14/05/2009

Labour MP Suspended Over Mortgage Expense Claims

Labour MP Elliot Morley has been suspended from the party "until further notice" following his admission he claimed £16,000 for a non-existent mortgage.

Prime Minister Gordon Brown made the announcement as he launched Labour’s Euro election.

The PM said: "Where standards are transgressed and mistakes are made we have got to take action."

Earlier, Mr Morley said the expense claim was a "mistake" due to "sloppy" accounting, and he had paid the money back.

In statement he said: "I deeply apologise for such sloppy accounting in a very loose and shambolic allowance system but there is nobody to blame but myself and I take full responsibility for this.

"I have asked Sir John Lyons the Commissioner for Standards to demonstrate that there was no intent. I will co-operate fully with his Committee."

Meanwhile, Conservative leader David Cameron's parliamentary aide has resigned from his position as the row over expenses claims escalates.

Tory MP Andrew MacKay quit over what the party said was an "unacceptable" expenses claim.

The Bracknell MP, who voluntarily submitted his claims to party officials, will also appear before a panel to discuss paying back some of the allowance.

MacKay, who is married to Bromsgrove MP Julie Kirkbride, claimed the full second-home allowance on their joint mortgage for a London home until April this year.

However, at the same time his wife also claimed the full annual sum for mortgage interest on a constituency home. This meant they appeared to have two second homes but no main home.

A spokesman for Mr Cameron said: "That examination of Mr MacKay's past allowances revealed an unacceptable situation that would not stand up to reasonable public scrutiny.

"Although Mr MacKay maintains that those arrangements were agreed by the fees office, he resigned this morning with immediate affect.

"Mr MacKay has also agreed to appear in front of the scrutiny panel to discuss how much of the allowance should be paid back."

Several senior Tory figures - including Michael Gove and Alan Duncan - have agreed to repay money they claimed, after the party’s leader said all MPs must be able to defend their allowance claims, following the publication of damaging allegations in the Daily Telegraph.

(JM/KMcA)

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