'Ban MPs from using taxpayers money to buy properties' says watchdog

13 April 2012

Tony Blair and senior Ministers with grace-and-favour homes should be banned from using taxpayers' money to fund their constituency properties, Parliament's sleaze watchdog said.

Sir Philip Mawer said it was wrong that Cabinet Ministers claimed up to £22,110 a year tax-free to help pay for their second homes when they enjoyed the use of grand mansions also at the expense of the state.

The call will cause alarm among Mr Blair and six senior ministers who get luxury free accommodation as part of the trappings of high office.

Together they stand to lose £115,000 a year claimed for the running costs of second homes.

Sir Philip said the allowance should be changed so that MPs pay for at least one home out of their own pockets rather than using taxpayers' cash.

He said: 'One principle, which must be observed, is that any member, whether a government minister or not, ought to be expected to pay for at least one house.

'There has been some concern in the past that, in the case of ministers, they may have a provided home, which they are not paying for, they are claiming a parliamentary allowance on a home in the constituency and they are renting out the flat in London, which they occupied before they became a minister.'

Last year seven ministers who have the run of luxury grace and favour mansions claimed more than £115,000 in housing allowances.

It provoked claims they were being subsidised twice by the taxpayer because both homes are funded by the state.

The Ministers tend to rent out their London flats they used before getting the job - meaning they are not paying for any properties themselves.

All MPs and ministers are allowed to claim the additional costs allowance for costs incurred when staying overnight away from their main home.

It is designed to cover mortgage interest, council tax, utility bills, 'white' goods such as new fridges and cookers and other expenses such as furniture and repairs.

Mr Blair - who is currently enjoying a holiday in Miami at the home of Bee Gee Robin Gibb - claimed £8,399 for the upkeep of his home in his Sedgefield constituency - on top of a flat above 11 Downing Street and the Chequers country residence.

John Prescott, who has a lavish flat in Admiralty House on Whitehall, claimed £12,826 for his Mock Tudor detatched home in Hull , even though he also had the run of the 200-acre Dorneywood estate until this summer.

Gordon Brown, who recently moved into the flat above 10 Downing Street after using a privately-owned apartment in Central London, claimed £18,681.

Foreign Secretary Margaret Beckett claimed £21,415, despite using an Admiralty House flat as Environment Secretary, before inheriting a Carlton House Terrace flat and Chevening from Jack Straw. Mr Straw, now leader of the Commons, claimed £17,717.

David Blunkett, who enjoyed the use of a free apartment in Belgravia even after he was forced to resign from the Cabinet for the second time in November 2005, claimed £21,634.

Europe Minister Geoff Hoon, who also occupied an Admiralty House flat until he was demoted from the Cabinet in May, claimed £14,921.

Sir Philip, Parliamentary Commissioner for Standards, has written to the Senior Salaries Review Body, which oversees pay, expenses and pensions for MPs and Ministers, to call for the changes.

He will give evidence before the board's three-yearly review into MPs' pay and allowances shortly.

But its recommendations will have to be voted on by MPs - meaning any radical changes could be blocked.

Sir Philip also called for tougher rules on all MPs expenses after latest figures revealed massive variations in the amounts politicans are claiming - often among those in nextdoor constituencies.

He said MPs should be forced to provide receipts for everything over £50 rather than the current threshold of £250.

MPs can claim back the money spent on everything from stationery and postage to mortgage interest and bills for a second home.

In an interview with The Times, Sir Philip said: 'The degree of variation in the spend on stationery and allowances, and in some aspects of the travel regime, are not easily explicable.

'It is so marked that it is bound to give rise to questions about Members' practice.' MPs pocketed an average of £204,000 in pay and allowances in 2005-06 - equivalent to £124 an hour.

Together the 646 MPs claimed £86.7million in expenses and office allowances - £134,000 each.

Their £60,000 annual salaries cost taxpayers a further £39 million.

The costliest MP was Labour's Eric Joyce, who racked up expenses worth £174,000.

He claimed the most in travel allowances and spent £45,000 jetting between London and his Falkirk constituency near Glasgow - higher than the bill for MPs in the most remote constituencies of the Shetlands and Orkney islands.

Shadow Constitutional Affairs Secretary Oliver Heald said: 'Given the controversy over the likes of John Prescott and Lord Falconer with their grace and favour homes it's quite right that public confidence in the system be maintained.

'People will be asking if Ministers should be given the allowance whilst they enjoy the use of Government residences.

'This clearly needs to be looked at to ensure taxpayers' money isn't being wasted.'

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