Thursday, November 14, 2013

New expenses scandal as one in three MPs use taxpayers' cash to rent constituency bases - from their own parties


Deputy PM Nick Clegg and Tory Jeremy Hunt are among 244 MPs accused of milking the system to swell electoral warchests

Cosy deal: Nick Clegg
Cosy deal: Nick Clegg
MPs have been engulfed in a new expenses scandal after funnelling more than £3.6million of taxpayers cash into party coffers.

One in three MPs, including almost half of the Cabinet, have been renting constituency offices from their party using Commons allowances.

Deputy PM Nick Clegg and multi-millionaire Tory Jeremy Hunt are among the 244 MPs who have been accused of milking the system to swell their electoral warchests.

The cosy deals between MPs and their parties have cost the taxpayer almost £180,000 since the General Election.

Claims would have been £178,120 lower since the election if MPs renting from political parties had been charged the average rent from commercial landlords.

Some 244 leases were made from a political party between May 2010 and March this year, compared with 477 from other bodies or individuals.

Expenses watchdogs are now reviewing the practice after demands for an end to the “backdoor subsidy”.

Jonathan Isaby, of pressure group the TaxPayers’ Alliance, said: “It’s one thing if a local political party offers their MP and staff free use of a desk or an office, but quite another for it to be sending taxpayers an annual invoice for thousands of pounds.

“Often this is space that would not in any case be available to anyone else on commercial terms.”

Mr Isaby added: “It’s effectively a back-door subsidy to political parties that is exploiting an allowance meant to assist MPs in their work serving their constituents, not boost the coffers of their re-election campaign.”

Rents have to be independently assessed if an MP signs a lease with their own party.

But taxpayers are still forking out more for offices that are owned by the parties than those let commercially, figures from the Independent Parliamentary Standards Authority (IPSA) revealed.

The average lease with a party has cost £14,886 since the election, compared to £14,156 where the landlord is not a political party,

Tories make up more than half of the MPs who are renting from their party.

Nine Cabinet ministers are among 140 MP who have channelled more than £1.6million into Tory coffers.

Another £1.2million has been claimed by 68 Labour MPs who rent from their party.

And Nick Clegg is among 30 Liberal Democrats who have claimed more than £600,000, paying £27,759.68 in rent to Sheffield Hallam Liberal Democrats.


Ed Davey
Highest claims: Hapless Ed Davey

His Lib Dem side-kick Ed Davey has the highest claims of any Cabinet minister renting from their party.

The hapless Energy Secretary has paid more than £43,000 of taxpayers’ cash to the Kingston Liberal Democrat Property Co. Ltd.

Francis Maude, who also attends Cabinet, is the most expensive Tory. He has paid £32,187.78 in rent to his local Horsham Conservative Association.

Other Cabinet minister renting from their party are Lib Dem Danny Alexander and Tories Andrew Lansley, Chris Grayling, Sir George Young, Grant Shapps, Iain Duncan Smith, Michael Gove and Justine Greening.
In total they have channelled almost £300,000 to their party since the election.

There are 14 Opposition MPs who rent from the Labour Party Properties Ltd, a business set up to handle the tenancies.

They include former Cabinet minister John Denham, who served at Ed Miliband’s Parliamentary bag carrier, who has paid the firm £16,500 since the election.

The Labour leader is among more than 300 MPs who rent a constituency office commercially. Another 75 have not had a taxpayer-funded lease.

His brother David Miliband paid £16,000 in rent to the South Shield Constituency Labour Party before quitting Parliament.

Ten Labour MPs rent from unions and seven, including party policy chief Jon Cruddas, have received political donations from their landlords.


MP for Stratford on Avon Nadhim Zahawi
Another row: Nadhim Zahawi
 
Expenses row Tory Nadhim Zahawi, the multi-millionaire tycoon who wrongly claimed for his stables, has paid £9,000 to Stratford-upon-Avon Conservative Association.

Nadine “Mad Nad” Dorries, who has also faced rows over her claims, has handed Mid-Bedfordshire Conservative Association £8,163.63.

Lib Dem President Tim Farron has paid his local Westmoreland and Lonsdale party £19,277.8 of taxpayers’ cash.

Labour MP Ian Murray has paid £5,847.74 in office rent to Nigel Griffiths, who used to represent his Edinburgh South seat.

Shamed Griffiths quit Parliament at the last election he admitted cheating on his wife with a mystery brunette in the House of Commons.

Mr Murray said that the constituency office was well established and that he had looked around for something that was better value but had not found it.

All three main parties stressed their MPs were operating within the rules and rents were set independently.

A Tory spokesman said: “IPSA is the body independent of MPs and Parliament, which has responsibility for drawing up and running the scheme by which MPs claim expenses.

“The rent MPs pay to a political party or constituency association for their constituency offices has to be independently valued at the market rate by a Chartered Surveyor, as specified in IPSA’s rules.”

Lib Dem sources said Ed Davey rented offices in expenses.

A party spokesman added: “MPs are elected to serve their constituents, which Lib Dems take very seriously, so it is right that we have staffed offices to carry out case work, surgeries and other services for constituents.

“These claims go towards the rent or mortgage, maintenance and operational costs of the properties in which MPs have their offices.”

A Labour spokesman said: “IPSA is an independent body which has established the rules surrounding the establishment of MPs’ office rental agreements and all rental agreements have been approved by IPSA.

“It is important that MPs are able to have offices from which to serve their constituents. Clearly these have to be proved to be value for money for the taxpayer.”

Claims by Cabinet ministers renting from their party

:: Deputy PM Nick Clegg, Sheffield Hallam Liberal Democrats, £27,759.68

:: Chief Treasury Secretary Danny Alexander, Inverness East, Nairn and Lochaber Liberal Democrats, £14,409.69

:: Energy Secretary Edward Davey, Kingston Liberal Democrat Property Co. Ltd, £43,232

:: Commons Leader Andrew Lansley, South Cambridgeshire Conservative Association, £21,399.08

:: Justice Secretary Chris Grayling, Epsom and Ewell Conservative Association, £10,406.37

:: Francis Maude, Horsham Conservative Association, £32,187.78

:: Chief Whip Sir George Young, North West Hampshire Conservative Association, £15,626.02

:: Tory chairman Grant Shapps, Welwyn Hatfield Conservative Association, £18,000

:: Work Secretary Iain Duncan Smith, Chingford & Woodford Green Conservative Association, £23,380

:: Health Secretary Jeremy Hunt, South West Surrey Conservative Association, £15,874.71

:: Education Secretary Michael Gove, Surrey Heath Conservatives, £14,791.73

:: Development Secretary Justine Greening, Wandsworth Conservative Group, £20,667.64

:: Welsh Secretary David Jones, Clwyd West Conservative Association, £19,604

:: Northern Ireland Secretary Theresa Villiers, Chipping Barnet Conservative Association, £12,393

TOTAL £289,731.70

Mirror