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Legislators

MPs' Expenses Scandal Sparks Calls for Reform

Strategic Insights

— 2 min read

The ongoing scandal of MPs' expenses has dealt a blow to public trust in the government, with Energy and Climate Change Secretary Ed Miliband acknowledging that the system needs to be reformed. Miliband, who emerged unscathed from the investigations, stated that the revelations are more serious than the current opinion poll numbers, which show the Conservatives with a 16-point lead. The scandal has sparked calls for reform, with Miliband, as well as other cabinet ministers, calling for a tightening of the system and greater public oversight.

Key Takeaways:

  • The energy and climate change secretary, Ed Miliband, has acknowledged that the system of MPs' expenses needs to be reformed, citing the current scandal as a wake-up call for politicians.
  • The government has responded to the scandal with a three-point plan: acknowledging the need for change, highlighting the prime minister's role in leading the case for change, and refusing to answer detailed questions about ministers' expense claims.
  • The culture secretary, Andy Burnham, has gone further, calling for the public to oversee a new system of allowances and for the current system to be replaced by a "much tighter" system that the public has endorsed.
  • The communities secretary, Hazel Blears, has been criticized for "flipping" her second home, declaring a south London flat to be her main residence to avoid paying capital gains tax on a profit of £45,000.
  • Other MPs under pressure include the work and pensions minister, Kitty Ussher, who spent £20,000 renovating a rundown house, and Tony Blair, who used his allowance to remortgage his constituency home.
  • Sinn Fein's five MPs have also been criticized for spending hundreds of thousands of pounds on renting three London properties.

Statistics:

  • 43% of voters supported the Conservatives, according to a Sunday Times-YouGov poll.[1]
  • 27% of voters supported the Labour Party, the same poll showed.[2]
  • £200,000 was the price for which Hazel Blears sold her south London flat in August 2004, making a profit of £45,000.[3]
  • £18,000 was the avoided tax bill for Hazel Blears due to declaring the property as her main residence.[4]
  • £20,000 was the amount spent by Kitty Ussher renovating a rundown house she bought in Brixton, south London.[5]
  • £296,000 was the amount for which Tony Blair remortgaged his constituency home in 2003, almost 10 times the sum he paid for it in 1983.[6]
  • £3,600 was the monthly rent paid by Gerry Adams and Martin McGuinness for a flat in London, which a local estate agent estimated should cost £1,400.[7]

Sources:

  • [1] Sunday Times-YouGov poll, cited in the article.
  • [2] Sunday Times-YouGov poll, cited in the article.
  • [3] Article, citing the sale of Hazel Blears' flat in August 2004.
  • [4] Article, citing the avoided tax bill for Hazel Blears.
  • [5] Article, citing Kitty Ussher's renovation expenditure.
  • [6] Article, citing Tony Blair's remortgaging of his constituency home in 2003.
  • [7] Article, citing the rent paid by Gerry Adams and Martin McGuinness for a flat in London.

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