Expenses row: 27 MPs let out London homes while claiming taxpayers’ money to rent capital property

MPs are embroiled in a new expenses row after it emerged that 27 are letting out London homes at the same time as claiming public money to rent in the City.

• 27 MPs let London property while renting in capital

• Four politicians rent homes from other MPs

• Commons Speaker attempted to suppress details

Former defence secretary Liam Fox, shadow ministers Andy Burnham, Jim Murphy and Chris Bryant, and Communities Minister Don Foster are among those listed as raking in income from properties while receiving up to £20,000 a year in expenses.

Although the practice does not break any rules, it will fuel concerns that politicians are still able to profit from Commons allowances.

The Independent Parliamentary Standards Authority’s (Ipsa) blanket ban on MPs claiming mortgage interest came into effect this summer. They are now only permitted to receive expenses for renting.

The move was intended to head off criticism after the scandal three years ago showed politicians had been using public money to build up property portfolios. However, it also appears to have created an incentive for many to vacate homes they own.

Research identified Tory MPs David Amess and Peter Luff, and Liberal Democrat ex-defence minister Nick Harvey among those letting out properties in the capital while also claiming expenses for renting.

The names could only be deduced after Ipsa released partial post codes of taxpayer-funded second homes – which could then be cross-referenced with the parliamentary register of interests. The disclosure followed linked concerns that MPs are able to exploit a “loophole” in the rules to rent properties to colleagues, who then claim the costs on

expenses.

It is understood that four MPs are currently renting from four other MPs – although there are no cases of home “swaps”.

Linda Riordan, the Labour MP for Halifax, lets her London flat to fellow Labour MP Iain McKenzie for £18,720 a year.

Earlier this week, Commons Speaker John Bercow was accused of trying to suppress details of the matter after warning Ipsa that revealing the identities of politicians’ landlords would be a “security risk”.

The watchdog had been due to disclose the material in response to another Freedom of Information (FOI) request. However, the process has now been put on hold in the wake of Mr Bercow’s intervention.

Matthew Sinclair, chief executive of the TaxPayers’ Alliance, said: “If MPs are again found to have exploited the expenses system, it will be another stain on the reputation of Parliament.

“It was the cry that ‘it’s all within the rules’ combined with attempts to suppress the publication of claims that made the MPs’ expenses crisis three years ago so toxic. Whilst the rules may not technically prevent MPs from renting properties to one another, it is certainly against the spirit of those rules.”

Asked whether David Cameron was concerned about MPs renting out their flats, a Downing Street spokeswoman said: “Clearly the Prime Minister is committed to transparency, and this government has done more than any other in terms of ensuring transparency, but, in this particular instance, it is a matter for Ipsa.

Sir Christopher Kelly, chairman of the Committee on Standards in Public Life, said: “The principles here are clear – MPs should be properly reimbursed for costs they incur but not obtain personal financial advantage from the system.

“If it is established that is what has been happening here, it is clearly against the spirit of the new arrangements even if it is not technically against the rules.

“The security issues relating to publication of addresses cannot be insurmountable.”

The following are a list of MPs who are claiming rent while letting out another property:

David Amess, Southend West, Conservative; Clive Betts, Sheffield South East, Labour; Chris Bryant, Rhondda, Labour; Aidan Burley, Cannock Chase, Conservative; Andy Burnham, Leigh, Labour; William Cash, Stone, Conservative; Damian Collins, Folkestone and Hythe, Conservative; David Crausby, Bolton North East, Labour; Ian Davidson, Glasgow South West, Labour; Philip Davies, Shipley, Conservative; Don Foster, Bath, Liberal Democrat; Liam Fox, North Somerset, Conservative; George Freeman, Mid Norfolk, Conservative; Robert Goodwill, Scarborough and Whitby, Conservative; Nick Harvey, North Devon, Liberal Democrats; Stephen Hepburn, Jarrow, Labour; Charles Kennedy, Ross, Skye and Lochaber, Liberal Democrats; Jessica Lee, Erewash, Conservative; Peter Luff, Mid Worcestershire, Conservative; Anne Marie Morris, Newton Abbot, Conservative; Meg Munn, Sheffield Heeley, Labour; Jim Murphy, East Renfrewshire, Labour; Angus Robertson, Moray, SNP; Chris Ruane, Vale of Clwyd, Labour; Jon Trickett, Hemsworth, Labour; Andrew Turner, Isle of White, Conservative; Ben Wallace, Wyre and Preston North, Conservative.