Professional Documents
Culture Documents
DISINFECTING PARLIAMENT
Sir Christopher Kelly's Committee on Standards in Public
Life review of MPs' expenses ‐ The Shadow Report
Juliet Samuel
Published by GGN Ltd
Copyright © Juliet Samuel, Sunlight Centre for Open Politics
October 2009
CONTENTS
FOREWORD BY DOUGLAS CARSWELL MP ........................................................... 4
INTRODUCTION ....................................................................................... 5
1 MPS’ PAY ............................................................................................. 7
1.1 BASIC PAY ........................................................................................................................................... 8
1.2 SUPPLEMENTARY SALARIES ................................................................................................................ 8
1.4 RELATIVE WAGE RISES ...................................................................................................................... 10
1.5 PENSIONS ......................................................................................................................................... 11
1.6 PERKS ............................................................................................................................................... 12
1.7 OVERALL ........................................................................................................................................... 12
2 HOW EXPENSES WORK ................................................... 13
2.1 THE NEW MP ................................................................................................................................... 13
2.2 HOUSE OF COMMONS ADMINISTRATION ........................................................................................ 14
2.2.I NECESSARY FUNCTIONS ................................................................................................................................ 14
2.2.II THE PROLIFERATION OF COMMITTEES ............................................................................................................. 14
2.2.III A FLOW‐CHART: VISUALISING PARLIAMENTARY ADMINISTRATION .................................................................... 14
2.2.IV ADMINISTRATIVE FUNCTIONS: A MORE DETAILED LOOK ...................................................................................... 16
2.3 THE ALLOWANCES: A BRIEF LOOK .................................................................................................... 22
3 WHAT WORKS, WHAT DOESN’T ......................................... 24
3.1 THE ALLOWANCES: “WHOLLY, NECESSARILY AND EXCLUSIVELY” ................................................................. 24
3.1.I WHAT WORKS .......................................................................................................................................................... 24
3.1.II WHAT DOESN’T ........................................................................................................................................................ 24
3.2 OUTSIDE INTERESTS: LOBBYISTS IN THE WOODWORK ............................................................................... 27
3.2.I WHAT WORKS .......................................................................................................................................................... 27
3.2.II WHAT DOESN’T ........................................................................................................................................................ 27
3.3 ADMINSTRATION: THE BUCK STOPS... WHERE? ....................................................................................... 28
3.3.I WHAT WORKS .......................................................................................................................................................... 28
3.3.II WHAT DOESN’T ........................................................................................................................................................ 28
4 RECOMMENDATIONS .................................................... 31
4.1 SIMPLIFY AND SCALE BACK EXPENSES ............................................................................................... 32
4.2 HOLD PARLIAMENT TO ACCOUNT BY ABOLISHING ADMINISTRATIVE CONFUSION ............................. 34
4.3 ESTABLISH AN EXPENSES BANK ACCOUNT AND USER‐FRIENDLY DATABASE ....................................... 39
4.4 FULL PUBLICATION AND PUBLICITY ................................................................................................... 41
4.5 MEANGINFUL PENALTIES FOR BREAKING THE RULES ......................................................................... 42
CONCLUDING REMARKS .................................................... 44
APPENDIX ............................................................................................................................................. 45
LIST OF FIGURES
Figure 1: Income distribution ‐ Number of people (millions) versus income (£ per week) ................................. 8
Figure 2: Many MPs already receive extra salaries ............................................................................................. 8
Figure 3: MPs are paid adequately compared to politicians in other developed countries ................................ 9
Figure 4: Members of Parliament salaries ........................................................................................................ 10
Figure 5: Members of Parliament salaries per thousands of people represented ............................................ 10
Figure 7: Exchequer contributions to pension funds ......................................................................................... 11
Figure 8: MP contribution and accrual rates ..................................................................................................... 11
Figure 9: Visualisation of House of Commons and Expenses Administration ................................................... 15
Figure 10: Detailed information on Administrative Bodies ............................................................................... 17
Figure 11: List of expenses ................................................................................................................................. 22
Figure 12: Expenses administration ‐ the case for simplification ..................................................................... 29
Figure 13: Artist's impression of the Olympic Village ........................................................................................ 32
Figure 14: Proposal for a reformed administrative structure for MPs’ expenses ............................................. 34
Figure 15: Number of official roles in expenses system is dramatically reduced .............................................. 35
Figure 16: An MPs' expense debit card .............................................................................................................. 39
Figure 17: Mock‐up of a transparent expenses database .................................... Error! Bookmark not defined.
Figure 18: Schedule of sanctions to dis‐incentivise corruption ......................................................................... 43
FOREWORD
by Douglas Carswell MP
Cleaning up Westminster is too important a task to leave to MPs,
quangocrats or professional commentators. That is why this report is so
important.
The House of Commons got into a mess over MPs expenses because the
political class failed to be straight with people. Without transparency, those
in SW1 created a system of generous tax‐free allowances and off‐balance
sheet accounting. Without openness, Westminster developed the ethics of
Enron.
Elected lawmakers must have some recourse to public funds to do their
jobs. MPs do need to be paid. If not, only rich plutocrats could stand for
office. But whenever public money is spent, the public has an absolute right
to see how their money gets spent.
Defending the indefensible on the basis that it was all “within the rules” will
not do. It has merely shown quite how far our Parliament – the nation’s rule
makers – have lost their way. Change does not just mean cleaning up
expenses. It means restoring purpose to Parliament.
Changing behaviour can require external discipline. But it is not enough to
impose a requirement on every MP to publish details of what they claim.
Changing the behaviour of our politicians also means making sure that every
MP faces a properly competitive election contest every few years. And that
means the option of open primaries and recall elections in every
constituency.
We need a new deal in politics; an end to MPs perks, fewer politicians, real
legislative work rather than self‐aggrandising, citizen lawmakers rather than
professional politicians. That will only happen when we get proper, genuine
accountability.
4
INTRODUCTION
“How we see our role is basically to clean the issue backwards. Instead, we ask Parliament to
up the expenses system; to do so in a trust the citizens of this country – to trust them
way which helps begin what I'm sure will with information, with access, and with powers to
be a long and difficult process of hold politicians to account.
restoring trust in public office holders.” If politicians want respect while continuing to
spend public money, they have to show that they
Sir Christopher Kelly, Chair of the realise it is just that – public money. With public
Committee on Standards in Public Life, money should come a public expenses bank
on the Andrew Marr Show, 14th June statement, a public expenses database and,
20091 ultimately, the sovereignty of public judgment on
Time and time again, at the recent hearings of how expenses are used.
the Committee on Standards in Public Life, the Instead, we see the government setting up a
same mantra was repeated: “The prime purpose of new “independent” bureaucracy to play the king
your Committee and generally, I suspect,” said over expenses, with absolutely no statutory
John Drysdale of Transparency International, “is to publication requirements. We see redactions,
restore the trust and confidence in Parliament and obfuscation and mere lip service paid to the idea
in MPs.” of accountability.
Unlike the official Committee’s report, this That is why, in this alternative, “shadow”
report does not seek to rebuild public trust in report to Parliament’s expenses inquiry, we
Parliament or British democracy. That outlook has recommend full publication of all expenses, scaling
back the scope for abuse and bringing all the
obscure decision‐making bodies, ad hoc audits and
1
BBC:
http://news.bbc.co.uk/1/hi/programmes/andrew_marr_show/ investigatory procedures into full view.
8099326.stm
Specifically, we recommend that Parliament:
1. SIMPLIFY AND SCALE BACK EXPENSES: Provide MPs with housing in the
Olympic Village and stop paying generous extra salaries to party Whips
and obscure officials.
2. HOLD PARLIAMENT ACCOUNTABLE BY ABOLISHING REDUNDANT BODIES:
Get rid of the buck‐passing committees and bureaucracies by cutting at
least 32 officials out of the expenses system.
3. ESTABLISH A SINGLE MPs' BANK ACCOUNT, A PUBLIC DATABASE AND FULL
AUDIT: Let the public check MPs’ expenses statements just as we check
our own bank statements and set up a properly audited public database.
4. PUBLISH EVERYTHING AND OPEN UP ACCESS: Remove the gag on the
Commissioner, bring parliamentary investigations out of the shadows
with televised press conferences and put lobbyists on a compulsory
register.
5. IMPOSE PUNISHMENTS FOR MPs WHO ABUSE THEIR POWER: Give citizens
the right to trigger by‐elections and make it possible to get rid of
dishonest Members.
Overall, we calculate that these changes are worth about £75 million in savings in
the parliamentary budget (for a breakdown of this figure, see page 31).
5
The following report goes through the expenses system in four parts:
‐ In Section One, it is shown that MPs cannot fall back on the
excuse that they are underpaid – by every comparator, MPs are
quite adequately paid.
‐ Section Two explain exactly how decisions get made in the
expenses system, who is responsible for what (Section 2.2), and
provide a brief outline of when different expenses were
introduced and what evidence is required to claim them (Section
2.3).
‐ In Section Three, the report details, point by point, where the
current system fails. The various allowances are dealt with in
Section 3.1, outside interests in Section 3.2, and parliamentary
administration in Section 3.3.
‐ Finally, Section Four outlines which expenses need to be
abolished, how information about expenses should be published,
and what a fully transparent and accountable system would look
like.
AUTHOR BIOGRAPHY: Juliet Samuel
Juliet spent the last four years studying for
her BA in Social Studies at Harvard
University. She specialised in the work of
theorists such as Hannah Arendt and
Walter Benjamin and continues to be a
contributing writer to the DC‐based
magazine, Reason. She returned to join
the Sunlight Centre for Open Politics in
June and has spent three months getting
to grips with the expenses crisis and what
it means for British democracy.
6
1 MPs’ PAY
The most common narrative of the current expenses system. Advocates of this policy also
expenses crisis takes its roots back twenty or thirty suggest that it be accompanied by an abolition or
years. In one version, the issue goes back to significant reduction in the amounts claimable on
Thatcher who, it is said, set up a generous expenses.
expenses system in order to avoid giving MPs a The assumption that MPs are underpaid,
politically tricky salary raise. These and similar however, needs to be examined. By any relative
narratives are based on the premise that MPs have measure, MPs seem to be well‐paid. Whether one
been consistently underpaid for their work for the examines basic pay, ministerial salaries, compares
last few decades. their remuneration with those of other developed
The perceived solution is supposedly, countries’ politicians or compares their pension
therefore, to increase MPs’ salaries and thereby schemes, the answer is the same: There is little
avoid covert and corrupt pay‐rises through the case for a pay rise.
LOGICAL FALLACY: The “woefully underpaid” political classes
David Blunkett MP, in his submission to the Committee on Standards in Public Life (CSPL): “...the most logical
change would be to bite the bullet and pay MPs the kind of salary they would expected to receive in equivalent
jobs – head of a further education college, a doctor after several years in practice, or a senior civil servant...”2
The Times leading editorial, 22nd April 2009: “The truth is that our politicians are woefully underpaid. This is
not a popular thing to say. But if we want a professional political class, we must pay professional rates.”3
Brian Donohoe MP, in his submission to the Committee on Standards in Public Life (CSPL): “Historically, MPs'
remuneration has eroded in real terms. Many members feel aggrieved about this, and to a large extent this
forms the backdrop to the recent controversy.”4
As reported in the Baker Review of Parliamentary Pay and Pensions, three non‐front‐bench members of the
Members Estimate Committee recommended a substantial pay rise for themselves: “[Their memorandum]
argues that the MPs’ salary should be increased by £650 a year (the figure proposed by the SSRB) above
indexation for three years, with a final increase to £75,000 to take effect immediately after the next general
election.”5
Kevin Barron MP, in his submission to the CSPL: “You could argue that the reluctance by parliament to
increase salaries is one of the reasons why you [the Committee on Standards in Public Life] are involved. [...] I
agree it would be possible but perhaps impractical to increase the level of basic pay to form part of simplifying
current arrangement.”6
Verdon Bogdanor, in an article in The Times, 14th May 2009: “Margaret Thatcher, he recalls, ordered an
independent review that recommended rises that would make even Jacqui Smith blush. But that would have
enraged voters. So Mrs Thatcher rejected it. MPs were furious. To appease them, they were encouraged to
supplement their salaries through the expenses system. Recompense would replace remuneration.”7
2
CSPL evidence, 2009: http://www.public‐standards.gov.uk/Library/MP_Exp_E1_Rt_Hon_David_Blunkett_MP.pdf.
3
The Times, April 2009: http://www.timesonline.co.uk/tol/comment/leading_article/article6143456.ece.
4
CSPL evidence, 2009: http://www.public‐standards.gov.uk/Library/MP_Expenses_E494_Brian_Donohoe_MP.pdf.
5
Baker Review: http://baker‐
review.ome.uk.com/binary/documents/Review%20of%20Parliamentary%20Pay%20and%20Pensions%20by%20Sir%20John%20Baker%20C
BE.pdf p6.
6
CSPL evidence, 2009: http://www.public‐standards.gov.uk/Library/MP_Expenses_E201_Kevin_Barron_MP.pdf.
7
The Times, May 2009: http://www.timesonline.co.uk/tol/comment/columnists/guest_contributors/article6282598.ece.
7
ARE MPs UNDERPAID?
1.1 BASIC PAY
The basic salary of an MP is currently £64,766.
This already puts the vast majority of MPs in the Figure 1: Income distribution ‐ Number of people
(millions) versus income (£ per week)13
top decile group for income – i.e., richer than 90%
of the population. An MP with a dependent spouse
and two young children paying average council tax,
for example, is nonetheless still making more than
92% of the population at large.8 And in gross
income alone, MPs make over 250% more than the
average annual salary of £24,908.9
Moreover, the job of being an MP carries with
it numerous privileges aside from salary, including
social status and a sense of meaning and
satisfaction derived from serving the public. Given
that there is no shortage of potential
parliamentary candidates, it seems clear that the
combination of a good salary level and non‐ Figure 2: Many MPs already receive extra salaries14
monetary attractions are both sufficiently Pay (£) Total (£)
attractive as to making standing for office
competitive. Prime Minister 132,923 197,689
Cabinet Minister and 79,754 144,520
1.2 SUPPLEMENTARY SALARIES Lord Chancellor
On top of this basic salary, many MPs are paid Minister of State 41,370 106,136
supplementary salaries. Latest figures suggest that Parliamentary Under 31,401 96,167
there are now 32 ministers of state, who each earn Secretary of State
a supplementary salary of £41,370, for a total salary Solicitor General and 69,491 134,257
of £106,136. There are also currently 23 Cabinet Advocate General
ministers, who each earn a supplementary salary of Government Chief Whip 79,754 144,520
£79,754, for a total salary of £144,520.10,11
Including Whips and other Commons officials, Government Deputy 41,370 106,136
Chief Whip
there are already 83 MPs (that is, 12.8% of all MPs)
Government Whip and 26,624 91,390
earning over £100,000 per annum, putting them in Assistant Whips
the top 2% of earners.12 Speaker 79,754 144,520
Chairman of Ways and 41,370 106,136
Means (Deputy Speaker)
First and Second Deputy 36,360 101,126
Chairman of Ways &
Means
Select and Standing Up to Up to
Committee Chairs 14,366 79,132
Leader of the 73,617 138,383
Opposition
Opposition Chief Whip 41,370 106,136
Deputy Opposition Chief 26,624 91,390
8
Calculated by the Institute of Fiscal Studies for a family of four Whip
paying a council tax of £1421:
http://www.ifs.org.uk/wheredoyoufitin/.
9
National Statistics:
http://www.statistics.gov.uk/cci/nugget.asp?id=285. 13
Institute of Fiscal Studies:
10
House of Commons Factsheet M06, May 2009: http://www.ifs.org.uk/wheredoyoufitin/.
http://www.parliament.uk/documents/upload/M06.pdf 14
Notes: “Pay” is supplementary pay for ministerial post; “Total”
11
Number of Cabinet and junior ministers, Downing Street includes parliamentary salary of £64,766. Only Chairs of
website: http://www.number10.gov.uk/Page19564.
12 committees appointed under Standing Order 152 receive extra
Calculated by the Institute of Fiscal Studies for a family of four
paying a council tax of £1421: pay. Standing Committee Chairman pay depends on length of
http://www.ifs.org.uk/wheredoyoufitin/. service.
8
1.3 COMPARISONS WITH OTHER DEVELOPED COUNTRIES
Comparisons with other developed countries also
show that British parliamentarians are relatively
well‐paid:
Figure 3: MPs are paid adequately compared to
politicians in other developed countries15
Country and Salary in £, Difference Difference Population per
currency converted from UK from UK in lower/salary
using salary in £ % single chamber
Purchasing member in
Power thousands Notes
Parity (i) This table compares gross
base salaries, before tax,
social security, pension
contributions, etc. They take
UK 60,675 n/a n/a 94
no account of allowances,
free travel and other
entitlements. Most salaries
Australia 56,471 ‐4,204 ‐7% 133 for members of Parliaments
are taken from the respective
Parliament or Government
Canada 75,779 +15,104 +25% 107 websites but data for Ireland
and Norway were obtained
from official sources in those
France 57,941 ‐2,734 ‐5% 111 countries. Salaries for Heads
of Government were taken
from official sources where
Germany 59,231 ‐1,444 ‐2% 134 possible but some are based
on press reports. The figures
were checked on 15
Ireland 58,866– ‐1,809– ‐3%–+3% 24 November 2007. (ii)
Purchasing Power Parities
62,621 +1946 (PPP) are used to convert
salaries in national currencies
to the equivalent purchasing
Italy 101,039 +40,364 +67% 94 power in Sterling. This
provides a better comparison
of relative value than
Netherlands 64,336 +3,661 +6% 113 conversion using (often more
volatile) exchange rates. The
New PPP rates have been
51,471 ‐9,204 ‐15% 33 calculated from the OECD
2006 PPP rates, the latest
Zealand available.
(iii) Currently salaries of
members of the European
Norway 43,621 ‐17,054 ‐28% 30 Parliament (MEPs) are the
same as those of members of
EU national Parliaments, so
Spain 29,233 ‐31,442 ‐52% 129 MEPs from the UK are paid
the same as MPs. However,
MEPs’ allowances are
Sweden 42,805 ‐17,870 ‐29% 26 determined by the European
Parliament. From 2009 MEPs
will be paid 38.5% of the
USA 101,975 +41,300 +68% 696 basic salary of a judge of the
European Court of Justice.
15
Senior Salaries Review Body, Parliamentary pay, pensions
and allowances 2007, Report No 64, January 2008, Cm 7270‐1,
Appendix C:
http://www.ome.uk.com/downloads/Review%20of%20Parlia
mentary%20pay%202007%20volume%202.pdf.pdf.
9
Measured both by the sterling value of parliamentary salaries and by pay per size of population the member
represents, the UK is close to the middle of the spectrum:
Figure 4: Members of Parliament salaries (equivalent in £)16 Figure 5: Members of Parliament salaries per
thousands of people represented (equivalent in £)17
1.4 RELATIVE WAGE RISES
Nor have MP’s salaries fallen behind the national average wage:
Figure 6: MP’s salary and other indices (1990 = 100) 18
16
For Ireland, an average of the maximum and minimum salaries has been used.
17
For Ireland, an average of the maximum and minimum salaries has been used.
18
Senior Salaries Review Body (January 2008), Review of Parliamentary pay, pensions and allowances 2007:
http://www.ome.uk.com/downloads/Review%20of%20Parliamentary%20pay%202007%20volume%201.pdf.pdf, p14.
10
1.5 PENSIONS
In order to calculate the actual value of an The above‐stated Exchequer contribution rate
MP’s total compensation package it is also was revised, however, this year. According to the
necessary to take into account the Commons Leader of the House, Harriet Harman, increased
pension scheme. life expectancy meant that Exchequer
MPs are currently enrolled in an unusually contributions were going to have to rise further
generous pension scheme, even among other above the SSRB's recommended level of 20%. In
public sector bodies. Members can choose an response, Harman announced that the cap on
accrual rate of 1/40th or 1/50th, meaning that for accrual (set at 2/3 of final salary) would be
every ten years' service they are entitled to receive extended to a formerly excluded group of MPs
a pension worth a quarter of their final salary, i.e., (those MPs over 65 who joined the scheme before
an MP voted out in 2010 after just five years' June 1989). In addition, Member contributions
service would receive £8095.75 per year from the rose:
age of 65, (over 38% more than the basic state Figure 8: MP contribution and accrual rates22
pension of £4953 per year).19 MPs’ accrual rates Former Revised Accrual rate
also compare favourably with a normal accrual Member Member
rate in the public sector of 1/80th, and one of contribute contribution
1/60th in the private sector.20 rate (% of (% of salary)
The SSRB calculated in 2007 that the Exchequer salary)
would need to contribute 20% or 22% of a 6.00% 7.90% 1/50th
Member's pensionable pay (depending upon 10.00% 11.90% 1/40th
whether the Member contributed at the then‐ Harman assured Parliament that these
standard rates of 6% or 10%). This compared measures would bring the Exchequer contribution
favourably with other public sector pension back down to its acceptable 20% level. In order to
schemes: determine whether the Government Actuary is
Figure 7: Exchequer contributions to associated correct in this forecast, it would be necessary to
pension benefits as a percentage of pensionable conduct a full review of its assumptions and
pay21 (Source: Watson Wyatt) calculations, e.g., its investment strategy and stock
Pension Scheme Defined benefit % of market forecasts. The SSRB is currently engaged in
pensionable pay this review and will report later this year.
Parliamentary Pension 22 It is certainly true that Exchequer contributions
Fund – 40th accrual rate have risen disproportionately in the past six years
(before max. benefits)1 (from 13% to 32.2%)23,24, although this was in part
Parliamentary Pension 20 to make up for its under‐contribution since 1989.25
Fund – 50th accrual rate It remains to be seen if the SSRB will
(before maximum recommend significant changes that will reduce
benefits)1
the Exchequer contribution to its previously
Armed Forces (Colonel) 2 28
recommended 20% level. For the moment,
Civil servic2 18
Local government2 11 however, Exchequer contributions remain at
NHS32 13 31.6% of Members' pension fund. MPs' pensions
Police (Chief 11 are therefore worth between £12,953 (at the
superintendent) 2 SRRB’s unmet target of 20% contributions) and
Teachers2 13 £20,466 per year (at this year's actual
Private sector (median) 17 contribution level).
19
DirectGov, “Understanding the Basic State Pension:
http://www.direct.gov.uk/en/Pensionsandretirementplanning/St
atePension/Basicstatepension/DG_10014671
20 th
1/80 is the common accrual rate for NHS workers and
teachers: http://www.iea.org.uk/files/upld‐book428pdf?.pdf,
th 22
p13; 1/60 is the most common accrual rate for private sector Written ministerial statement from the Leader of the House of
st
workers on a defined benefit scheme: Commons, Harriet Harman, 31 March 2009.
23
http://www.ifs.org.uk/wps/wp1707.pdf, p12. Accompanying For the 13% figure, see Figure 7.
24
For the 32.3% figure, see Written Ministerial Statement from
Notes: 1. For an average PCPF member aged 54. See Vol 2 for the st
the Leader of the House of Commons, Harriet Harman, 31
full assumptions; 2. See Vol 2 for changes to be introduced to the March 2009.
25
above public sector schemes other than the PCPF. For further details, see Senior Salaries Review Body (January
21
Senior Salaries Review Body (January 2008), Review of 2008), Review of Parliamentary pay, pensions and allowances
Parliamentary pay, pensions and allowances 2007: 2007:
http://www.ome.uk.com/downloads/Review%20of%20Parliame http://www.ome.uk.com/downloads/Review%20of%20Parlia
ntary%20pay%202007%20volume%201.pdf.pdf, p28. mentary%20pay%202007%20volume%201.pdf.pdf, p26.
11
1.6 PERKS 1.7 OVERALL
Finally, MPs’ salaries are supplemented by While it might be true that the government
several perks, some taxable and some not. (Note: used the expenses system as a way to covertly
these perks are distinct from expenses, which are supplement basic pay, it does not therefore follow
listed in the next section, in that they do not exist that MPs’ pay is insufficient. By most measures
solely for the stated purpose of enabling an MP to MPs are well‐paid. We suggest that the
do her job). Of note are: impression otherwise originates in the
comparatively high pay of those in the social
‐ The free service of a parliamentary tax sphere that many MPs occupy, a factor that it
advisor, enabling MPs to avoid navigating the would be perverse for Parliament to take into
complex tax system themselves or paying account if it aims to attract Members of
privately for an accountant. increasingly diverse socio‐economic backgrounds.
‐ Spouse and children can expense 30 round
trips between an MP's constituency and
Westminster.
‐ Redundancy and “winding‐up” payments
upon retirement or election defeat (see
Section 2.3 for details).
‐ Subsidised food and drink available in the
House's restaurants, at a cost to the taxpayer
of £6.1million (2007‐2008).26 (Conservative
leader David Cameron recently promised to
abolish this subsidy if his party wins power in
2010).
‐ Ministers also benefit from the use of the
Government Car Service to take them to and
fro. In 2007‐08, the CGS had 168 drivers and
171 cars at a cost of £14 million in car
services.27
26
An FOI made publicly through WhatDoTheyKnow.com:
http://www.whatdotheyknow.com/request/subsidies_on_mps
_facilities_at_w.
27
Government Car Service annual report 2007‐2008:
http://www.dft.gov.uk/gcda/docs/GCDA%20Annual%20Report
%20and%20Accounts%202007‐08.pdf, all three quoted figures
available, respectively, on p. 21, p. 171 and p. 36.
12
2 HOW EXPENSES WORK
Few people have a clear grasp of the Member. MPs might, however, consult it
administrative system operating within the House as issues arise).
of Commons. Both MPs and newspaper articles o Induction: optional organized meetings
frequently refer to the vague “House/Commons after a General Election and optional one‐
authorities” and the “Fees Office,” the latter of on‐one meetings.
which no longer exists (it was absorbed into a new o Supplementary written materials on
body called the “Operations Directorate” in particular areas of concern.
2001).28 Many MPs are also in the dark about what ‐ Practice notes: written by the Committee on
regulatory, advisory, and administrative bodies Members' Allowances.
contribute to the rules and guidelines governing ‐ Other MPs, particularly senior MPs who have
their expenses. been in the House a long time and “know the
This section will therefore briefly outline the ropes.”
situation that MPs encounter upon entry to the ‐ The Party or Whips: central party authorities,
House of Commons and then explain, in some induction meetings or conversations with the
detail, the network of committees and Whips might give new MPs to know what
administrative bodies operating behind the scenes. constitutes appropriate use of their expenses.
Finally, for reference, it will briefly enumerate the
type and amount of MPs' currently claimable They are also face conflicting pressures:
expenses. ‐ Public pressure to appear virtuous under the
scrutiny of constituents and newspapers.
2.1 THE NEW MP Some MPs were aware that information
MPs have several sources of information when it would come out and some were not, but this
comes to using their expenses: pressure seems likely to be particularly strong
‐ the Operations Directorate (incorporates in marginal constituencies, where small
what was formerly called the “Fees Office”) numbers of votes count.
o Expenses Advice Team (EAT): an advice ‐ Peer pressure to do what others are doing
phone line for Members. (not to be outright fraudulent or a “goody‐
o The Green Book, written by the two‐shoes”).
Committee on Members’ Allowances with ‐ Political pressure from the Party to make
occasional minor alterations by the sure its image is not tarnished.
Members' Estimate Committee and the ‐ Personal moral pressure to do what they
Committee on Members' Allowances (the think is right.
Green Book's length, however, makes it ‐ Pressure to obey the rules for fear of
unlikely reading material for a busy, new sanction, e.g., temporary suspension from
Parliament
‐ Time pressure to instantly get on top of
casework, join committees, examine
28
Examples of “House Authorities” or “Commons Authorities” legislation, etc. This time pressure is
use: Harriet Harman –
particularly exacerbated after a General
http://www.publications.parliament.uk/pa/cm200809/cmhans
rd/cm090128/text/90128w0009.htm; ePolitix: Election by the slowness of House
http://www.epolitix.com/latestnews/article‐ administration, e.g., it can take months for an
detail/newsarticle/commons‐pressured‐on‐union‐recognition/; MP to gain access to an office and a phone in
David Amess MP –
the Commons and for computer equipment
http://www.publications.parliament.uk/pa/cm200809/cmhans
rd/cm090128/text/90128w0009.htm; The Guardian: to arrive.
http://www.guardian.co.uk/politics/blog/2009/may/08/mps‐ In a 2005 meeting of the Administration
expenses‐leak‐police‐investigation. Examples of incorrect Committee, Grant Shapps MP complained
“Fees Office” use: The Scotsman ‐
particularly about the backlog of waiting required
http://news.scotsman.com/politiciansexpenses/Commons‐
Fees‐Office‐staff‐.5519795.jp; to give new MPs offices after the Election. His
Telegraph – comments give an interesting snapshot of the
http://www.telegraph.co.uk/news/newstopics/mps‐ parliamentary culture into which new MPs are
expenses/5340392/MPs‐expenses‐secretive‐fees‐office‐
inducted:
exposed.html; The Guardian –
http://www.guardian.co.uk/commentisfree/2009/may/15/co “[MPs’ refusal to leave comfortable
mmons‐fees‐office‐mps‐expenses; the BBC – offices] is all synonymous with the
http://news.bbc.co.uk/1/hi/uk_politics/8104383.stm#duncan_ wrong culture here. It is absolutely
alan.
13
ridiculous that we should have to wait administration, to introduce different bodies as it
for six to eight weeks for offices. I think saw fit. Instead of systematically dividing up
that about a fortnight is reasonable. expenses‐related functions, the Commission
When people have lost, they should created and disbanded committees and
move out; when they have been bureaucracies on an ad hoc basis. It is particularly
downgraded in their jobs, they should notable that eleven of the seventeen relevant
move. All this would never ever happen sixteen bodies were created in the last fifteen
in a business. The only reason why it years, with five of them created since 2000 alone
happens is because there are no (see Section 2.2.iv).
financial implications for which anyone One salient priority in all reforms has always
is accountable. It is as simple as that. It been to maintain the sovereignty of Parliament
is completely the wrong culture.”29 while taking direct control over MPs' pay and
expenses away from the House. Bills relating to
2.2 HOUSE OF COMMONS pay and expenses therefore usually emerge from a
collaboration between the Commons Commission
ADMINISTRATION
and the Government, to be debated and voted
upon by the House.
2.2.i Necessary Functions
This has often resulted in wholesale adoption
There are, loosely, eight necessary functions of the
of policies recommended by various committees
expenses system:
or quasi‐independent bodies, but in some cases, it
‐ Establishing the principles that should inform
has enabled the House to cherry‐pick only
an MP's conduct.
favourable recommendations and to discard
‐ Establishing the rules that determine what
others, e.g., the Senior Salaries Review Body
use is and is not allowable.
complained of the Commons “cherry‐picking” its
‐ Passing on the above information and
proposals in its recent evidence to the Committee
expectations to MPs.
on Standards in Public Life.30
‐ Administering the expenses themselves and
refusing incorrect claims.
2.2.iii A FLOW‐CHART: Visualising
‐ Auditing receipts and claims to make sure
Parliamentary Administration
they comply with the rules and principles.
Figure 9 (page 15) represents an attempt to
‐ Investigating complaints or dubious claims,
visualise the administrative bodies that deal with
judging whether they comply and, if not,
MPs' expenses.
determining whether the MP's actions were
negligent or devious.
‐ Deciding upon and imposing some form of
sanction for those who have not complied.
‐ Publicising the entirety of this process and all
related documents and records, including
letting the public know how they can lodge
complaints and access information.
These functions are not, however, simply divided
among the different parliamentary bodies. Instead,
a range of Members' committees, bureaucracies,
and appointed committees share in numerous
parts of these functions.
2.2.ii The Proliferation of Committees
The proliferation of committees concerned
with expenses and Commons administration
coincided, perhaps unsurprisingly, with the gradual
introduction and growing value and complication
of different types of expenses (see section 2.3 for
the dates when different expenses were
introduced).
It fell to the House of Commons Commission,
as the legislative sub‐body in charge of Commons
29
Administration Committee First Report of the
30
Session 2005‐06: SSRB evidence: http://www.public‐
http://www.publications.parliament.uk/pa/cm200506 standards.gov.uk/Library/MP_Expenses_E680_Senior
/cmselect/cmadmin/777/777.pdf, p28. _Salaries_Review_Body.pdf, p2.
14
Figure 9: Visualisation of House of Commons and Expenses Administration31
Notes: bills regarding the expenses system in fact come from discussions between the MEC and the government, not the Commission as
shown. Since the Commission and the MEC have the same membership, however, the arrows shown have been simplified. House of
Commons administration and the administration of expenses take place in separate systems. The blue‐highlighted area on the flow‐chart
shows Commons committees relating to the House’s administration. For more detail on House of Commons Administration, including the
official “Organogram” of its internal bodies, see Appendix A.
31
Compiled from communication with officials and numerous committee and organisation websites given as sources for Figure 11.
15
‐ There is nothing in the Act to define how IPSA
SOME CONCLUSIONS: will relate to most of the other committees
and administrations. Instead, IPSA is merely
UNCLEAR REPORTING RELATIONSHIPS AND required to “consult” at least nine separate
DECISION‐MAKING RIGHTS bodies or officials when reviewing the rules,
‐ It is impossible to create a simple flow‐chart whereupon the Speaker takes control of
demonstrating clear relationships between laying its proposals before the House.33
the various committees; instead, many of ‐ The Committee on Standards and Privileges
them seem to “float” alongside one another has the right to “accept, modify or reject” any
in undetermined relationships, occasionally of the IPSA’s recommendations in relation to
sharing information. disciplinary action.
‐ Incremental role adjustments and name‐ ‐ In relation to releasing information, the Bill
changes have added to the sense of is silent other than to say, “The IPSA may
confusion surrounding Commons publish a direction it has given.”34
administration. ‐ The position of the newly created
‐ Ultimately, this means that it is not clear Commissioner for Investigations is similarly
which body is responsible for decisions undetermined in relation to the committees
relating to MPs’ expenses. and to the existing Commissioner for
LACK OF COORDINATION AND INFORMATION‐ Standards, as is the nature of this office's
SHARING attachment to IPSA.
‐ Committees share information on an ad hoc ‐ All details on how IPSA will relate to the
basis. There is no clear system for pooling newly created Commissioner, the Committee
information or preventing overlaps. Instead, on Standards in Public Life, the Director of
anybody might or might not draw upon the Public Prosecutions, the police, or anyone
published reports of another when else, are left up to IPSA to decide in
deliberating upon an issue. Furthermore, consultation with the CSPL. The
members of various bodies do not always Commissioner cannot, therefore, be said to
know that their colleagues have produced be independent.35
and published information related to their ‐ The Commissioner is not charged to report
own inquiries.32 or publish her findings in cases where the
‐ The only instance in which a committee Member has simply paid back the incorrectly
might draw upon all the available information claimed expense, nor is she required to
and reports is during a detailed review of a publish details of dismissed complaints.36
particular issue, e.g., the inquiry in MPs'
expenses currently being undertaken by the 2.2.iv Administrative Functions: A more
Sir Christopher Kelly and the Committee on detailed look37
Standards in Public Life (CSPL). In such cases, Figure 11, below, provides more detail on the
however, committees themselves do not various bodies that appear in the above flow‐
formally give evidence, although individual chart (Figure 10)
members of different committees might
volunteer their personal view based on
experience.
FURTHER UNNECESSARY PROLIFERATION: IPSA AND
THE INDEPENDENT COMMISSIONER
‐ Similarly, the Independent Parliament
Standards Authority (IPSA) and its attached
Commissioner for Parliamentary
33
Parliamentary Standards Bill:
Investigations, recently created by the http://www.parliament.uk/documents/upload/parlystan‐
Parliamentary Standards Act (July 2009), do bill.pdf, p2.
34
not have clear relationships to any of the Parliamentary Standards Bill:
existing bodies, nor requirements to report http://www.parliament.uk/documents/upload/parlystan‐
bill.pdf, p6.
all of their activities. 35
Parliamentary Standards Bill:
http://www.parliament.uk/documents/upload/parlystan‐
bill.pdf, p6.
32 36
For an example, see: Administration Committee Post‐ Parliamentary Standards Bill:
Election Services Report, 2005‐2006, Kevan Jones MP’s http://www.parliament.uk/documents/upload/parlystan‐
request for a copy of the annual Senior Salaries Review Body bill.pdf, p5.
37
report, which is published online: Information compiled from the parliamentary websites of
http://www.publications.parliament.uk/pa/cm200506/cmsel the various bodies mentioned and from communications with
ect/cmadmin/777/777.pdf, p 42. Parliamentary and government officials.
16
Figure 10: Detailed information on Administrative Bodies
Note: This is not an exhaustive list of information about the relevant bodies. It also does not lay out, in detail,
the internal workings of House administration (readers interested in the House’s running can view the official
“organogram” of its structure in Appendix A). Instead, this table is primarily focused on different bodies’
functions and publications as they relate to the expenses system.
38
House of Commons Commission website: http://www.parliament.uk/about_commons/house_of_commons_commission_.cfm
39
Finance and Services Committee website:
http://www.parliament.uk/parliamentary_committees/finance_and_services_committee.cfm
40
Administration Committee website: http://www.parliament.uk/parliamentary_committees/admin.cfm. This should not be
confused with the pre‐2005 Administration Committee website, when the AC was one of four domestic Committees of the
House. In 2005 these four committees were merged and their responsibilities taken over by what present Administration
Committee. The pre‐2005 AC website can be found here:
http://www.parliament.uk/parliamentary_committees/administration_committee.cfm
41
For deliberations on breastfeeding in the Commons, see:
http://www.publications.parliament.uk/pa/cm200001/cmselect/cmadmin/478/47803.htm#1b,
http://www.publications.parliament.uk/pa/cm200001/cmselect/cmadmin/478/47803.htm#1a
17
42
Administration Estimate Audit Committee website:
http://www.parliament.uk/about_commons/house_of_commons_commission_/audit_committee.cfm
43
Members Estimate Committee website: http://www.parliament.uk/parliamentary_committees/mec.cfm
44
Advisory Panel on Members’ Allowances website: http://www.parliament.uk/parliamentary_committees/apma.cfm.
45
Committee on Members’ Allowances website: http://www.parliament.uk/parliamentary_committees/cma.cfm.
46
Members Estimate Audit Committee website: http://www.parliament.uk/parliamentary_committees/meac.cfm.
18
47
Standards and Privileges Committee website:
http://www.parliament.uk/parliamentary_committees/standards_and_privileges.cfm.
48
Commissioner for Standards website: http://www.parliament.uk/about_commons/pcfs.cfm and Fact Sheet, 2007:
http://www.parliament.uk/commons/lib/research/briefings/snpc‐04507.pdf.
49
Committee on Standards in Public Life website: http://www.public‐standards.gov.uk/.
50
Senior Salaries Review Body website: http://www.ome.uk.com/review.cfm?body=4.
19
51
Parliament website on departments of the House of Commons:
http://www.parliament.uk/about_commons/commonshro/departments.cfm#finance.
52
Monthly claims and calls figures from minutes of Administration Committee meeting, January 2009:
http://www.parliament.uk/documents/upload/AdminPI02‐130109.pdf, p3.
53
http://www.publications.parliament.uk/pa/cm200304/cmhansrd/vo040518/text/40518w08.htm
54
For the Auditor General’s 2008‐2009 report, see the Members Estimate Accounts 2008‐2009:
http://www.publications.parliament.uk/pa/cm200809/cmselect/cmcomm/955/955.pdf, p21‐24.
20
55
Government Actuary website: http://www.gad.gov.uk/About_GAD/.
21
2.3 THE ALLOWANCES: A BRIEF LOOK
Below is a brief table of the different expenses, their date of introduction, amount, restrictions and the
evidence required to claim them. More detailed information is readily available on the House of Commons
website and has been widely circulated. It is provided here for reference.56
Figure 11: List of expenses
Expense and purpose When Maximum amount and specific Evidence required to
introduced uses/restrictions claim
PAAE (i.e., the 1971 £24,222 can be claimed towards rent, Annual statement of
Accommodation mortgage interest, hotel costs, council interest, copy of lease
Allowance, formerly the tax, insurance, utility bills, service agreement, hotel bill,
“ACA”). Because MPs charges. invoices or annual
have to work both in statement for monthly
London and their costs.
constituency, they can
expense the cost of living
in the secondary location.
Subsistence Pay: for food 2009 £25 per night spent away from a No record required.
and non‐alcoholic drink. Member's “main home.”
Administrative and Office 1969 £22,393 on office rent, equipment, A copy of lease
Expenditure (AOE). facilities and services for MPs and their agreement, receipts for
Formerly the Incidental staff. all services and
Expenses Provision (IEP). equipment, copy of
agreement if renting
office from political party,
contracts for services,
receipts for petty cash of
over £25.
Staffing Allowance: MPs 1981 £103,812 on staff salaries, brought‐in A copy of the contract
cannot employ children services, redundancy costs and and job description for
(since 2008) but can settlements made at tribunal hearings each staff‐member, a
employ other relatives form for changes in
salary, invoices for
brought‐in services.
Travel Expenditure: MPs 1980 No limit. Mileage – Car: 40p per mile A signed travel card
and their staff can for the first 40,000miles, 25p per mile acknowledgement; no
expense travel within thereafter; Motorbike: 24p per mile; record required for
their constituency and Bike: 20p per mile. mileage.
between their
constituency and
Westminster.
56
Information compiled from: House of Commons Factsheet M5:
http://www.parliament.uk/parliamentary_publications_and_archives/factsheets.cfm; House of Commons Green Book 2009:
http://www.parliament.uk/documents/upload/GreenBook.pdf; MEC Review of Allowances, Third Report of the Session 2007‐08:
http://www.publications.parliament.uk/pa/cm200708/cmselect/cmmemest/578/578i.pdf; and the Concordance of Resolutions
released by the MEC, January 2005: http://www.publications.parliament.uk/pa/cm200405/cmselect/cmmemest/240/240ii.pdf .
22
23
3 WHAT WORKS, WHAT DOESN’T
24
PAAE (ACCOMMODATION ALLOWANCE) SUBSISTENCE
Mortgage interest claims abuse: Reimbursing Unnecessary: It is unclear why MPs should
MPs who choose to buy property with taxpayers' require an extra £25 for food just because they are
money results in the complex problem of what to in a different location. MPs already have access to
do with the asset thereby obtained. Presently, subsidised food in the House of Commons
MPs are allowed to keep the asset as if they had restaurants (at a cost of £6.1million to the
bought it themselves when, in fact, it belongs – at taxpayer). While there might be reason for MPs
least in part – to the taxpayer. This is materially who opt to stay in hotels while in London to be
unfair, administratively complicated to resolve and able to buy subsidised food, there is no need for
gives the impression of profiteering on the part of this to extend to alcohol as well.
MPs.
House maintenance and furnishings abuse: RECOMMENDATION: Abolish the subsistence
The most problematic use of the Accommodation allowance; abolish the House of Common
Allowance in this respect has been for the catering subsidy for all alcoholic drinks and
maintenance of gardens, the purchase of luxurious reduce the Refreshment Department’s subsidy
furnishings and the lavish redecoration of houses. by half.
Redecoration claims, in particular, have been
AOE (OFFICE COSTS)
abused through the practice of “flipping” main Misuse: Receipts are not sufficiently checked
home designation (redecorating one's second to ensure that MPs are not claiming for expressly
home with taxpayer funds, then switching its forbidden services such as PR.
designation to a main home and selling it off for Insufficient registration: MPs do not, as a
profit). Moreover, although MPs have been matter of course, list offices rented from political
required to submit receipts for these items, the parties on the Register of Interests nor do they
Operations Directorate (Fees Office) has taken far regularly publish office rental agreements. So it is
too lenient a stance in approving almost any kind impossible to know if an MP is receiving financial
of cost associated with a home, and not just those help from her party in the course of her
necessary to the performance of parliamentary constituency duties.
duties.
Hotel bill misuse: MPs have extended this use RECOMMENDATION: Publish all claims and
of the allowance to include items beyond mere receipts online as they occur to allow the public
overnight accommodation, such as minibar use to scrutinise claims over and above the Fees
and the purchase of pornography. Despite seeing Office. Require office rental registration on the
receipts for such items, the Operations Directorate Register of Interests, even if the rental is not at
did not refuse such claims. below‐market rates.
RECOMMENDATION: Give MPs the option of
STAFFING ALLOWANCE
living free in government‐owned Olympic
Staff activities: MPs are not obliged to submit
Village housing, with all maintenance and
any evidence demonstrating that their employed
utilities included, or of receiving £1200 per
staff a) does any of the work for which they are
month for rent and disallowing reimbursement
employed, b) does not spend a significant amount
for any housing‐related costs (e.g., council tax).
of their time on party political matters while
Ban expensing mortgage interest.
being funded by the taxpayer. This has been
exacerbated by the ability to employ family
members who might not actually do any work for
the claimed salary, might be less competent than
an applicant selected through other means, and
might cause managerial problems if in a position of
authority.
25
RECOMMENDATION: Ban the employment of RECOMMENDATION: Abolish the
family members for salary and require staff to Communications Allowance. Instead, fund
list all past (as well as present) political necessary communications, as before, through
affiliation on the Register of Staff Interests. the Office Costs Allowance and require
Ensure more reliable publication of staff publication of all non‐personal material sent to
contracts by make Parliament their official constituents.
employer, rather than the individual MP.
Finally, require MPs to advertise all jobs and
HOUSE STATIONERY AND POSTAGE
internships for their office on a public database Personal or political use: Again, there is no
(such as W4MP) to ensure meritocratic access. evidence required to determine how an MP has
been using House of Commons stationery,
TRAVEL ALLOWANCE meaning that it could be used for political
Within‐constituency travel: MPs should purposes or personal gain.
itemise all journeys (to ensure they are for
parliamentary, not personal, purposes) and supply RECOMMENDATION: All letters written using
receipts in order to claim them on expenses. House of Commons stationery should be
Mileage unaccountability: No receipts are published, unless there is significant reason not
required to determine that the mileage claimed to under the Freedom of Information Act.
has genuinely been driven.
Personal or political use: There is no evidence
LONDON COSTS ALLOWANCE
required to support the claim that any travel costs
In itself, the London Allowance is not open to
have been incurred during parliamentary business. abuse, but it was raised by over 250% last year,
In short, there is nothing to stop MPs claiming for seemingly without justification (from £2,916 to
almost every journey they make (except those £7,500).69
abroad), whether or not it has anything to do with
their job. RECOMMENDATION: The London Allowance
should be taken down to £4600 and up‐rated
RECOMMENDATION: Abolish funding for annually in accordance with government
internal constituency travel and require MPs to figures available for the regional RPI for
supply receipts, itemise travel, and adhere to a London. After this adjustment, its use should
Fees Office‐stated budget for the year. also be expanded to include all those MPs with
constituencies in Greater London. This would
COMMUNICATIONS ALLOWANCE disqualify these MPs from use of the
Political use: Since MPs are not required to Accommodation Allowance.
submit or publish the communications for which
they use this allowance, it is wide open to political
RESETTLEMENT GRANT
abuse such as the postage of campaign materials
Principle: It is thoroughly inappropriate for MPs
and one‐sided newsletters.
to effectively receive a redundancy payment for
Incumbency: Even if the allowance is not
losing their seat. Incoming MPs campaign to enter
directly abused, it gives the incumbent MP funds
Parliament for one term at a time and should have
specifically for self‐promotion and therefore
no assumptions about their re‐election; they
disadvantages challengers to the seat who do not
cannot, therefore, be said to be made redundant
have a £10,400 expense account upon which to
after losing their seat. In addition, outgoing MPs
draw for publicity.
69
The most recent government figures available
(http://www.statistics.gov.uk/articles/economic_trends/ET615W
ingfield.pdf, p.40) that compare London prices with the rest of
the UK suggest that living costs in London are 7.1% higher than
the UK average. Taken as a percentage of MPs’ salaries, this
equates to about £4,600.
26
might well have lost their seat due to improper We will therefore examine the way in which
behaviour or incompetence and are, in such information about MPs’ outside interests should
scenarios, being rewarded for their misconduct. be published if they are to be allowed to keep their
WINDING‐UP ALLOWANCE second jobs.
Personal use: There is absolutely no evidence
required to determine that outgoing MPs have 3.2.i WHAT WORKS
taken the time to hand over important casework ‐ MPs and their staff are already obliged to list
and tie up loose ends. Nor is there any statutory organizations and individuals from whom
they have received payments on the Register
obligation upon them to do. In effect, this is a
of Interests kept by the Commissioner for
supplementary redundancy pay‐off. Standards.
RECOMMENDATION: Abolish the Resettlement 3.2.ii WHAT DOESN’T
Grant and the Winding‐Up Alliance. ‐ There is no compulsory register of lobbyists
and therefore no clear way for the public to
know if an organisation from which an MP
benefits financially is attempting to lobby
3.2 OUTSIDE INTERESTS: Lobbyists in the Parliament on any issue. This means that the
Woodwork public cannot be sure of an MP’s motives
when she amends and votes upon legislation.
‐ There is no significant sanction for failing to
The question of MPs’ salaries and expenses
list an interest.
raises the issue of their supplementary ‐ The format of the Register of Interests, for
remuneration from non‐parliamentary both MPs and their staff, is far from ideal,
employment. Should MPs be allowed to hold being a collated .pdf file rather than a
second or supplementary jobs during their term of database in which remuneration can be easily
office? If so, how can we ensure that those who summed and compared.
‐ The Register is not linked to from the
employ them are not in fact merely paying them to
parliamentary directory of MPs.
implement favourable legislative changes (i.e.,
corruptly lobbying)?
RECOMMENDATION: Establish a compulsory,
We do not have a singular institutional view on
public Lobbyists’ Register for all those who
whether MPs should be obliged to give up their
wish to lobby elected representatives. Publish
second jobs. Arguments on one side include: MPs
this and the current Register of Interests in a
cannot be effective if they are working a second
searchable format (e.g., Excel, or supply a
job; MPs are open to being illegitimately lobbied if
downloadable .csv file) and place links to each
they are allowed to accept money for non‐
Member’s entry in the parliament.uk directory.
parliamentary activities. On the other side,
Moreover, make failing to declare an interest
however, one can legitimately argue that: MPs
a serious offence, incurring potential
without second jobs will exist in more of an
suspension from Parliament, forced resignation
artificial public‐service bubble, narrowing the range
from any government or committee post and,
of their experiences; banning MPs from holding
in many cases, a forced by‐election or
outside interests will not stop, but simply push
debarring from office.
corrupt lobbying further behind the scenes.
Instead of focusing on whether outside
interests should be allowed in any form, we will
instead put forwards suggestions on what factors in
the current system enable corrupt lobbying and
how, if second jobs are to be retained, the rules
could minimise corruption.
The crucial focus of a good system should be
publication, so as to enable citizens to inform
themselves of an MP’s possible conflicts of interest.
27
3.3 ADMINSTRATION: The Buck Stops... of who is responsible for what because of
Where? committee name changes and incremental
tweaking with the rules.
3.3.i WHAT WORKS This also means that no official or body feels its
‐ With almost every committee producing an authority to be sufficiently robust as to impose
annual report and many bodies providing significant sanctions on wrongdoers. Coupled with
their overall costs online, there has been a
the current lack of transparency, this means that
proliferation of information automatically
available to the public each year. Moreover, there is little deterrence for bad conduct.
the format and level of detail of this RECOMMENDATION: Abolish most of the
information has improved somewhat since
quango’s and committees involved in the rule‐
around 2000, tending to move from brief
summaries to more organized and detailed making process and imbue those remaining
.pdf files. with real authority and responsibility. Publicise
‐ Committees are slowly improving the the internal workings of the system so that the
thoroughness with which they publish public knows where credit and blame are due.
information, e.g., despite, censoring some of
its evidence, the Committee on Standards in
Public Life’s current review into MPs' UNUSEABLE INFORMATION
expenses gives the public fairly There is no standard procedure or format for
comprehensive access to the oral and written the release of information. Committee documents
evidence it received, as well as holding its vary wildly in their level of detail (Minutes often
hearings in public.70 reveal only that, “The committee deliberated”).
‐ The Freedom of Information Act has given It is very difficult to quickly compare
citizens an avenue through which to track
information from different bodies and even harder
down and obtain information. It has also
introduced parliamentary bodies to the to search and manipulate data, e.g., in order to
notion that information about their internal answer a simple question, such as the total
workings might be requested, putting amount claimed under the Accommodation
pressure on them to compile the information Allowance last year, it would take hours of reading
more efficiently and to behave more expense claims, compiling numbers and adding
responsibly. them up.
When requesting unpublished information
3.3.ii WHAT DOESN’T
Due to the uncontrolled growth of overlapping under an FOI, it is necessary for interested parties
committees and bureaucracies, several issues have to spend some time locating the body that might
arisen: hold the information, and then guessing as to the
NO ACCOUNTABILITY format in which it is held so that it can be
When responsibility is dispersed and requested as precisely and effectively as possible.
disorganised, it is easy to hide behind and blame Many citizens will simply be deterred by the effort
“the system.” For example, because few people required.
have a full grasp of who makes the rules and how,
MPs feel licensed to blame the Operations RECOMMENDATION: Establish a single MPs’
Directorate (Fees Office) for approving dodgy expenses bank account to automatically record
claims and are not held to account as individuals. transactions. Publish the bank statement and
It is not clear who is to blame for bad rule‐ all records and receipts. Alongside this,
making or insufficient auditing, because no one parliamentary IT services should provide easy‐
body or individual holds the responsibility for to‐use databases for the entry and release of
these functions. It is particularly hard to keep track information.
70
The Committee has, thus far, refused to publish
Heather Brooke’s evidence to the Kelly Inquiry unless
it is redacted. It is nonetheless available on her
website: http://www.yrtk.org/2009/a‐funny‐thing‐
happened‐to‐my‐parliamentary‐evidence/.
28
Figure 12: Expenses administration ‐ the case for simplification71
WHY SIMPLIFY THE EXPENSES SYSTEM?
Figures show that, as the expenses system has grown in scope and complication, workload and running costs have
risen. The increasing number of enquiries to the Expenses Advice Team does not seem to have resulted in more
appropriate claims. Indeed, many Members claimed to have been confused about the rules once their receipts were
published by The Telegraph.
Number of calls to the Expenses Advice Team Total number of claims made
(part of the Operations Directorate, or “Fees Office”)
Moreover, information obtained via a Freedom of Information Request by the Sunlight Centre shows that, despite
the Fees Office’s budget rising for every one of the last four years, it has not been within budget once in the last
three:
These figures present a compelling case for Total Total % ‐/+
having as few allowances, as little administrative budget actual total
confusion and as little complication in the rules as (£000) (£000) budget
possible. Expenses are necessarily intricate and
complex because MPs’ circumstances vary, but it figure not ‐
is always a trade‐off between keeping costs 2005‐06 supplied 2,107
down with simplicity, and paying more to cater 2006‐07 1,531 2,117 38.27
to every possible eventuality. 2007‐08 2,148 2,382 10.89
2008‐09 2,333 3,055 30.94
LACK OF INTELLIGIBILITY
It can sometimes be very difficult for the public RECOMMENDATION: By reducing the number
or MPs to find a definitive interpretation of the of bodies involved and making all information
rules. MPs do not generally devote time to reading public, the system proposed in Section 4.2
the seventy‐page Green Book and to noting would encourage MPs to interpret the rules in
changes between editions. Moreover, the complex a way the public would find sensible, rather
overlapping functions of administrative bodies than in a way that is advantageous.
might not be self‐consistent and can change rules
or guidelines often, making it hard to keep track.
This lack of definition also makes it hard for
members of the public to inform themselves and NO PUBLICITY
debate the issues. There are no easy avenues for officials to
explain to the public how the administrative
system works, nor how to access information. This
71
For both graphs in Figure 13, see Parliamentary Accounts means that many members of the public do not
2008‐2009:
http://www.publications.parliament.uk/pa/cm200809/cmselec know how to properly lodge complaints (or even
t/cmcomm/955/955.pdf, p.9 and p.8 respectively. Table of Fees that such an action is possible).
Office spending obtained via FOI request.
29
30
4 RECOMMENDATIONS
1. SIMPLIFY AND SCALE BACK EXPENSES
a. Provide housing for non‐London MPs in the Olympic Village
b. Abolish or cut all supplementary pay outside the Cabinet
2. HOLD PARLIAMENT ACCOUNTABLE BY ABOLISHING REDUNDANT BODIES
a. Cut expenses‐related committees and quango’s by over 60%
b. Make the remaining bodies accountable and efficient
3. ESTBALISH A SINGLE MPs' BANK ACCOUNT, A PUBLIC DATABASE AND FULL AUDIT
a. Give MPs a parliamentary debit card and a public Commons bank statement for
expenses
b. Bring Parliament up to date: Publish expenses in a searchable database
c. Make annual full audit a statutory requirement
4. PUBLISH MORE AND OPEN UP ACCESS TO INFORMATION
a. Make it a statutory requirement to publish every receipt, every refused claim
and all formal Fees Office correspondence
b. Hold open quarterly press conferences with the Commissioner for Standards
c. Establish a compulsory Lobbyists’ Register so that the public can compare
lobbyists’ activities with that of MPs listed on the Register of Interests
5. IMPOSE MEANINGFUL PENALTIES FOR BREAKING THE RULES
a. Let citizens trigger a recall by‐election for erring MPs
b. Have expense‐claiming MPs sign a legally binding contract to abide by the rules
c. Formally enable the ejection and debarment of MPs who wilfully deceive
Overall we calculate that these measures will, over the ‐ Cutting down the government car service. Savings:
course of current MPs’ careers, generate at least £6,000,000
£75,837,445 in savings. This includes: ‐ Halving the catering department subsidy. Savings:
‐ Switching parliamentary pension scheme from defined £3,050,000
benefit to defined contribution. Savings: £8,618,80 ‐ This has yet to include savings made by stopping
‐ Scrapping all supplementary salaries except those of abuse and paring down the Accommodation
the Cabinet and Leader of Opposition and cutting junior Allowance, introducing individual MP travel budgets
ministerial pay to £10,000. Savings: £3,528,951 and cutting out the roles of various unnecessary
‐ Scrapping the resettlement grant. Savings: parliamentary bodies.
£31,379,12772 ‐ It should be offset against the cost of setting up an
‐ Scrapping the winding‐up grant. Savings: £20,919,41873 expenses database (estimated to be between £70,000
‐ Scrapping the communications allowance. Savings: and £150,000 by Tom Steinberg of mysociety.org),
£1,300,000. implementing a full annual audit and scanning all
receipts.74
72
Calculated by averaging the maximum and minimum resettlement grant
74
permitted, using current salary levels. Steinberg’s estimate is in the transcript of his CSPL oral evidence:
73
Calculated using current Staffing Allowance levels, therefore likely to be an http://www.publicstandards.gov.uk/Library/Committee_on_Standards_in_
under‐estimation, since the Staffing Allowance amount tends to rise over time. Public_Life_1_30_06_09.doc , p.28.
31
4.1 SIMPLIFY AND SCALE BACK EXPENSES
ABOLISH INAPPROPRIATE ALLOWANCES will be fully accessible and equipped
with modern lifts.”76
ABOLISH: Since the government will already own the
‐ The Subsistence Allowance complex, MPs will not have to bear the cost of
‐ The Communications Allowance utilities or maintenance and will avoid the stress
‐ The Resettlement Grant and time spent finding a place to rent or buy. For
‐ The Winding‐Up Grant MPs new to London, this will relieve them of a
‐ The Parliamentary tax advisor significant burden.
‐ Pay for Whips While having all non‐London MPs in public
‐ All supplementary pay except for housing would be convenient, however, there
Cabinet ministers and junior ministers, should nonetheless be a provision to allow those
whose extra pay should be cut to who strongly want to live elsewhere to do so.
£10,000 Given the abuses resulting from allowing MPs to
‐ Junior ministerial use of the expense mortgage interest, we recommend
Government Car Service unless there abolishing this provision entirely. Instead, MPs
can be shown to be a significant should be able to choose between:
security reason ‐ Living in the Olympic Village with all costs
‐ The House of Commons catering paid (e.g., maintenance, utilities).
subsidy for alcohol (and slash ‐ Expensing up to £1200 per month in rent
Commons catering subsidy by half) without any extras paid (no utilities or
‐ The parliamentary tax advisor. maintenance).
‐ Expensing up to £1200 per month in hotel
bills – but only for accommodation, not for
In addition to abolishing these allowances,75 we extras such as room service.
propose the following changes to those allowances This range of options would allow for a
remaining: reasonable mixture of choice, reducing the
capacity for abuse and administrative simplicity.
THE ACCOMMODATION ALLOWANCE
(renamed from the “PAAE” or the “ACA”) Figure 13: Artist's impression of the Olympic Village
‐ HOUSE MPs IN THE OLYMPIC VILLAGE
Since the government is already investing in
building the Olympic Village, it seems sensible to
cut down on administrative costs by encouraging
MPs to use some of the resulting public housing
as their parliamentary accommodation. The
Olympic Village is set to be a modern, secure
complex of apartments with shops, transport links,
and medical and leisure facilities nearby. The
official Olympic website describes:
“The plan retains London's tradition of
building homes around communal
squares and courtyards, with water
features accentuating the closeness of THE FURNITURE ALLOWANCE
the River Lea. Athletes will have an (separated from the Accommodation Allowance)
inspirational view over the Park. Every ‐ GIVE MPs A ONE‐OFF ALLOWANCE
apartment will provide comfortable Moving into a new apartment does incur costs
accommodation and state‐of‐the‐art even without having to buy a new home. Instead
communications facilities, including of being able to claim annually for new furnishings,
internet access and wireless however, MPs should simply receive a one‐off
networking. All the apartment blocks allowance when they are elected. This should be
set at £3000 and be automatically adjusted by
75
There should be one exception to the abolition of the pegging it to the RPI for furniture.
Winding‐Up Grant: MPs who have opted to lease a flat in London
for accommodation and who are defeated in a General Election
before their lease term is over should receive a lump sum equal
76
to the amount necessary to pay the lease until it expires, as London 2012 Olympic website:
stated on the published lease contract. For this reason, leases http://www.london2012.com/plans/olympic‐park/games‐
should be limited to a maximum length of one year. time/the‐olympic‐village.php.
32
STAFFING ALLOWANCE ‐ SET AN ANNUAL BUDGET FOR TRAVEL
‐ BAN EMPLOYMENT OF FAMILY Currently, there is no limit to the amount MPs
While many family members work hard for can claim for travel. This should change and
Members, the abuse of this leniency has shown instead the default travel arrangements should be
that a prohibition is necessary. A ban on for MPs to receive an annual budget for
politicians’ employment of relatives is already Westminster‐constituency journeys, published by
standard practice in the US and Germany and the Fees Office, equal to the cost of standard‐
should become so here as well. 77 class return ticket (by train or, where necessary,
‐ PUT ALL STAFF ON A CENTRAL CONTRACT by plane) to their constituency for 52 weeks of
One of the effective changes to emerge from the year.
the pre‐summer reforms was to transfer staff Expensing mileage should be permitted within
contracts to list the House of Commons as this budget, subject to itemising journeys and
employer. Even informal work, such as that done providing receipts. Staff can continue to be able
by unpaid interns, can be employed on a contract to expense necessary travel by public transport
(albeit a separate one from normal staff). provided they submit receipts and log a reason
Members should, however, retain responsibility for the journey, both to be published through an
for choosing whom they hire. accessible expenses database.
‐ LIST ALL PAST AND PRESENT POLITICAL Within‐constituency travel can continue to be
AFFILIATIONS AND CAMPAIGNING expensed on an ad hoc basis but should never
ACTIVITIES include flights. If it is unusually high, it will be
Staff should not only have to declare any noticeable on any published expenses database.
present political employment by a party, but ‐ BAN INTERNATIONAL TRAVEL
should be required to list past employment and MPs should not be allowed to expense any
membership of parties. They should also have to international travel in the name of performing
publicly declare whenever they engage in political regular parliamentary duties.
activity, e.g., canvassing votes, and list the date
and political affiliation of the activity on the OFFICE ALLOWANCE
Register of Interests. (renamed from the “AOE” and the “IEP”)
‐ INCLUDE CONSTITUENCY STAFF ‐ PUBLICATION
Constituency staff should be held to the same The current rules on the Office Costs Allowance
reporting standards as parliamentary pass‐holders, are reasonable and would be enforceable if
particularly since it is often in the constituency backed up with proper audit trails, record‐
that party political activities, such as campaigning, keeping, and running publication of those records.
take place.
‐ AVERTISE ALL JOBS WITH MPs CENTRALLY PENSIONS
While MPs should ultimately retain control ‐ ADOPT THE PRIVATE‐SECTOR NORM
over whom they hire, they should be obliged to MPs should have the integrity to switch their
advertise all posts on a database such as pension scheme to what is now becoming the
W4MP.com so that all members of the public have private‐sector norm – a Defined Contribution
equal access to political opportunities. Scheme instead of a Defined Benefit Scheme.
Under a defined contribution scheme, MPs would
TRAVEL ALLOWANCE only receive their pension in proportion to what
‐ ITEMISE ALL TRAVEL they contribute, as opposed to being guaranteed a
Most people have to list journeys for which generous income tenuously related to their
they claim expense costs. There is no reason MPs contributions, all funded by the taxpayer.
should not have to briefly list the purpose and Given their privileged position and a budget
submit receipts for journeys for which they want deficit of £175bn this year, MPs should lead the
to claim money, both within the constituency and public sector by example in switching over to a
between the constituency and Westminster. fairer pensions scheme.78
These details should be published in an accessible
expenses database. ACRONYMS: Parliament should rename the
allowances to avoid numerous acronyms, enabling
them to be understood and tracked by those who
do not follow parliamentary procedure closely.
77
See point 85 for ban on family employment in US
and Germany:
78
http://www.publications.parliament.uk/pa/cm200708 Budget deficit:
/cmselect/cmmemest/578/57805.htm. http://news.bbc.co.uk/1/hi/uk_politics/8011321.stm.
33
4.2 HOLD PARLIAMENT TO ACCOUNT BY ABOLISHING ADMINISTRATIVE CONFUSION
Replace the administrative structure laid out in Figure 10 with the one laid out below:
Figure 14: Proposal for a reformed administrative structure for MPs’ expenses
34
CONCLUSIONS:
35
demands made by an Act of Parliament to receipt of a £200,000 cheque from a
produce a database in which the required third‐party interest, Geoffrey Robinson
data and evidence could be easily recorded MP received nothing more than an
inconvenient three‐week suspension
and published.
from Parliament.81
o 2006: The Committee recommended that
RIGHT OF APPEAL
no action be taken against John Prescott
‐ This structure also introduces a right of
over his failure to fully declare his
appeal to any complainant and any MP. If interests: He was gifted a stay at a
unhappy with the Commissioner’s verdict, luxurious ranch of an American tycoon
complainants or MPs may appeal to the CSPL, but satisfied the Committee by declaring
which can decide if an appeal is merited and, it once he had been investigated.82
if so, investigate the case. o 2008: Derek Conway MP was investigated
by the Commissioner for Standards in
2008 after improperly employing a
ABOLISH REDUNDANT BODIES second of his sons on parliamentary
This proposed structure would also: allowances. Despite this being the
second offence and the son in question
ABOLISH: simultaneously being at university while
− The Standards and Privileges supposedly working for his father, the
Committee Committee on Standards and Privileges
− The Members’ Estimate Committee decided that any punishment on top of
− The Members’ Estimate Audit that already served by Conway for his
Committee first offence would be
− The Administration Estimate Audit “disproportionate.”83
Committee ‐ It is a bad principle to place responsibility for
− The Finance and Services Committee Members' ethics solely in the hands of other
− The role of the Senior Salaries Members. It is already a principle of our
Review Body in expenses government that the judiciary should be
separate from the legislature; that should
stand for the running of Parliament as well.
WHY ABOLISH THESE BODIES? ‐ In order to keep some element of judgment
by one’s peers, there should be more MPs on
WHY ABOLISH...
the CSPL. Instead of its current makeup, the
The Standards & Privileges Committee:
CSPL should consist of four MPs and five
Although the Standards and Privileges Committee
independent appointees.
has performed some valuable tasks in the past, it
does not make sense to continue to disperse
WHY ABOLISH...
responsibility for parliamentary standards
The Members Estimate Committee: There is
between this committee and the CSPL. Duplication
no reason to put control over bills on MPs'
makes it harder for the public to understand and
expenses and salaries in the hands of a committee
hold the House to account. Given this principle,
chaired by the Speaker, half‐full of ministers and
there are several factors that weigh in favour of
whose members are already occupied with the
abolishing the Standards and Privileges
internal administration of the House itself.
Committee:
‐ The Speaker already has inordinate control
‐ Its track record on punishing misconduct
over the procedures and administration of
among MPs is poor.
the House and, given how hard it is to
o 2001: Despite avoidance and non‐
remove a Speaker (it has been achieved only
cooperation by Keith Vaz MP in the face
twice in 314 years), it is thoroughly
of an investigation by then‐
inappropriate that the position also include
Commissioner Elizabeth Filkin, the
Committee on Standards in Public Life
81
recommended no action be taken The Guardian:
against the MP.80 http://www.guardian.co.uk/uk/2001/nov/26/houseofcommons.
politics3De
o 2001: Despite misleading Filkin about the 82
BBC: http://news.bbc.co.uk/1/hi/uk_politics/5196152.stm.
83
Committee on Standards and Privileges report, 2008‐2009:
http://www.publications.parliament.uk/pa/cm200809/cmselect/
80
BBC: http://news.bbc.co.uk/1/hi/uk_politics/1216410.stm. cmstnprv/207/207.pdf.
36
the chair of the central body of elected o The Members’ Committee on Allowances
officials with control over parliamentary would be responsible for drafting
expenses.84 changes to the expenses system and
‐ The other members (Leader of the House and calculating their cost. This would force
Shadow Leader) similarly have too much the Commons to take responsibility for
vested in the House's reputation to be able to proposed changes, as opposed to
fairly consider the release of information and simply pointing towards the
wide‐scale reform of the expenses system. unaccountable SSRB as the origin of the
changes.85
WHY ABOLISH... NOTE: The recommendation to abolish these
‐ The Members Estimate Audit Committee committees does not imply that all of their work
(MEAC): and members are worthless. Many produce and
o It does not make sense to artificially
publish valuable information and are committed to
separate an analysis of the audit
function from the investigatory the House's effective and ethical functioning. It
functions of the expenses system. must be a priority, however, to make the expenses
o Instead, audit should be part of the and administration system more understandable
regular operation of the expenses to the public, so that the correct people can be
system and MPs should not be the ones held to account.
responsible for receiving audit reports
of their own spending. STRENGTHEN THE ROLES OF
o The MEAC’s track record is not
impressive. It played little role in the REMAINING BODIES
introduction of a full‐scope auditing, This structure would also:
perhaps because the Committee itself
has no power, only an advisory function. STRENGTHEN THE ROLE OF:
‐ The Audit Estimate Administration − The Parliamentary Commissioner for
Committee (AEAC): Standards
o Since the members of the House of − The Committee on Standards in
Commons commission will be relieved Public Life (CSPL)
of their duties on the MEC, they will − The Committee on Members’
have extra time to receive and analyse Allowances (CMA)
House audit reports. The AEAC will − The Parliamentary IT Office
therefore not be necessary.
o As with the MEAC, it does not make sense STRENGTHEN THE COMMISSIONER’S ROLE AND
to place auditing deliberation in a INDEPENDENCE:
separate committee that merely advises Ultimately, the Commissioner for Standards
House management. Instead the annual should be an elected representative independent
House audit should be both reported to of all political parties. At the present moment,
the Commission and published, thereby however, the Commissioner does not operate
streamlining the system and enabling transparently enough, nor have a high enough
the Commission to be held to account in profile to make election realistic. This option
its use of the information. should, however, be seriously considered the next
‐ The Finance and Services Committee: time House of Commons administration is
o This committee merely duplicates reviewed.
functions that should be taken on by the Instead of suggesting elections for the role of
House of Commons Commission and, Commissioner, then, we propose that candidates
because of that, it disperses for appointment to this role should be put
responsibility for the running of the forwards by the Committee on Standards in
House. Public Life (CSPL), not by the House of Commons
‐ The Role of the Senior Salaries Review Body Commission. In selecting their candidate, the CSPL
in expenses: should publish all CVs submitted and hold
interviews in public, with members of the public
84
The last speaker to be ejected before Michael
Martin was Sir John Trevor in 1695:
85
http://www.telegraph.co.uk/news/newstopics/mps‐ The SSRB would still exist and continue to perform
expenses/5351271/MPs‐expenses‐last‐time‐Speaker‐ its role in other areas outside the remit of this report,
was‐ejected‐from‐Commons‐was‐1695.html e.g., setting top civil servant salaries.
37
able to ask several questions of prospective expenses system, they are well‐placed to replace
candidates. the Members Estimate Committee. The CMA’s
As well as changing the way the Commissioner main responsibility should be to recommend
is appointed, we recommend that Parliament also changes to the expenses system (including setting
add to her remit: the level of allowances), to solicit the opinions of
‐ The ability to initiate an investigation upon experts, the public and MPs and to produce bills to
discovering something untoward (as opposed implement its recommendations. It should also
to only responding to complaints). continue to be responsible for writing changes into
‐ The responsibility of receiving and examining the Green Book.
an annual audit of MPs’ expenses conducted ‐ In addition, the CMA should make sure that
by the National Audit Office. its proposals allow for easy collation and
‐ A duty to hold quarterly press conference publican of data and for yearly auditing.
open to anyone who publicly registers to ‐ In performing these responsibilities, the CMA
attend, providing monthly updates on all has several advantages over the current
investigations. (Registration is to enable Members Estimate Committee:
attendance for any member of the public, not o Its members can be removed from the
just press, but to prevent parliamentary committee more easily than can most
authorities packing the room and thereby members of the MEC, whose
excluding a hostile audience). membership is derived from their
‐ A duty to publish all written and oral holding another post
evidence received as the investigation o Its members are more likely to be
proceeds, unless there is a compelling backbenchers and will therefore have
reason not to do so (under the terms of the fewer vested interests in covering up
Freedom of Information Act). problems as opposed to addressing
them.
STRENGTHEN THE ROLE OF THE COMMITTEE ON
STRENGTHEN THE ROLE OF THE PARLIAMENTARY IT
STANDARDS IN PUBLIC LIFE (CSPL): OFFICE:
‐ Give the Committee the role of putting The IT Office should have an immediate role
forwards a candidate for the role of after the passing of any Act that concerns record‐
Commissioner for Standards. keeping so that a standard record‐keeping format
‐ Remove three non‐elected members and can be established. This will enable members of
include two more MPs (perhaps from the the public to search and compare information
abolished Standards and Privileges across different parliamentary bodies.
Committee) for a total of four MPs and five In order to do this, it might be necessary to
appointees. change some of the staff at the IT Office, who are
‐ Decide upon sanctions to be imposed on an merely accustomed to publishing .pdfs rather than
MP for improper conduct. Available options coding databases. It would be wise to recruit
should include: programmers who have worked with open source
o Referral of case to police for prosecution software to design easy‐to‐use democracy sites
for fraud such as mysociety.org.
o Bar from standing
o Triggering a by‐election THE FEES OFFICE
o Compulsory Fees Office training
Finally, we would maintain the role of The Fees
o Paying the benefit undeclared interest or
improperly used expense to the Office (renamed from the “Operations
Exchequer, plus a fine Directorate”), adding to its duties that of
‐ Receiving and deciding whether to grant publishing all claims, supporting evidence and
appeals from complainants unhappy with formal correspondence with members, including
the Commissioner’s investigation and verdict. refused claims.
If the appeal is granted, the CSPL should
conduct the re‐opened investigation itself.
STRENGTHEN THE ROLE OF THE COMMITTEE ON
MEMBERS’ ALLOWANCES (CMA):
Since members of the CMA already have
expertise and interest in the reform of the
38
4.3 ESTABLISH AN EXPENSES BANK ACCOUNT AND USER‐FRIENDLY DATABASE
Three simple measures would vastly increase Advantages of an MPs' Bank Account:
the quality and accessibility of expense records: ‐ Records of all payments and withdrawals will
‐ Establish a single MPs’ expense bank automatically be kept, in an easily
account and publish statements. understandable format
‐ It will encourage daily confidence in and
‐ Keep a comprehensive public database of
scrutiny of the expenses system without any
every claim. technical knowledge of Parliament, FOIs or
‐ Require an annual full‐scope audit of phone calls required.
expenses. ‐ It will encourage all Members to think of their
use of expenses as a public act.
AN MPs’ EXPENSE BANK ACCOUNT
MPs should pay for their expenses via debit A PUBLIC EXPENSE DATABASE
card withdrawals from a SINGLE MPs' BANK As well as a single MPs' Bank Account, records of
ACCOUNT, with monthly statements publicly expenses should be kept in a search‐able format.
available online and in the House Library. The A mock‐up of the kind of database that should be
account should also publish running costs as funds publicly available is included on page 40.
are used, day‐by‐day. The MPs' Bank Account ‐ This database should also be kept for MPs'
could either be run internally or contracted out to staff and should be available free in the
a third party bank and credited with the total House of Commons Library for those without
calculated cost of all allowances at the beginning computer skills (with scans of receipts able to
of each year. be printed out upon request).
Since it will be run internally, the Bank Account ‐ It should be constructed using an open
will be able to have secure public access features, source code so that other public bodies and
such as only displaying the bank account number members of the public can use and improve
and sort code to those with authorised access (i.e., it.
MPs who need to make payments from the ‐ It should record all changes made to create
an audit trail.
account).
Figure 16: An MPs' expense debit card FULL ANNUAL AUDIT
Finally, MPs should make it a statutory
requirement that the National Audit Office
conduct, and publish, a full‐scope audit of MPs’
expenses every year. MPs who are concerned
about how to keep the necessary records should
seek advice from the NAO or Fees Office.
NOTE: The Bank Account statements should be
published alongside receipts, not instead of them.
For all cash withdrawals (for items that cannot be
paid via debit card), MPs should attach a note to
the statement with a link to scans of the receipts
for these items (or to the relevant database entry
that will, in turn, link to the scanned receipt).
39
40
4.4 FULL PUBLICATION AND PUBLICITY
It should be a matter of course to publish all conferences, with open access to any
documents relating to expenses (and member of the public, to keep the public
parliamentary administration) unless there is a informed on investigations and complaints.
Televise the press conferences on the
compelling reason not to (specified as exceptions
Parliament Live TV site.
by the Freedom of Information Act, i.e., for serious ‐ Publish a full annual audit of MPs’ expenses.
privacy or security reasons). It is not enough to ‐ Publish all evidence in investigations unless
only supply information after three weeks of there is a compelling reason not to as
waiting for a response to an FOI. Parliament and allowed for under the Freedom of
MPs should regard their official activities as Information Act (i.e., for compelling security
inherently public. or privacy reasons).
As stated above, ultimately, the Commissioner
The MPs' Bank Account and database
for Standards should be an elected representative
described above will go a long way towards independent of all the main parties. Because
improving Parliament in this direction. In addition, current realities make this impractical (few people
Parliament should make the following changes: currently know who the Commissioner is), we
‐ Remove the gag on the Commissioner: this instead advocate that the Committee on Standards
means restoring to the Commissioner for in Public Life select a candidate for Commissioner
Standards the ability to speak to the press in a fair and transparent process way, publishing
that was abolished by Speaker Michael all CVs and holding interviews in public.
Martin in 2001.
‐ Establish quarterly Commissioner's press
FULL PUBLICATION: What does this mean in practice?
‐ It would mean the publication of every receipt, contract and lease agreement.
‐ It would mean publishing the results of a full‐scope audit every year (conducted
by the National Audit Office).
‐ It would mean the publication of a parliamentary bank statement every month,
so that taxpayers can keep track of their money.
‐ It would mean minimal redactions – that is, redaction only of information not in
the public domain: staff addresses, national insurance numbers, account
numbers and certain telephone numbers.
‐ It would mean the publication of all formal correspondence between MPs and
the Fees Office.
‐ It would mean seeing all refused claims and the reason for their refusal.
‐ It would mean publication of all publishable material for which an allowance is
used, e.g., any public communications funded by the Office Costs Allowance
(after the abolition of the Communications Allowance) should be publicly
available. This will help to ensure the allowance is not used to fund party
political communications and instead only funds the necessary distribution of
official information.
‐ Finally, all this information would be easy to find: it would be published on a
central website for the Fees Office, on the website of the Commissioner for
Standards, and linked to from the Commons directory for every MP.
41
4.5 MEANGINFUL PENALTIES FOR BREAKING THE RULES
MPs should have to suffer significant ‐ Her constituents should have the power to
consequences if they: trigger a by‐election if they collect the
‐ Fail to publish an expense claim or signatures of 5% of the constituency
relevant document electorate during the MP’s suspension.
‐ Fail an audit of their expenses
‐ Fail to declare an interest LETTER OF CENSURE
‐ Repeatedly try to get away with dodgy For more minor, but repeated, infractions of
claims the rules, MPs should receive a public letter of
These consequences should be extremely censure to highlight their conduct to their
serious if an MP is found to have done any of the constituents. The Letter should be viewable via the
above knowingly, with a low threshold for being expenses database and available free in the MP’s
debarred from Parliament for wilful corruption. constituency office and Commons library.
In part, the consequences for these actions will
be greater merely by ensuring that all details of RESIGNATION FROM POSTS OF AUTHORITY
MPs’ money‐related activities are published. But MPs who are suspended from Parliament or
publication alone is not enough to ensure win a conduct‐related recall vote should be barred
compliance. It would be pleasant to think that MPs from taking on ministerial posts or chairmanships
could be trusted to police themselves under the of any committees until they have not received a
public eye, but experience suggests otherwise. letter of censure for two years.
Instead, we here list some measures that
would dis‐incentivise corrupt activities and, on ‐ TRAINING
page 43, we supply a suggested schedule of MPs who repeatedly submit inappropriate
offences and appropriate sanctions that should claims or unsubstantiated claims should have to
result. undergo an intensive full day of training with Fees
Office staff to ensure that they understand what
A LEGALLY BINDING CONTRACT they can claim and how to keep track of their
All MPs who wish to claim expenses should claims. If their claims are usually handled by a
have to sign a legally binding contract accepting particular member of their staff, that staff member
responsibility for publishing their claims and should also attend.
abiding by the letter and spirit of the rules. This This training should also be available to MPs
would provide a legal basis for citizens to who have not been censured but wish to ensure
prosecute MPs for fraud when they wilfully break they understand the rules.
the rules.
‐ FINANCIAL PENALTIES
RECALL VOTES AND SUSPENSION FROM PARLIAMENT All improperly claimed expenses should be
Suspension from Parliament has always been repaid in full in addition to a fine.
an attractive idea as a punishment. In the past, ‐
however, it has not been shown to be effective. ‐ PUBLICITY
Keith Vaz, for example, was suspended for a In addition to adding all notes of censure and
month in 2002 for failing to declare outside sanction to the public expenses database and
interests and then making false allegations and Register of Interests, the Commissioner for
wasting police time during the investigation of his Standards should, at every quarterly press
case. Yet he now sits on the Home Affairs Select conference, announce a list of those MPs who
Committee have been censured or subject to sanctions and
In order to make suspension from Parliament a state the reason. Those in attendance should be
serious penalty, citizens should be given power to permitted to ask questions.
trigger a recall by‐election during their MP’s
suspension. If an MP is suspended, therefore:
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Figure 17: Schedule of sanctions to dis‐incentivise corruption
OFFENCE SANCTION PUBLICATION
Repeatedly filing Claims to be refused or paid back and, if Note made of claims repeatedly
inappropriate claims or more than eight occur within a year, MP refused and training received. Letter
buying inappropriate items on should undergo a mandatory day of training of censure and evidence of money
the expenses debit card. with the Fees Office and receive a public paid back published.
letter of censure.
Filing a claim or buying items Claim refused or to be paid back. Note made of claim refused and
without filing supporting evidence of money paid back
evidence. published.
Repeatedly filing claims or Claims refused or to be paid back and, if Note made of claims repeatedly
buying items without over five within a year, MP should undergo refused and training received. Letter
supporting evidence. a mandatory day of training with the Fees of censure published.
Office and receive a public letter of censure.
Filing a claim and/or Reimbursement reduced 50% and Note made of late claim and
supporting evidence for the decreases by 5% for every week late evidence of money paid back
claim over a month after the thereafter, to zero. If already bought using published.
date on which cost was debit card, MP to pay back penalty amount.
incurred.
Failing to immediately pay Amount to be paid back will accrue interest MPs’ expense account highlighted on
back a claim deemed at 20% per month. Once fine reaches 100%, database as owing monies or
inappropriate or lacking MP’s expense account and debit card use suspended.
supporting evidence. will be suspended.
Deliberately falsifying Automatically triggered recall by‐election. Highlighted note made on claim and
information on a claim of Claim to be paid back plus fine of 300% the event listed in refused claims.
value up to £100. claim amount.
Deliberately falsifying Automatic ejection from the House and Highlighted note made on claim and
information on a claim of debarment from standing for 10 years. event listed in refused claims.
value over £100. Claim to be paid back plus fine of 300% the
claim amount.
Inadvertently failing to First two times, a public letter of censure. Interest added to the Register of
declare an outside interest of Third time and thereafter, suspension from Interests with a note of censure.
a value up to £500. the House under the terms below (as for
value of over £500).
Inadvertently failing to Suspension from the House for a time the Interest added to Register of
declare an outside interest of Committee on Standards in Public Life Interests and highlighted.
a value over £500. deems appropriate. During suspension, a
recall by‐election may be triggered if 5% of
constituents’ signatures are collected in its
favour.
Deliberately failing to declare Automatically triggered recall by‐election. Interest added to Register of
an outside interest of a value Interest amount and a fine of 300% the Interests and highlighted. Proof of
up to £500. interest amount to be paid to the payment to Exchequer required (e.g.,
Exchequer. transfer receipt).
Deliberately failing to declare Automatic ejection from the House and Interest added to Register of
an outside interest of a value debarment from standing for 10 years. Interests and highlighted. Proof of
over £500. Interest amount and a fine of 300% the payment to Exchequer required (e.g.,
interest amount (up to a maximum of transfer receipt).
£100,000) to be paid to the Exchequer.
Misleading the Commissioner Debarment or suspension from the House, Note made on MP’s name on both
during an investigation. as deemed appropriate by the Committee expenses database and Register of
on Standards in Public Life. During Interests.
suspension, a recall by‐election may be
triggered if 5% of constituents’ signatures
are collected in its favour.
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CONCLUDING REMARKS
For too long, British politics have carried on in or another every four years. It is no longer
the world of cosy back‐room dealing and enough that politicians descend from on high
systematic paper‐shredding. It is high time for a occasionally to give lofty speeches to the press.
Instead, we are entering an age where
change.
citizenship means taking responsibility for one's
In the musty chambers of Parliament, society in a way never before possible. It does
irrational arrangements and secretive ways are not mean merely making an informed choice
allowed to fester: the House of Commons is still a among a few options. It means looking up every
place in which newly elected Members have to idea and every factor that goes into these
beg clerks just to get access to a desk where they options and, if we so desire, constructing an
can work, where departments give you different entirely new option for ourselves.
Parliament has not kept pace with this
answers depending on what day you ring them,
change. Instead, as Heather Brooke puts it, we
and where politicians have to perch on the steps suffer under “a class system of access to
outside for stray wifi just so they can stay in information. The privileged and powerful get
contact with the outside world. access, the common citizenry does not.
In short, there is a wall between public and Information comes into the public domain with
Parliament shored up by tradition, fear of unseen strings attached.”
scrutiny, technical incompetence and sheer Parliament and politicians can be dragged
bloody‐mindedness. kicking and screaming out of this system and
In 2005, Grant Shapps MP complained, “The into the modern age, as they have been thus far.
problem is that not only does this place make it They can continue to engage in the shameful
harder than average to contact people outside, it spectacle of redactions, excuses and hiding from
actually blocks you from accessing your outside the public. Or they can decide to adhere to the
contacts using your own laptop, so it is working basic principle of a democracy: that people are
against you. […] We come back to the same thing to be trusted with their own fate.
every time, but it is a fundamental problem. It That means trusting people with
puts a blockage in the way of progress, almost information and letting the walls of Parliament
deliberately.” become permeable. It means abandoning the
He was referring to technical problems illusion that there is something inherently
getting online in Parliament (or the “Estate,” as it different about a person on the visitors' balcony
is known to insiders). But he could just as well and a person on the Commons floor. The
have been referring to the culture of secrecy and expenses crisis is a rare opportunity for
distrust of the public that is imbued in the entire Parliament to do this.
institution of the House of Commons. Much of the public already instinctively
In this report, we have tried to put forward understands most of what is said in this report
proposals for better rules and a sensible in relation to Parliament. It is not an appeal to
rearrangement of the Commons' governing citizens. It is an appeal, however, to members –
structure – one that makes it easy to organise not just Members of Parliament, but to all
and release information. members (clerks, programmers, managers, and
These proposals are not just about efficiency. so on) of the deeply rooted political culture of
They are about changing what Parliament means secrecy and self‐preservation at all costs. It is an
to our society. For centuries, Parliament (roughly appeal to those people to not merely stay
at least) played the part of defending British “within the rules” but to persistently question
liberties against rapacious despotism by royalty. the rules – to always insist upon viewing the
But now, the meaning of those liberties is rules from the frustrating “outside” as well as
changing. It is no longer enough that all citizens the cosy "inside.”
are permitted to cast their lot in with one party
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APPENDIX
Official “organogram” of House of Commons administration. Available at:
http://www.parliament.uk/documents/upload/HCCorganogram.pdf
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© Juliet Samuel, Sunlight Centre for Open Politics, September 2009
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