Former city council leader backs Clare Short in expenses row

May 16 2009 by William Oliphant, Birmingham Mail

“It’s not as if she was acting like some of the other MPs and making remedial payments now after they have been found out. In her case she made the payments back well in advance of this coming into the public light.”

Under House of Commons rules, MPs are allowed to claim back some of the cost of a second home if they have a property in their constituency and another in London.

But the error occurred after she exchanged an interest-only mortgage for a standard mortgage, in which she re-paid the capital cost of the property as well as the interest. This meant the amount she was allowed to reclaim from the taxpayer fell. But Ms Short continued to claim the same amount, which meant she received more than she was entitled to.

n A panel of senior Scotland Yard officers and prosecutors will meet next week to decide what action to take over claims MPs misused parliamentary expenses.

Officials will assess whether criminal inquiries are necessary in the wake of a surge in the number of complaints from members of the public.

Metropolitan Police Commissioner Sir Paul Stephenson and Director of Public Prosecutions Keir Starmer decided to establish the panel, a spokesman said.