MPs' allowances — External audits and no more furniture — rejected — 3 Jul 2008 at 17:17

The majority of MPs voted against accepting recommendations 1-4, 6, 7 and 13^[1] of the following recommendations made by the Members Estimate Committee.^[2] See below for details of these recommendations.

They did this by replacing the motion which read:^[3]

• This House
• welcomes the Third Report from the Members Estimate Committee: Review of Members Allowances (House of Commons Paper 578);
• endorses in particular the recognition of the need for a robust system of scrutiny for parliamentary allowances and the accompanying emphasis in the Report on improved audit;
• and is of the opinion that
• Recommendations 1-5 (audit and assurance),
• Recommendations 6 and 7 (scope of overnight expenses),
• Recommendations 9 and 10 (Communications Allowance),
• Recommendations 11 and 12 (travel),
• Recommendations 13 and 14 (overnight expenses),
• Recommendation 15 (resettlement), and
• Recommendations 16-18 (other SSRB recommendations)
• should be implemented, subject to decisions of the Members Estimate Committee with respect to their introduction and application;

with an alternative motion, which read:^[4]

• This House
• welcomes the report from the Members Estimate Committee;
• recognises the need to strengthen the system of scrutiny and is of the opinion that a rigorous internal system of audit of the Additional Costs Allowance be introduced covering 25 per cent. of hon. Members each year, and every hon. Member each Parliament;
• and is of the opinion that Recommendations 5 (staff contracts), 8 (constituency offices), 9 and 10 (communications allowance), 11 and 12 (travel), 14 (overnight expenses), 15 (resettlement), and 16, 17 and 18 (other SSRB recommendations) be approved

The rejected recommendations are as follows:

Recommendation 1 was for a "robust new system of practice assurance involving regular financial health checks on records kept and processes used in Members' offices with outside professional teams covering about 25% of Members each year". This was substituted by a "rigorous internal system of audit".

Recommendation 2 would have extended "the scope of the audit engagement so that it is the same as for other public bodies."

Recommendation 3 would have reduced the receipt threshold from £25 to zero so that all claims, however small, would have had to be backed by receipts.

Recommendation 4 was for the Green Book (setting out the rules on allowances for Members) to be revised to specify more detailed rules.

Recommendation 6 was for MPs to no longer be able to claim reimbursement for furniture and household goods or for capital improvements.

Recommendation 7 was that MPs representing constituencies in outer London should be eligible to claim half of any overnight expenses allowance.

Recommendation 13 was for the Additional Costs Allowance to comprise of a £19,600 maximum budget for accommodation (excluding furniture, household goods and capital improvements) but operating on the basis of itemised reimbursement and a flat rate of £30 for daily subsistence.

• [1] Conclusions and Recommendations, Members Estimate Committee - Third Report, House of Commons, 23 June 2008
• [2] Members Estimate Committee - Third Report, House of Commons, 23 June 2008
• [3] Nick Harvey MP speech, House of Commons, 3 July 2008
• [4] Don Touhig MP speech, House of Commons, 3 July 2008

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