Switchback Hoon built £1.7m property empire off expenses

Transport Secretary Geoff Hoon built up a £1.7 million property empire with the help of the expenses system.

The secret files disclose that he switched around his designated "second home" in a way that opened him to accusations of milking the system.

As Defence Secretary until 2006, he lived free in London in a grace-and-favour ministerial apartment in Admiralty House and rented out a London flat he owned. At this time he declared his Derbyshire constituency address was his second home and claimed expenses on its running costs.

In 2004/05, he claimed £20,902 for it, with thousands spent on renovations and refurbishments on a property now estimated to be worth more than £600,000,

When he lost his free apartment in 2006, he bought a new Georgian townhouse in London and changed his declaration to say that was his second home. That allowed him to claim for money spent on the new property - £21,995 in 2006/07 and £23,083 in 2007/8 - the maximum allowed.

Among his claims was £1,199 for an LCD TV in 2005. The fees office said they would pay no more than £750 towards it. He paid £500 for new flooring, bought a wardrobe, lighting, a washing machine, and furniture. He bought a second TV for £449 and claimed £800 for cleaning curtains and carpets. His monthly mortgage payments, picked up by the taxpayer, rose from £270 to almost £900.

Mr Hoon's wife also reportedly bought a holiday cottage in Walberswick on the Suffolk coast giving the family a property portfolio worth £1.7 million.

In a statement, Mr Hoon said that although he paid no rent on his Admiralty House flat, he still had high costs for living in two places.

"I was told by the fees office that this was entirely within the rules," he said.