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MP expenses report to be published

MPs are expected to lose the right to charge mortgage interest payments to the taxpayer and employ their own relatives on parliamentary expenses, under the recommendations of an eagerly-awaited report.

The report on all aspects of the House of Commons expense and allowance system is being unveiled by Sir Christopher Kelly, the chairman of sleaze watchdog the Committee on Standards in Public Life.

Prime Minister Gordon Brown has said he hopes it will draw a line under the long-running expenses scandal, replacing Westminster's discredited old allowance system with a new framework based on the principles of accountability, transparency and value for taxpayers' money.

But reports about its expected contents have suggested it will propose deep reductions in the amount of support MPs can claim, raising concerns that it might make Westminster the preserve of those wealthy enough to pay their own expenses.

The report - drawn up after an accelerated seven-month inquiry - is expected to call for an end to claims for mortgage payments, as well as a ban on the use of taxpayers' money to employ relatives and the abolition of second home allowances for MPs who live within an hour's commuting time of Westminster.

Travel, communications and food claims are also thought likely to be in line for deep cuts. The controversial £10,400 annual communications allowance is expected to be recommended for abolition.

And a "golden handshake" resettlement grant worth up to £64,766 to MPs who are defeated or retire at an election is expected to be significantly pared down.

Although all the main party leaders are committed to supporting the recommendations of Sir Christopher's Committee on Standards in Public Life - unless they are patently unreasonable - reports of the measures he is likely to propose have already sparked howls of anguish from some MPs.

Conservative MP Roger Gale said the former Whitehall mandarin was not "living in the real world", while veteran backbencher Sir Nicholas Winterton said he appeared to be "determined to hit MPs on the head and undermine them".

Sir Christopher's inquiry into the Westminster allowance system was announced in March, but it was thrust into the centre of the biggest political firestorm of recent years when the Daily Telegraph began publishing leaked details of MPs' claims in May.

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