Clegg plan would ban MPs' second-home cash claims

Published on Thursday 9 April 2009 21:34

MPs would be banned from claiming expenses to buy second homes under plans put forward yesterday by Liberal Democrat leader Nick Clegg.

Amid renewed public anger at Commons allowance arrangements, he insisted MPs should no longer be able to make massive capital gains on property purchased with taxpayer support.

Under the proposals, they would only be allowed to claim for the rent on a second home, utility bills and council tax.

The moves would put a stop to MPs' claims to cover mortgage interest payments and items of furniture under their accommodation allowance, currently worth 24,222 a year. That figure would be "substantially reduced", while ministers with grace-and-favour properties would be prevented from claiming for a second home at all.

Many MPs have made thousands of pounds on taxpayer-funded second homes in the property boom since 1997.

Mr Clegg is understood to be looking at whether at least a portion of those profits should be reimbursed to the Treasury when properties are sold.