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I understand the anger that is felt by many people at some of the claims which have been reported in recent days. While some MPs named are vigorously defending their actions, it is clear that serious wrongs have been done, and that others have taken advantage of the system.
There is no escaping the truth that all MPs, including me, bear responsibility for not tackling much earlier an expenses system which was too lax and too generous. The reputations of all MPs and Parliament itself have been damaged. We have brought it on ourselves and must apologise to you.
So far as my own expenses are concerned, I am anxious that these be published as soon as possible. The intention is that all Ministers will publish their expenses at the same time. We are now in the hands of the Commons authorities who have to process minor amendments and errors before publication.
In outline, though, my returns will show that the great majority cover the core costs of a base to live and work from in London. These are mortgage interest (NOT capital repayment), council tax, utility bills and insurance. The remaining claims represent reasonable costs of repairs and maintenance, essential items, and daily living costs.
I understand that not everyone accepts that MPs need a home in London, or that any contribution should be made to the costs of running or furnishing that home. However, the allowance system was designed to provide some contribution towards these genuinely additional costs, and I have always taken the view that this was fair so long as the costs were reasonable. I will be happy to explain any individual items when my expenses are published.
Before I was an MP, I commuted from Southampton to London for a total of eight years and do understand about commuting. Although my previous jobs involved long and unpredictable hours, the London workload of a committed backbench MP (let alone a Minister) is far higher than anything I had experienced before. A London home is more than a place to stay at night. Most of us work from home, early morning and late evenings.
Since I was elected in 1992 I have, on the advice of the Commons Fees Office, used professional accountants to prepare my tax returns. MP's pay itself is of course very simple and could be dealt with as PAYE. But the taxation of expenditure on our offices - like PCs, office furniture etc - is much more complex and has to be dealt with as part of our personal tax returns. This is why most MPs use professional advisors and why the cost of advice has been allowed as part of the necessary costs of running a constituency office. To the best of my knowledge, whenever I have required complex personal tax advice - for example in calculating capital gains tax - I have always paid this part of the tax bill personally.
There is an urgent need now to clear the air and re-establish trust amongst the public.
In the coming weeks my own expenses will be published.
This week, the Party leaders have agreed an interim set of radical changes to the allowance system, limiting payments to the core costs I mentioned above and capping mortgage interest or rent payments, and daily subsistence.
I hope the House of Commons will also agree to an independent examination of all claims made over the past five years which can not only identify wrong-doing but which could require the repayment of any money which is seen as excessive or inappropriate, even if it was claimed ‘within the rules’
The Labour Party has also confirmed that no sitting MP will be allowed to stand as a Labour candidate at the next election unless the Party has full confidence in them and their integrity.
Finally, I hope and believe that a much tighter and less generous system will be put in place quickly, while we wait for the longer term reforms being proposed by Sir Christopher Kelly.
I hope that this statement goes some way to explaining both my own actions and the changes that are now being made. There is no easy way of repairing the damage that has been done, but all MPs will need to work hard to regain public confidence.
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