Government 'fully accepts' Kelly report

Commons leader Harriet Harman has said that the government fully accepts and welcomes Sir Christopher Kelly's recommendations on reform of MPs’ expenses.

She told the Commons the report is to be taken as a whole, and it was a matter for the new Independent Parliamentary Standards Authority (Ipsa) to formulate the new rules.

Harman said that as MPs had agreed to have previously agreed to an independent expenses regulator, "it does not make sense for us now to vote on the future shape of our allowance system".

The Kelly report was another "important step" in restoring public confidence in the expenses system, for what had happened in the old system had "knocked that confidence," Harman said.

She told the House a new regime will come into effect in the new Parliament but it will be for Ipsa to implement it and in the meantime the interim system will apply.

"In the light of this, the government welcomes and fully accepts the Kelly report which should be taken as a whole," she said.

"It will be for the Ipsa to take it forward. This is the approach Kelly's report itself recommends."

The Commons leader said she does not want a parliament that is effectively closed to those on low incomes or with small children and that the Kelly report acknowledges this.

And she reiterated that there will not be a vote on the new regime, as MPs agreed that Ipsa would be in charge of implementing the report's findings.

Shadow Commons leader Sir George Young began by deploring the "selective leaking" of the Kelly report to the media last week.

The Kelly recommendations had formed the basis for an "enduring settlement" that is both fair to taxpayers and to MPs, and should be implemented as soon as possible,” he said,

Young declared an interest in the employment of family members, calling for any changes to be in line with employment law.

Harman informed MPs that she too deplored the leak and in response to calls for greater urgency she said Ipsa was already up and running, with no need to legislate any change to its structure.

Proposals on employing spouses should not "cause a cloud to hang over the head" of those currently doing good public service and Ipsa must make certain changes do not fall foul of employment law, she said.

Liberal Democrat spokesman David Heath attacked those MPs who had deplored the work of the report, "those who don't like it have a choice as to whether they reapply" to be MPs, he said.

He also criticised the piecemeal methods that had been used in making changes to the allowances regime.

In response Harman said the report should indeed be seen as a package and not "menu of options".

She also acknowledged the criticisms made by Kelly in the lack of coherence in Parliament's response to the expenses scandal so far.

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