MPs brace themselves for letters detailing concerns over expenses claims

Source: The Telegraph - Robert Winnett, Deputy Political Editor

Hundreds of MPs returning to Westminster are braced to receive letters from Sir Thomas Legg detailing concerns over their expense claims over the past five years.

Sir Thomas, a former senior civil servant, brought in a team of top accountants from Price Waterhouse Coopers to trawl through the expenses claims made by every MP since 2004.

Only those already being investigated by the police or Parliamentary authorities have been excluded from the audit.

The Legg inquiry is expected to prove more damaging for senior Labour figures as the Conservatives conducted their own audit before the summer break and many members of the shadow Cabinet have already repaid money.

Although more than 100 MPs have already repaid money voluntarily after being exposed for making questionable claims by the Daily Telegraph, many more will have to justify their expenses to Sir Thomas in the coming weeks.

There is a growing furore over Sir Thomas’s interpretation of the rules. The senior mandarin is thought to have taken a hardline approach to what is acceptable – calling into question large claims for gardening, cleaning, decorating and furnishing which had previously been authorised by the House of Commons fees office.

During the 2007-08 financial year, MPs claimed a total of almost £80,000 for gardening, more than £400,000 for cleaning and laundry, and £513,775 for repairs and renovations. Sir Thomas may demand that much of this money – and similar amounts from previous years – is returned.

The rules governing many of these claims are lax and subjective. They refer to not making “excessive” claims and only allowing maintenance rather than improvement of properties. The fees office applied the rules inconsistently but Sir Thomas’s team is thought to have applied private-sector style discipline to what was acceptable.

Until recently, MPs were not even required to submit receipts for less than £250 so it is far from clear how Sir Thomas will establish the legitimacy of such claims.

Claims for gardening were never formally allowed but were authorised under rules allowing the essential maintenance of properties.

Every MP who has been in Parliament during the past five years will receive a letter this week setting out the inquiry team’s “preliminary conclusions”. They will then have three weeks to provide their response and any other documentation required.

In some instances, MPs will be asked to provide further information about their mortgage claims. MPs are only allowed to claim for interest on home loans but dozens are thought to have inadvertently claimed for capital repayments.

The process is entirely separate from the police inquiries into Labour MPs Elliot Morley and David Chaytor. It is not known if Sir Thomas has referred other MPs to the police following his analysis of claims.

A report is due to be published within the next few months setting out Sir Thomas’s findings and the repayments he has demanded. This was initially expected to be in November or December although the complexity of the inquiry may mean it is delayed until the new year.

However, the indications were that many MPs may simply ignore Sir Thomas’s findings if faced with demands for large repayments.