Watchdog defends second home scheme amid fresh sleaze claims

Sir Geoffrey Cox, the former Attorney General, is one of the MPs facing claims
PA Wire
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The parliamentary expenses watchdog has defended a scheme that allows MPs to claim for the costs of renting a second home in London while letting properties they own in the capital.

As Boris Johnson’s government tried to shift the focus from the sleaze storm that has engulfed Westminster for the past week, fresh claims emerged that 14 MPs have been using the “loophole” to claim up £22,920 a year to pay rent on accommodation at the same time as charging tenants to live in properties they own.

But the Independent Parliamentary Standards Authority (Ipsa) said there were no plans to review the scheme, which was introduced after the 2009 expenses scandal to stop MPs profiting from buying second homes by claiming mortgage interest payments from the taxpayer.

Ipsa pointed to a consultation last carried out in 2017 which acknowledged that while current arrangements were not perfect, “they are in fact better than any of the options explored”.

A spokeswomen added: “Technically this isn’t a loophole. We have acknowledged it and allowed it. We don’t believe Ipsa has a remit to interfere in MPs’ private arrangements as no taxpayer money is involved.”

Sir Geoffrey Cox, the former Attorney General, is one of the MPs facing claims he used the system to rent a flat while letting a second property he owns in Battersea.

Sir Geoffrey has been referred to the Parliamentary Standards Commissioner for allegedly using his Westminster office to represent the government of the British Virgin Islands (BVI) in a virtual hearing. The Tory MP for Torridge and West Devon denied breaching rules that prohibit MPs using their parliamentary offices for second jobs.

Sir Geoffrey is being paid more than £800,000 for his work for the BVI in a corruption inquiry.

A spokesperson for Sir Geoffrey said he “acted at all times within the rules of the Independent Parliamentary Standard Authority”.

Other MPs using the rent “loophole” include former culture minister John Whittingdale and Robert Goodwill.

Mr Goodwill told The Times the system was “crazy” and added: “When I bought the property I thought I would be living in it for my entire time as MP. Instead we get criticised for Ipsa evicting us and making us rent.” Mr Whittingdale declined to comment.

The focus on MPs’ expenses and second jobs blew up after the Government’s botched attempt to block Tory MP Owen Paterson’s suspension for breaching lobbying rules last week.

Yesterday Mr Johnson tried to shift the focus to his levelling up agenda with a Cabinet “away day” with ministers at Downing Street. However, the Prime Minister faces claims he earned £4 million from outside interests in the past 14 years.

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