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MPs’ allowances – updated 9th December 2009
I thought it would be helpful to provide my constituents with an update since my last update on 18th June 2009. The new information comes first with previous information published on 18th June following.
The House of Commons authorities will publish edited scans of 2008/2009 Additional Costs Allowance (ACA) claims and the first quarter of 2009/2010 Personal Additional Accommodation Expenditure claims on the Parliament website, www.parliament.uk, on the morning of 10th December 2009. I have published summary information below.
Sir Thomas Legg’s ACA Review – “Mr Harper has no issues”
I received my first letter from Sir Thomas Legg KCB QC on 12th October 2009. He concluded that in my case no repayments are required and no further supporting evidence is required for my claims.
The relevant paragraph from Sir Thomas Legg’s letter says:
“In your case, having examined the records in the light of my interpretation of the rules and standards in force at the time, I have not identified any payments made to you under the ACA [Additional Costs Allowance] during the review period [2004-05 to 2008-09] which I consider call for any repayment or further supporting evidence to be provided by you. Accordingly, my conclusion is that no action is required from you in this matter.”
I received my final letter from Sir Thomas on 30th November 2009. The relevant extract says:
“Following my earlier provisional findings, set out in my letter of 12th October, the conclusion about the ACA payments made to you that I now intend to include in my report to the Members’ Estimate Committee is as follows:
Mr Harper has no issues.”
Capital Gains Tax
As I said in my original note on this subject below, the flat on which I claim allowances is also my second home for Capital Gains Tax purposes. This means that if I sell it and make a profit then I will pay Capital Gains Tax on that profit. All MPs with an additional home now have to make an official declaration to this effect with the Fees Office and I have done so.
2008/2009
The detailed receipt level information for Additional Costs Allowance (ACA) will be published by the House authorities on 10th December 2009. Far less information will be redacted than for the first batch of information published earlier this year.
In early 2010 the House authorities will make available a searchable database of claims linked to edited scans of receipts relating to ACA, IEP and Communications Allowance.
They will also publish details of expenditure against travel, staffing and stationery allowances.
They will also publish details of functions/meetings hosted in the House since 2004 including the identity of the organisations involved. This is in response to an FOI request.
In the meantime I thought it would be helpful to constituents to provide the total amount claimed for each allowance with a breakdown of ACA by category. I don’t have every figure available yet so I have left those items blank; I’ll add those when I get them.
In 2008/2009 I claimed a total of £164,365, which placed me xth out of 646 MPs. Out of this total, 62% (£102,519) was to pay for the costs of the staff who work in my offices in the constituency and at Westminster. This is an increase of £18,254 compared to 2007/2008. This reflects the fact that the amount of the allowance was increased to enable MPs to hire more staff to deal with increased workload. I took on a second paid member of staff at Westminster. A further £19,405 paid for the running costs of my office. £8,243 was spent from the Communications Allowance, which we will abolish on coming into Government. I claimed £10,717 for travel; this includes £x for my wife’s travel between London and the Forest of Dean. Centrally purchased stationery and associated postage costs amounted to £x. Centrally provided computer equipment cost £x.
Finally, I claimed £23,481 for the additional costs of living in London (ACA).
£
Mortgage interest 14,467.20
Utilities 827.78
Council Tax 1,358.62
Cleaning 1,262.00
Service/maintenance 2,891.00
Repairs/insurance 936.41
TV Licence 139.50
Furnishings 1,483.00
Ground rent 115.00
Total 23,480.51
2009/2010
The detailed receipt level information for Personal Additional Accommodation Expenditure (PAAE) for the first quarter will be published by the House authorities on 10th December 2009.
In early 2010 the House authorities will make available a searchable database of claims linked to edited scans of receipts relating to PAAE, Administrative & Office Expenditure (AOE) and Communications Allowance for the first quarter.
They will also publish details of expenditure against travel, staffing and stationery allowances for the first quarter.
Information for subsequent quarters will be published in due course.
2010/2011
Starting with the 2010/2011 allowance year, the new Independent Parliamentary Standards Authority will become responsible for the publication of allowances information.
Information below published on 18th June 2009
Information relating to MPs’ Additional Costs Allowance (ACA), Incidental Expenses Provision (IEP) and Communications Allowance claims dating back, in my case, to 2005/2006 and up to 2007/2008, together with details of stationery and postage costs covering the same period, will be published on the morning of 18th June on the Parliament website, www.parliament.uk.
I thought it would be helpful to constituents to provide some further details and to explain my approach on the Additional Costs Allowance (what is commonly called the second home allowance).
Additional Costs Allowance
Immediately following my election in May 2005, for three weeks in total, I stayed in a hotel near the House of Commons and claimed only for the room charge. From the beginning of June to the start of the summer recess, as a temporary measure and more cost effective than a hotel, I was able to rent a room in the home of an acquaintance. Since I was then a backbencher I did not need to be in London during the summer recess. Since December 2005 I have been on the Conservative Front bench and this does mean that I spend a significant part of each recess working in London.
In October 2005, as a more permanent solution, I purchased a flat in central London. I used the ACA to pay for the necessary costs associated with purchasing this flat. I have a mortgage of £256,500 with Northern Rock and a further loan from Barclays of £13,500 which were together used to finance the purchase price of £270,000. The mortgage is interest only and I claim for the mortgage interest. The loan is a repayment loan and I only claim for the interest element. This flat is the only second home I have had since I was elected. It is also my second home for Capital Gains Tax purposes. My main home is in the Forest of Dean and I, of course, pay for all the costs of this home out of my taxed salary, just like my constituents.
Since I purchased the flat I have claimed for utilities, council tax, BT bill, service/maintenance charges, cleaning, insurance costs, repairs (but not any renovation or capital improvement), TV Licence and decorating. I have furnished the flat and have claimed for some of these costs. I believe all those purchases to have been both within the rules and, more importantly, reasonable.
Indeed, the tests I have always applied to anything I claim for are first, is it within the rules? Second, and probably more important, is it reasonable? I hope that, when they look at the full details of my expenses and allowances, my constituents will consider that I have indeed been reasonable in all that I have claimed.
2005/2006
In 2005/2006 I claimed a total of £129,972. Out of this total, over half (£68,346) was to pay for the costs of the staff who work in my offices in the constituency and at Westminster. A further £27,524 paid for the running costs of my office (IEP). I claimed £7,469 for travel on Parliamentary business; travel costs for my staff were £217. Centrally purchased stationery and associated postage costs amounted to £4,327. Centrally provided computer equipment cost £898.
Finally, I claimed £21,191 for the additional costs of living in London (ACA).
£
Hotel costs 1,524.00
Room rent 534.11
Costs associated with purchasing the flat 13,178.38
Mortgage interest 4,058.31
Service charge 1,152.14
Council Tax 456.90
TV Licence 126.50
Insurance 111.20
Utilities 49.76
21,191.30
2006/2007
In 2006/2007 I claimed a total of £138,214, which placed me 316th out of 646 MPs. Out of this total, over half (£78,112) was to pay for the costs of the staff who work in my offices in the constituency and at Westminster. A further £25,288 paid for the running costs of my office (IEP). I claimed £9,517 for travel on Parliamentary business; travel costs for my staff were £59. Centrally purchased stationery and associated postage costs amounted to £2,599. Centrally provided computer equipment cost £898.
Finally, I claimed £21,741 for the additional costs of living in London (ACA).
£
Mortgage interest 14,582.20
Utilities 386.31
Council Tax 1,070.98
Service/maintenance 2,375.76
Insurance 561.40
TV Licence 131.50
Furnishings 2,396.86
Decoration 236.21
Total 21,741.22
2007/2008
In 2007/2008 I claimed a total of £151,563, which placed me 246th out of 646 MPs. Out of this total, over half (£84,265) was to pay for the costs of the staff who work in my offices in the constituency and at Westminster. A further £21,262 paid for the running costs of my office. £9,362 was spent from the Communications Allowance, which we will abolish on coming into Government. I claimed £8,987 for travel; this includes £1,638 for my wife’s travel between London and the Forest of Dean. Centrally purchased stationery and associated postage costs amounted to £3,733. Centrally provided computer equipment cost £976.
Finally, I claimed £22,978 for the additional costs of living in London (ACA).
£
Mortgage interest 13,761.21
Utilities 806.49
Council Tax 1,305.95
Cleaning 946.00
Service/maintenance 2,592.92
Repairs/insurance 1,183.90
TV Licence 123.89
Furnishings 1,288.99
Decoration 853.65
Ground rent 115.00
Total 22,978.00
Questions from constituents
A number of constituents have written to me about this issue and I have written back to all of them and have managed to speak to some of them on the ‘phone.
I held an ‘expenses surgery’ on Friday 5th June in Cinderford, in order to give any constituent who wanted to the opportunity to talk to me face to face about my own expenses and allowances. This was well publicised on my own website and in all our local newspapers. Three constituents took advantage of this opportunity.
Sunday Telegraph ‘best value’ MPs – Forest MP 29th in ‘best value’ table
In a recent article (7th May 2009), the Sunday Telegraph ranked MPs by comparing how much work they did with the amount of expenses and allowances they claim to do their jobs.
According to their analysis I was the 29th ‘best value’ MP.
Their value for money table was compiled using the 2007/2008 expenses figures.
It also took into account how hard each MP works, as measured by their voting attendance, how often they speak in debates, and the number of written questions they put to ministers. They excluded Cabinet ministers and opposition leaders, whose many official duties often take them away from Westminster. Also excluded were the Speaker, his deputies, Northern Ireland MPs, and MPs who recently won their seats in by-elections.
Link to article - http://www.telegraph.co.uk/news/newstopics/politics/5105863/Best-and-worst-value-MPs-revealed.html
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