week."
The Standard has learned Mr Haywood's partner, Georgina Jessiman, is a senior official in the Fees Office. But he said she had taken "no part" in his discussions with the Fees Office about what Ms Hodge could claim.
Reader views (24)
Here here Chris and NP - get her out she's a liability to Labour and a complete waste of my (a hardworking taxpayers) money.
- Ray, Dagenham
Had these details not been leaked we would not know all this information. The bare faced arrogance of these people is beyond comprehension, we have locked-up people with higher morality than these money suckers
- Gary, brentwood
Add her to the sacking list. Yeah. Right. We plebs have just got to put up with it.
- Np, Cornwall, UK
How many times does this creature have to be the subject of another corruption query before she goes?
- Chris Close, Blanchland UK
The gravy train approaching the commons platform 1, is for the House of Frauds, expense account passengers, MEPs,MPs, local councillors,Chief Police officers and civil service spongers should use the front of the train, please do not allow anything of value on the train.
- Wills, Soton
"The fact that she's a high-spending MP on office costs and staffing is a good thing because it's a reflection of the work she's doing. We get a hundred new cases a week." rings a bell! I seem to remember Geriant Davies using this arguement when he spent £38,000 on stamps to send everyone in Croydon Central a nice calendar of himself as part of his record £176,026 expenses claim. Oona King I believe spend a huge sum on postage too. The perversion of parlimentary expenses towards party political activity is a subject that hasn't been dug into. All those food bills that are "for consituents" ...yes, which ones?
- Anthony Miller, Croydon
and none of these crooks will lose their jobs, pension or do jail time. When do quangos, euro MP's and Lords get kicked into touch and lose their pensions and get defrocked and or jailed as well
- Neil, London
She was barking when in charge of Islington,now she is truly in the right place.Rules are for leetle people eh?
- Frank, Yorkshire
Of course Ms Hodge profited by this, it is not the MP that does the leg work knocking on doors and putting leaflets through the letter box its party members.
They do all the work then the MP spends4/5 claiming the money and the kudos
Time for a general election, allow the British public to speak
- Sam, surrey
How GRAND! Life is one big party for these shameless, spendthrift Labour MPs and cronies. Indeed,'everything' was systematically paid for by the unwitting taxpayers and Hodge was simply 'promoting' the Party at the party, she won't be punished.
- K Lee, Cheshunt, UK
It is time for all of them to go. Let us have a general election next month - No ifs or buts - get on with it.
- Kevin Guilfoyle, Cersay, France
Was she not warning us about the BNP, who will protect us from her and free loading mates.
- Steve M, London
It is all taking too long and the fees office staff should be sacked especially the guy on 125 thous per year
- Jean, London England
The taxpayer should only pay for the sq ft that Ms Hodge has actually used, she or the Labour party should pay 50% of the rent for the designated period. This cut of rent would no longer make her such a high spending MP and therefor, with Mr. Hayward's logic, this would reflect on 'her work' that he judges by the amount of public spending rather than the more traditionally measured effectiveness.
So we should take Mr. Haywards word that his partner had nothing to do with Fee's Office info (also- is it in writing)
Also, if these people can't read and understand the guidelines, and act in an exemplary way as the guidelines request, with no room for doubt, then are they capable of working for constituents?
The reporter says that Ms Hodge did not benefit personally. However, it benefits her personally if Labour keep their seat, especially as it has been funded by the general taxpayer, so that she can remain in the buffet car of the gravy train.
And I am a Labour voter.
- Mark, London
WHERE ARE THE POLICE?
WHERE ARE THE HANDCUFFS?
- Reuben Camara, Morecambe UK
This is theft and they should be prosecuted. If it was you or me, ordinary citizens, we would be in jail right now for false accounting and fraud and theft!
- Peter, Croydon, Croydon
The collusion that has gone on between MPs and The Fees Office is now plain for all to see. This Office should have the National Audit team at work on it forthwith.
- Michael Murphy, colchester
Stand down the previous chap say, you have got to be joking, she has no honour, the lot of them can go to hell in a handcart.
She tried and failed to fill the shoes of the best MP Barking ever had Jo Richardson. So move on Hodge and let the people choose an honourable person who cares represent them.
- Derrick, dagenham
This is not what I pay my taxes for. If I wanted to contribute to a political party I would join one. And as for this Haywood chap saying its a reflection of the work she is doing, and he gets a hundred new cases a week. Well perhaps instead of playing politics he should get on and deal with them.
I wrote to the MP some weeks ago and never got a reply and I have tried phoning and its either engaged or no answer so I just gave up in the end.
Perhaps someone will now investigate whats going on there and thank you Evening Standard.
- Mary, Barking
Not surprised really seeing as the Labour party are in debt.
This House of Commons Fees Office has the same open door policy as Labours stance on immigration. No idea who is coming into or going out of the place; oh and bugger the cost, the tax payer will pick it up.
- Frank, Home Counties, England.
No doubt the most she can expect is to stand down, Until these crooked MPs are charged with fraud or theft they have nothing to lose.
- Mike, London England
"The MP's constituency secretary, Mike Haywood, said Ms Hodge's use of her parliamentary office costs allowance in this way was approved by the House of Commons Fees Office."
"The Standard has learned Mr Haywood's partner, Georgina Jessiman, is a senior official in the Fees Office. But he said she had taken "no part" in his discussions with the Fees Office about what Ms Hodge could claim."
You couldn't make this stuff up if you tried...
- Richard, London, UK
She's a wrong 'un. She obviously thought she would never get her expenses published and that she could carry on cheating us ad infinitum.
Will she resign? Of course not, she has no honour.
- St, London
Another 'free loader' found out.
Did you see the news last night. Dry Rot Margaret Moran
spends 22,500 on a house for dry rot but the front of her
constituency office had dry rot all over the name boards.
Sack the lot of them, they don't deserve their pentions or any renumberation payments.
We cannot have people governing us that we have no confidence able to continue governing for another year.
- P. C., rainham. essex.
