Minister brought back after expenses row told: You could lose job again

Published on Thursday 11 June 2009 22:03

GORDON Brown has placed controversial communities minister Shahid Malik on notice that he will be forced out of government for a second time if his expenses claims are found to have breached the rules.

Mr Malik, who returned to government this week after being forced to step down for a month before being cleared of failing to declare a discounted rent deal, has come under further pressure amid allegations he claimed public cash to subsidise two homes simultaneously.

The Labour MP for Dewsbury denies the claims, while the Prime Minister has rejected the suggestion he had been too quick to restore Mr Malik to public office.

But Mr Brown made clear yesterday that all of Mr Malik's expenses claims would be scrutinised by parliament's new independent auditor, and he warned: "If there's any difficulty or any impropriety, action will have to be taken."

Today, Mr Brown will look to drive forward his pledge to regain the political agenda in the wake of the MPs' expenses scandal by chairing a special Cabinet meeting on "public service reform and delivery", with proposals expected in the next weeks.

MPs' expenses for the past four years are to be published online next week, while new laws are expected to be passed by the end of July establishing an external auditor and binding code of conduct that could result in MPs guilty of financial misconduct being forced to quit.

A report into the initial allegation against Mr Malik was published late on Wednesday night, after Downing Street bowed to pressure – and a request from Mr Malik himself – to release the document.

The investigation had been conducted at the Prime Minister's request after Mr Malik was alleged to have breached the ministerial code of conduct by failing to declare a "below market rent" deal for his constituency home.

Between 2004 and 2008, Mr Malik paid 320 a month for an unfurnished, two-bedroom home in Dewsbury. He then moved into the adjacent three-bedroom house, and paid the same landlord 620 a month in rent – topping up an existing 320 monthly direct debit with a 300 monthly cash payment. In his report, Sir Philip Mawer, the Prime Minister's adviser on ministerial interests, said he was satisfied Mr Malik had been charged a "market rent" for both properties and for his constituency office.

But he said it was "unfortunate" the MP had not obtained a written rental agreement or receipts for his rent payments.

Mr Malik had argued that his landlord preferred to be paid in cash because he was an observant Muslim and this fitted with his "religious and cultural norms". He has since told the Prime Minister he has obtained a written rental contract and will pay all sums by direct debit.

Yesterday, Mr Malik was forced to deny that he had claimed for his constituency home at the same time as his London "second home" by designating part of the Dewsbury property as an office – MPs are allowed to designate their home as their office and this is paid separately to living accommodation.

This resulted in No 10 facing a new barrage of questions about Mr Malik's affairs. The Prime Minister's spokesman said the new claims related to Mr Malik's status as an MP rather than a minister, and Mr Brown had no reason to believe there had been a breach of the code.

Mr Malik said yesterday: "I have never claimed anything from the public purse for any living accommodation, apart from that which is permissible for my second home.

"I have certainly not claimed a penny from the public purse for my designated main home."

Westminster's standards watchdog, John Lyon, yesterday confirmed he had received a complaint regarding Mr Malik.

Flint: 'I quit because my loyalty was questioned'

CAROLINE Flint, who accused the Prime Minister of treating women like "window dressing" when she resigned from the government in a blaze of anger last week, yesterday said she left because Gordon Brown had questioned her loyalty.

Ms Flint quit her post as Europe Minister a day after pledging her loyalty to Mr Brown, in a move portrayed as a "stiletto in the back" of the Prime Minister following the resignations of Cabinet ministers James Purnell, Hazel Blears and Jacqui Smith.

At the time, Ms Flint, who was allowed to attend Cabinet meetings on an occasional basis, was understood to be furious at not being offered a promotion. But yesterday she said she believed Mr Brown had been trying to check whether she was plotting against him.

She said: "Individuals' names were mentioned to me who seemed to be part of a plot against the Prime Minister and my loyalty was questioned.

"The reason I resigned was because I did not feel that the Prime Minster had full confidence in my loyalty."

This was denied by Downing Street, which dismissed the suggestion of a "loyalty test".

Mr Brown's spokesman said: "That is not a version of events we would recognise.

"The Prime Minister offered Caroline Flint a promotion, giving her the opportunity to attend every meeting of the Cabinet."

Meanwhile, George Osborne, the shadow chancellor, denied he had milked his expenses after reports he had "flipped" the designation of his London and constituency homes to claim around 100,000 in second homes allowance.

He claimed for his London home but then switched to a farmhouse in his Cheshire constituency, which he had funded by increasing the size of his London mortgage. He later took out a 450,000 mortgage on the farmhouse and claimed expenses on interest payments.

Contenders

SIR Menzies Campbell, the former Liberal Democrat leader, has entered the race to become the next Commons Speaker with a pledge to end the "three-day week" at Westminster.

Sir Ming joins a list of at least 12 MPs keen to succeed Michael Martin, who steps down on 21 June, with a successor being elected the following day.

The MP for North East Fife has long been considered a contender, but may have been damaged by revelations that he used his taxpayer-funded expenses to hire an interior designer to oversee a 10,000 refurbishment of his London flat. He later promised to repay 1,490 paid to the designer.

In his Speaker's manifesto, he said the Commons should sit into the summer recess to resolve the issue of expenses and vowed to make parliament "transparent, accountable and relevant". He said the "pageantry" of the state opening of parliament could be retained, but he would rename the Queen's Speech the "Prime Minister's Speech", adding that the job should not be a "reward for long service".

Ann Widdecombe has also thrown her hat into the ring, but the favourite is the Conservative MP John Bercow, who wants the Speaker to become a public ambassador for MPs. Other contenders are Sir Alan Beith, Margaret Beckett, Sir George Young, Frank Field, Richard Shepherd, Parmjit Dhanda, Sir Patrick Cormack, Sir Michael Lord and Sir Alan Haselhurst.