MPs Expenses - The Big Picture

The big picture about MPs expenses is not about the more ridiculous items honourable members have lavished on themselves – disgraceful as some of these are.

The big picture is about their accommodation allowances which allow many MPs to acquire a small personal fortune – at public expense.

Take the case of Ian Gibson, Labour MP for Norwich North.

According to the Daily Telegraph Mr Gibson bought a flat in 1999 for £195,000 – and paid for the upkeep and maintenance costs out of his accommodation allowance – over four years he claimed £80,000 in mortgage interest and bills.

Nothing wrong with that in itself – because MPs should not be out of pocket for having to live in London when Parliament is sitting – commuting is not an option for most, so the only answer is to rent or buy a property or stay in a hotel.

But Mr Gibson’s case illustrates well – what’s wrong with the present system.

Firstly, he allowed his daughter and her partner to stay in the property – he was there himself only 3 days a week - so he must have bought a property that was larger than his own needs.

Mr Gibson also allowed his daughter and her partner to live there rent free – so in effect the tax payer handed a sizeable rent free gift to the MP and/or member of his immediate family.

But the real scandal is that Mr Gibson went on to sell the property to his daughter at a knock down price of £162,000 – £33,000 less than he paid for it – and much less than the property was actually worth – £325,000 or thereabouts according to the Daily Telegraph and other media reports.

So, the MP made a huge personal profit of around £130,000 (£325,000 - £195,000) which he gave generously his daughter – but of course this profit was acquired using public funds.

If that is representative of other MPs – they are receiving a huge windfall (tax free in many cases) – at public expense.

If just half of the 646 MPs are in the same position as Mr Gibson the sums are – 343 x £130,000 = or an eye watering £44.59 million.

Now that really is crazy – because MPs are not working for this money, they're not doing a job, providing a service, or taking a risk – they're just benefiting out of the property market - but using public money to do so.


And that’s what should be stopped – when such properties are sold they should be sold for their true market value – and the ‘profit’ element should go back to the tax payer – not into the pockets of MPs – their friends, families or business acquaintances.

And £44.59 million could always make a helpful contribution - towards meeting the costs of equal pay.

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