Saturday, 8 December 2012

Transparency re London accommodation arrangements

One of the welcome features of the new expenses system is that constituents can see all expenses claims online here, including everything from claims for rent on the constituency office, office phone bills or standard class rail tickets to Wesminster.

In addition, the subject of MPs' accommodation arrangements in London continues to be the focus of some attention, so I thought it would be a good opportunity to provide an update on my own arrangements.

When first elected in 1997 I rented a room for a short period but it quickly became apparent that in the longer-term it would be cheaper to have a mortgage and claim the interest.  Over the years I have stayed overnight and claimed mortgage interest on a bedsit or one-bedroom flat in Westminster. 

Under the rules of the scheme, I would be entitled to retain any profit made from increases in the value of such property prior to the 2010 General Election.  But I have made it clear that in my view the purpose of the scheme is simply to give MPs somewhere to live whilst in London and not to provide a profit.   I have therefore said for some years that when I no longer owned a property in Westminster I would return any profit to the taxpayer.  I am now making arrangements to do this.

In October this year I sold my London flat and am now renting (and ceased claiming for mortgage interest in July).    I estimate that I made a profit, net of capital gains tax and legal fees etc. of around £22,000 through increases in the value of the properties on which I have claimed.  I have therefore written to IPSA confirming that I wish to return this sum and asking for details of how I can return this amount to the taxpayer.

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Well Done Steve!

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Steve, it is good to see another MP's doing the right thing, like Nick Clegg has done in not profiting from Second Homes. This promotes the proper culture of public service. Standing against the far too prevalent culture of self gratification too often perpetrated by those gifted with "safe seats".

Way to go Steve Webb MP. *grin*

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