MPs' Expenses

22 January 2009

The subject of MPs' expenditure has exercised the attention of both the public and Parliament because of the actions of a small number of MPs who grossly abused the system. I well understand the concern felt by many but I do believe that the media reporting has been incompetent in the way it has portrayed what Parliament does, and proposes to do, with respect to the publication of MPs’ expenditure.

The House of Commons will vote today on a set of proposals governing MPs' expenditure that as a package will ensure that there are clear rules on all allowances, that there is a robust system of audit and that there is a publication scheme that provides more information than ever before.

The public have a right to know there is a clear and reasonable set of rules attached to MPs' expenditure, that there is a robust form of audit, that a transparent publication scheme is in operation covering how much each MP spends, a clear system of accountability to ensure MPs comply with these rules and the cost of such a scheme is proportionate in cost to the public purse.

The new publication scheme will mean that the House of Commons will not only continue to publish everything it already does with regard to MPs' expenditure but will build on that information and now go on to disclose double the amount that it has published regularly so far under a series of headings.

This will enable a constituent to easily see how much their MP has claimed annually under 26 categories including mortgage interest, rent, council tax, fixtures, fittings and furnishings.

The kind of payments that MPs can claim to fulfil their parliamentary duties are grouped into five main sections covering office costs, additional accommodation, communication expenditure, staffing expenditure and travel between Parliament and constituency.

The new publication scheme that I will vote for today will give much more information about how much every MP claims under each of these groups and will clearly explain how much is spent on mortgage interest, council tax etc under accommodation. The costs of running an office will reveal how much is spent on rent, office equipment, telephones etc. Communications expenditure will show how much is spent ensuring I keep in touch with my constituents through websites, reports, postage etc. You will be able to see how much I spent on staff in order to meet my constituents' needs for representation, and travel costs will also be clearly set out.

This new publication scheme will be backed up by a new system of robust audit which will mean that the National Audit Office will, for the first time, do a complete, regular audit of all MPs' expenditure. In addition a new internal audit process will be created, strengthening the system and ensuring that all MPs abide by the rules. This will mean that MPs' expenses will be audited down to receipt level and the public can be reassured that every claim is made in accordance with clear rules.

In addition MPs will be asked to agree a new "Green Book" laying out clear new rules including stronger contractual arrangements for paying staff.

I believe this new system will help clarify what MPs spend to fulfil their parliamentary and constituency duties.


Below are details from the Order Paper of what MPs will vote for today. I would invite anyone to tell me what item of expenditure the public will be denied access to which they ought to know.

1. Ms Harriet Harman: That, at this day's sitting, the Speaker shall put the Questions necessary to dispose of proceedings on the Motions in the name of Ms Harriet Harman relating to Payments to hon. Members (Publication Scheme), Members' Allowances (Green Book), Members's Allowances (Audit and Assurance) and Committee on Members' Allowances not later than 5 pm; in each case such Questions shall include the Questions on any Amendments selected by the Speaker which may then be moved; proceedings may continue, though opposed, after the moment of interruption; and Standing Order No. 41A (Deferred divisions) shall not apply.

2. PAYMENTS TO HON. MEMBERS (PUBLICATION SCHEME)

(1)

(2) In addition, information relating to Members' expenditure from the beginning of the current Parliament shall be published in relation to each financial year, to the extent that such information is separately identifiable, under the following categories:

(a) Administrative and Office Expenditure:

(i) accommodation costs for offices, surgeries, etc;

(ii) office equipment and supplies;

(iii) telephones and other telecommunications;

(iv) professional fees and charges;

(v) agency and other staff costs;

(vi) travel costs;

(vii) utilities;

(i) accommodation costs for offices, surgeries, etc;

(ii) office equipment and supplies;

(iii) telephones and other telecommunications;

(iv) professional fees and charges;

(v) agency and other staff costs;

(vi) travel costs;

(vii) utilities;

(b) Personal Additional Accommodation Expenditure:

(i) mortgage interest;

(ii) rent;

(iii) hotel costs;

(iv) council tax;

(v) fixtures, fittings and furnishings;

(vi) subsistence;

(vii) other household costs, including service charges, utilities, telecommunications, maintenance and repairs;

(i) mortgage interest;

(ii) rent;

(iii) hotel costs;

(iv) council tax;

(v) fixtures, fittings and furnishings;

(vi) subsistence;

(vii) other household costs, including service charges, utilities, telecommunications, maintenance and repairs;

(c) Communications Expenditure:

(i) websites;

(ii) reports and surveys;

(iii) delivery charges, postage and stationery;

(iv) advertising;

(v) equipment;

(i) websites;

(ii) reports and surveys;

(iii) delivery charges, postage and stationery;

(iv) advertising;

(v) equipment;

(d) Staffing Expenditure;

(e) Travel Expenditure in relation to travel by Members:

(i) car, including third party vehicle rental and mileage;

(ii) rail;

(iii) air;

(iv) other UK and European travel;

(i) car, including third party vehicle rental and mileage;

(ii) rail;

(iii) air;

(iv) other UK and European travel;

(f) Resettlement Grant;

(g) Winding-up Expenditure;

(3) The Committee on Members' Allowances shall keep the categories listed in paragraph (2) above under review and may modify them from time to time as the committee may think necessary or desirable in the interests of clarity, consistency, accountability and effective administration, and conformity with current circumstances.

3. MEMBERS’ ALLOWANCES (GREEN BOOK)

Ms Harriet Harman:

That this House approves the Guide to Members' Allowances (the Green Book), published as Annex 1 to the First Report of the House of Commons Members Estimate Committee (House of Commons Paper No. 142) and endorses the Principles set out in Part 1 of the Green Book as the basis for all claims made by Members;

That the rules set out in the Green Book shall govern all expenditure on Members' allowances with respect to all claims for expenditure arising on or after 1 April 2009;

That the Members Estimate Committee shall carry out a review of the provisions of the resolutions of this House relating to such expenditure, make such modifications to them as are necessary to ensure that they are consistent with the provisions in the Green Book, and report to the House; and

That this House thanks Ms Kay Carberry CBE, nominated by the Trades Union Congress, and Mr Keith Bradford, nominated by the Confederation of British Industry, for having acted as the Speaker's external appointees to the Advisory Panel on Members' Allowances.

4. MEMBERS’ ALLOWANCES (AUDIT AND ASSURANCE)

Ms Harriet Harman:

That this House approves the arrangements for the audit and assurance of Members' allowances set out in the report of the Members Estimate Audit Committee to the House of Commons Members Estimate Committee, published as Annex 3 to the First Report of the House of Commons Members Estimate Committee (House of Commons Paper No. 142).