Party leaders back proposal for radical expenses overhaul

London: All three main party leaders on Thursday gave their backing to Sir Christopher Kelly's proposals for a radical overhaul of MPs' expenses as it was announced the chairman of the new body overseeing the process would be paid up to £100,000 (Dh609,000) a year.

The Commons Speaker, John Bercow, confirmed he had selected Professor Sir Ian Kennedy as the chair-designate of the new Independent Parliamentary Standards Authority (Ipsa).

During a short statement in the house, Bercow had to call for order as MPs from all sides reacted noisily to the news that Kennedy would be paid "a maximum of 100,000 a year."

He said: "His appointment must be confirmed by the House of Commons before he is formally appointed by the Queen."

The announcement came in a short statement immediately after prime minister's question time when Gordon Brown led the calls for Kelly's recommendations to be accepted and implemented as quickly as possible.

The long-awaited report published yesterday by the chairman of the committee on standards in public life called for a ban on MPs claiming for mortgage interest or employing family members at the taxpayer's expense.

An array of stringent new rules, which come in the wake of the expenses scandal, are likely to provoke further objections from MPs but Kelly insisted they were "fair and reasonable" and would bring Westminster into line with other walks of life and other legislatures.

In an unusual show of unity, all three main party leaders yesterday pledged their support for the proposals.

Brown said people wanted to know that the new system would "be open and fair," and said Ipsa would begin work on the committee's recommendations immediately.

Ipsa duties

Ipsa has been tasked with consulting on Kelly's proposals before deciding how they will be implemented.

It will also take over responsibility from the Commons fees office for overseeing and approving future expenses claims.

David Cameron, the Conservative leader, said it was important that the Kelly recommendations were accepted "in full."

MPs should no longer vote on their pay, expenses, pensions or terms of service, he said. This was an essential part of "restoring faith" in parliament and politics after the expenses scandal.

"By accepting this report, today should mark an important day, a day when we say that from now...MPs should not vote on our pay, our expenses, our pensions, our terms of service, our resettlement, or our expenses packages ..."