MPs MUST SUBJECT THEIR EXPENSES TO INDEPENDENT SPOT CHECKS TO RESTORE PUBLIC TRUST

5.00.00pm BST (GMT +0100) Fri 4th Jul 2008

Sutton and Cheam MP, Paul Burstow, has condemned Labour and Conservative MPs who voted against plans to tighten up the expense rules and introduce independent spot checks, describing it as voting for the sugar coating without taking any of the medicine. Mr Burstow was one of the minority of MPs who backed a package of reforms which would have seen a more rigorous audit of how MPs use their allowances.

The package had been drawn up by the Members Estimates Committee (MEC), a cross party committee of MPs, to restore public confidence in the Parliament.

In his role as Liberal Democrat Chief Whip Mr Burstow is working with Party Leader, Nick Clegg, to implement as many recommendations of the MEC as possible and to further improve transparency. These will include:

· Introducing an independent audit of expenses for all Liberal Democrat MPs. The Liberal Democrat Chief Whip, Paul Burstow, will hold discussions with the Institute of Chartered Accountants shortly about the detailed implementation this proposal;

· Establishing an independently chaired Audit Board for the Party to oversee issues of probity and integrity; and

· Publishing a detailed breakdown of expenses of all Liberal Democrat Shadow Cabinet members.

Commenting Paul Burstow MP said: "Those MPs who voted for the sugar coating but refused to swallow the medicine have let Parliament down. The proposals put together by the Members Estimates Committee were a balanced package aimed at bringing our practice into line with the best of the public and private sectors.

"How can those MPs who voted to water down the proposals hope to restore public trust in politicians and parliament if they behave in this way? I will be meeting with the Chartered Institute of Accountants to ask for their advice on devising a system of practice assurance of the sort proposed by the MEC."

ENDS

Notes to Editors

Under the current rules MPs representing outer London constituencies, like Sutton and Cheam, and constituencies bordering London, like Bandstead and Reigate, can claim an additional cost allowance (ACA) of £24,006. Paul Burstow has never claimed the ACA.

The Members Estimates Committee also proposed a new system of practice assurance. The relevant recommendations are reproduced below:

Audit and assurance

1. We recommend that there should be a robust new system of practice assurance involving regular financial health checks on records kept and processes used in Members' offices with outside professional teams covering about 25% of Members each year and every Member each Parliament. (Paragraph 63)

2. We recommend that the House extends the scope of the audit engagement so that it is the same as for other public bodies. The NAO expects that their sampling of claims paid will include one or more transactions relating to at least 20 per cent of MPs each year. (Paragraph 68)

3. We recommend that, from the start of the 2009-10 financial year, the receipt threshold should be reduced from £25 to zero and that all claims, however small, will have to be backed by receipts. (Paragraph 47)

Overnight expenses

13. We recommend that the Additional Costs Allowance be adapted into an overnight expenses allowance, comprising a £19,600 maximum budget for accommodation (excluding furniture, household goods and capital improvements) but operating on the basis of itemised reimbursement and a flat rate of £30 for daily subsistence. (Paragraph 225)

The full report of the MEC can be read at:

http://www.publications.parliament.uk/pa/cm200708/cmselect/cmmemest/578/578i.pdf

172 MPs voted to water down the MECs proposals. Paul Burstow was one of 144 supporting the MEC proposals in full.

149 Labour and 21 Conservative MPs voted to water down the proposals. No Liberal Democrat MP voted to water down the proposals.