Independent Parliamentary Standards Authority

Edward Leigh Excerpts

Thursday 2nd December 2010 Commons Chamber

[Adam Afriyie]

Exactly that debate was had in 1911. After the Osborne judgment, Labour Members could no longer be funded by the unions, which meant, in effect, that they were destitute. Then, in 1911, a flat rate—a beautifully simple Members’ allowance— was introduced at £400 a year. Members were told: “There you go. This is not a salary, a remuneration, a reimbursement of expenses or a payment in kind for services; it is merely an allowance that recognises that there are costs associated with being here, and Members are trusted to organise their lives in the way that is necessary.”

One cannot second-guess and legislate for the topography of every seat or the lifestyles—the changing lifestyles—of every MP, or for the reproduction rates of MPs: we are now on our fifth. One cannot create a system that takes into account whether the trains are working or whether it is going to snow and being told only at 5 o’clock in the evening. There is no way that the route that IPSA is currently pursuing will satisfy the needs of the public to have a Parliament that functions effectively.

[Mr Edward Leigh (Gainsborough) (Con)]

So why not go back to a simple flat-rate allowance for everybody?

[Adam Afriyie]

The Parliamentary Standards (Amendment) Bill, which will appear on tomorrow’s Order Paper—of course, I do not know what is going to happen to it—says that that is exactly what we ought to do, because it would save the taxpayer money and give MPs time to serve their constituents. That proposal is not directly related to the motion, but I just point it out. It would take courage to enact such a simple, straightforward scheme, and I urge IPSA to have the courage to do so. There is nothing more transparent than a flat-rate Members’ allowance: everyone can see what it is and everyone can see that every MP gets the same thing.

The current system causes inconvenience and makes things very difficult for Members with families and Members who are less well-off. It also causes problems, because Members are not making claims. Looking back at this year, and certainly over the past six months, I know that virtually every one of my colleagues—I have spoken to 350 MPs one-to-one—has not made the claims that they are entitled to make. That may be seen externally as a great success—“Look, IPSA has crushed the MPs, and they cost far less!”—but we all know that that is not the situation. We know that Members are borrowing from their parents, having to borrow cars from friends, and still sleeping on floors of offices, which they are not supposed to do, because they are not claiming what they rightfully should be able to claim. It is not a good situation.

However, I am not moaning on behalf of existing MPs. I love all the MPs here, but I am not whingeing on their behalf. What I am concerned about is the functioning of Parliament for the next 100 years. Where will we be in 30 years’ time if we continue down this route where only the wealthy can serve? That is where we were before; I thought we had moved on. IPSA, I hope you are listening.

--- Later in debate ---

[Mr Edward Leigh (Gainsborough) (Con)]

As one of the last Back Benchers to speak, I hope that I can say that we have had a good debate. Everyone has said their piece and made a valuable contribution, including the hon. Member for Bassetlaw (John Mann), who is fast becoming a national treasure. If he was not there, he would have to be invented, because his arguments have to be listened to.

The fact is—there is no doubt about it—that we cocked up the system. The thing collapsed, and we have a system that we all know is not working, and that is hugely complex and massively bureaucratic. Above all, it is costing the taxpayer more money—namely £10,000 to administer it before any money is handed out. We are only a small body—a medium-sized company of 600 people—and if this was the private sector, there would be a little accounts department run by half a dozen people. We do not need this vast bureaucracy, so in the few minutes I have to speak, I shall offer a simple solution.

I make no criticism of the staff. As I am pretty hopeless with computers, a very nice young man from IPSA sat next to me last week for two and a half hours while, with two fingers, I tried to claim for about five journeys. My criticism is not of the young people who work in IPSA, but of our Front Benchers, and particularly the three party leaders who got into a bidding war last year and landed us with this mess. By the way, thank God they are backing out of this and leaving it to Back Benchers, because this is a Back-Bench affair—it is nothing to do with Front Benchers. My criticism is also of Sir Ian Kennedy who, with his board, seems to have no conception of how Parliament is run.

My first guiding principle is that the electors want complete transparency, yet we have created a system that is so complex and bureaucratic that it is too expensive to publish receipts that were sought in the first place. It is Kafkaesque. My second guiding principle is that the system should cost the taxpayer less, but this is costing the taxpayer more, so no one is happy—what are we gaining?

There is something of the biter bit here, because for years we have created ever-more complex social security systems to try to regulate people’s behaviour. That resulted in massive fraud and error in the Department for Work and Pensions, and now it has come here. Perhaps it is time for us to try to create simpler systems throughout the civil service. That is why I have always argued for a simple system of no-fraud, no-error child benefit—a flat-rate benefit.

We should have a simple, flat-rate allowance like the old London costs allowance, because every single Member of Parliament has to live in London. I say to the hon. Member for Bassetlaw and others that it is not for us to determine what that should be—it would be for an independent body. I would be out of pocket under such a system because, unlike my hon. Friend the Member for Cities of London and Westminster (Mr Field), I need a home in my north Lincolnshire constituency, which is three and a half hours away, as well as a home here, but we all know that the secret of happiness is not to compare oneself to others. Let us have the same allowance for every Member of Parliament.

[Duncan Hames]

Will the hon. Gentleman give way?

[Mr Leigh]

I cannot give way because I have been told that I have only three or four minutes.

Such a flat-rate allowance should be taxable so that the Inland Revenue is not involved. There would be no fraud, no possibility of error and no receipts. Every Member of Parliament would get the same.

What we have at the moment is fundamentally anti-family. When my predecessor came to the House, he virtually had to buy his seat, and when he left Newark station, the station master would say to him, “When will your next annual visit be, sir?” Over the past 30 or 40 years, we have created a system in which ordinary people with no private means—people such as me, who have been full-time Members of Parliament for all that time—have been able to devote themselves to public affairs. I am sorry to get personal, but for 27 years I have carted my family up and down the A1 for three and a half and hours in either direction. I have created a small family home in Lincolnshire, and a family home in London. Surely we should allow people to preserve that sort of lifestyle.

We are all different—some people have big families, others have small families; some have old families, some have young families—but we need a system of allowances, which I think should be set at a flat rate, and pay that allows ordinary people with no private resources to come to the House and to serve the public. That is all we want to do; nobody comes here to make money or to get rich. We just want to serve the public. We love Parliament, but surely we have to be allowed to do our job and stay with our families. This place should not become the preserve of the rich, as it used to be 30 or 40 years ago. So, away with all this complexity! Away with all this bureaucracy! Just give MPs a decent salary. Every member of the public I speak to says the same. They are sick and tired of this debate; let us end it now.