Kelly announces reform proposals

London: MPs are to be banned from claiming mortgage interest on expenses after an "appropriate" transitional period, under the recommendations of Commons watchdog Sir Christopher Kelly published yesterday.

Members of parliament will also be stopped from employing family members by the end of the next parliament or within five years, the long-awaited report stated.

Kelly, the chairman of the committee on standards in public life, insisted his proposals were "fair and reasonable" and would bring Westminster into line with other walks of life and other legislatures.

He acknowledged that his wide-ranging proposals would mean "substantial change" for MPs and said that, where necessary, they should be phased in with a suitable period of transition.

The stringent new rules, which come in the wake of the expenses scandal, are likely to provoke further objections from MPs but all three party leaders have indicated their willingness to uphold Kelly's recommendations, in a bid to allay public anger over the debacle.

Acceptance

Following the publication of the recommendations, a spokesman for the prime minister said Gordon Brown accepted Kelly's report "in full". David Cameron, the Tory leader, and Nick Clegg, his Liberal Democrat counterpart, are likely to follow suit.

Kelly said he had received assurances from all three that they understood the importance of "putting the matter behind them" and that he hoped that would mean they would uphold his recommendations. The proposals are now expected to go to the new Independent Parliamentary Standards Authority for consideration without MPs themselves being able to vote on the matter.

Among the proposals are that the generous resettlement grants for MPs who voluntarily step down will be stopped from the general election after next, with MPs receiving just eight weeks' pay instead.

Other key recommendations include giving the new IPSA the power to determine the pay and pensions of MPs as well as their expenses. On claims for mortgage interest the report said that there should be no further capital gains at public expense, and the controversial practice of "flipping" properties should no longer be possible.