Wednesday, 3 June 2009

MPs' expenses: Departing MPs milked system to the end

MPs who left Parliament at the last election made thousands of pounds from the expenses system in the months just before or after their departure, The Daily Telegraph can disclose.

 

Some of those who resigned or lost marginal seats in 2005 have since made tens of thousands of pounds selling or renting out flats that had been funded by the taxpayer.

Other departing MPs passed subsidised properties to their children, while some who had already announced they were stepping down spent thousands of pounds of taxpayers' money furnishing or redecorating homes.

The disclosures raise fears that dozens of MPs planning to leave Parliament following the expensesscandal stand to make substantial profits.

Today, The Daily Telegraph reports that at least 11 senior MPs benefited from the parliamentary expenses system after leaving the Commons at the last election. Many retired, rather than losing their seats, and have since been elevated to the House of Lords.

The profits from their taxpayer-funded second homes are on top of the lucrative "parachute" payments and final salary pension schemes they received after stepping down.

There is now growing pressure on party leaders to agree new rules to prevent retiring MPs profiting from taxpayer-funded properties.

Nick Clegg, the Liberal Democrat leader, has already promised that the profits from the sale of second homes by his party's MPs will be paid to the public purse.

The disclosures, over the past 26 days, have prompted an unprecedented collapse in public confidence in the operation of Parliament.

Downing Street announced plans yesterday for a Parliamentary Standards Authority to independently verify the expense claims of MPs in future. A new National Democratic Renewal Council, headed by the Prime Minister, will also begin meeting to draw up proposals for constitutional reform in an attempt to regain public trust.

However, Labour is braced for one of its worst ever results in tomorrow’s local and European elections, and may fall to third place behind the Lib Dems according to some opinion polls.

Gordon Brown is fighting to remain Prime Minister amid growing Labour anger over his failure to deal adequately with the expenses scandal.

More than 300 MPs could resign or lose their seats at the next election. However, many could leave Parliament with sizeable windfalls.

It can be disclosed that three former MPs sold or transferred their taxpayer-funded flats to their children.

Anne Campbell, the former Labour MP, sold her second home in London to her son after she lost her seat. She said that her son had never stayed at the property while she was an MP and the sale to him was at market value.

Lord Kirkwood, a Liberal Democrat, sold his Westminster flat to his daughter for £100,000 – half the market rate. He claimed £5,000 for refurbishments in his final year as an MP.

Lord Tyler, another former Lib Dem MP, also transferred his flat to his daughter.

In 2004 and 2005, Ann Cryer, the Labour MP for Keighley and Ilkley, paid £1,200 a month to live in a Westminster flat owned by her daughter Jane Kilduff.

At the same time, her son John Cryer, then MP for Hornchurch, also nominated his sister’s flat as the address where he claimed the additional costs allowance.

Baroness Morris, the former education secretary, was among many outgoing MPs who spent thousands of pounds furnishing and renovating their properties before the 2005 election.

She spent over £7,000 refurbishing her Westminster flat after the announcement she was stepping down.

Lord Howarth, the former Labour MP, claimed £8,500 for work on his £1.45 million London house. He later sold his “main” home in Wales and still lives in the property that was his “second home”.