MPs’ Expenses

I’ve shied away from this topic so far. So many of the obvious things have already been said. It’s easy to jump on the bandwagon. It’s easy to be carried along with a public tide of anger and bloodlust.

But today, I’ve caved in. The relentless daily reporting of the affair by the Telegraph has today hit on something that makes me hopping mad. It’s not another claim for cleaning a moat or a duck home, or another of life’s little essentials. No. The Chancellor of the Exchequer can’t do his own tax return. In fact, he is one of nine Cabinet members who have claimed accountancy fees back from the (now infamous) Fees Office.

Why does this touch a raw nerve with me? Because once again, they are doing something I can’t. My wife and I both have to endure the nasty process that is self-assessment of income tax. In my case, although the majority of my income is my stipend, paid through PAYE, I get the occasional (very occasional, here!) additional fees, and I can set a number of things against that as legitimate and honest business expenses. My wife is not in paid employment, but we have held onto her house, ready for retirement. In the meantime, we rent it out through a letting agent. That income has to be declared for tax purposes, and again certain things such as repairs, can be set against that income as a business expense. While she was still paying a mortgage on the property, that mortgage was not an allowable expense, even though a major reason for letting was to cover that cost.

Oh – and guess what – neither of us is allowed to claim our accountant’s fees as a business expense. Do you see why I’m angry? MPs have agreed to a system on the timeless principles of ‘One rule for you, one rule for me’; ‘Do as I say, not as I do’.

It’s not as if this is the only example. This Parliament passed legislation that made it more difficult for religious organisations to employ exclusively people of their faith. Jobs within a religious company now have to pass a ‘Genuine Occupational Requirement’ test if the organisation is to insist on employing someone who shares their faith. Guess which category of organisation was exempted from this legislation? Political parties.

So the first reason to be mad at the politicians is the old favourite of double standards. Politicians have faced a standard charge of hypocrisy for years; the expenses scandal is hard evidence. The politicians we will trust will be those who display transparency.

We also need representatives who will to some extent identify with their constituents. I do not mean that they should not receive a good income for doing a demanding and responsible job, nor that they should not be properly reimbursed for all genuine expenses, but the problem shows that several have lost touch with reality. We saw this last August when Lib Dem leader Nick Clegg announced that he and his wife were switching their shopping from Ocado to Sainsbury’s. Poor dears: they have to survive on his parliamentary salary and her pay as a lawyer. It must be tough keeping that £1.3 million house in Putney going. If this is how detached from ordinary life a party leader has become, then we’re all in trouble, and the expenses row only underlines that.

For as a Christian, I find myself using the words ‘representation’ and ‘identification’ closely. Not in a political sense,  but in talking about the life of Jesus. The incarnation and Cross both show his identification with humankind. Without them, he could not represent us and in any sense be a substitute in his atoning death. From a faith point of view, then, identification and representation have to be brought together. They have been forced wide apart in some Parliamentary circles, and the expenses stories only bring into focus an existing dangerous situation. MPs cannot truly represent us if they do not identify with us. For some, that ought to mean actually living (well, their main residences) in their constituencies. I notice in this scandal that a few don’t even do that.

But in the midst of this, something encourages me. It has been a common refrain among some of those exposed by the reporting to claim that everything they did was ‘within the rules’. I find it heartening that the public generally has not swallowed this as a reasonable defence. If the rules allowed such extravagant claims, then the rules are wrong. As I read what is going on here, the promising sign is that our society will not accept a defence on the grounds that MPs fulfilled the letter of the law. People are looking for an attitude that keeps the spirit of the law. Often I think our society is pretty sick: that strikes me as a healthy sign. If we follow this through, we shall seek not only reform of MPs but of the Fees Office, given that some have reported how it encouraged MPs to see the Additional Costs Allowance as an allowance to bolster their paltry £64,000 salary, rather than a limit of allowable expenses.

If we are to react healthily, though, we must ensure that not all MPs are tarred with same brush. Church leaders know all about that problem. To many in the outside world, I am either fleecing the flock (have they seen my tattered ten-year-old car?) or interfering with children. We have to keep level heads and not assume that ‘they are all at it’. My own MP, Simon Burns, has made large claims but nowhere has it been suggested that he has lacked integrity. (Contrast that with neighbouring MP Sir Alan Haselhurst, a deputy Speaker and possible replacement for Michael Martin as Speaker. His garden upkeep has cost £11,000.)

And integrity is a watchword for both public and Parliament at this time. Every case must be judged according to the evidence, not according to a desire for revenge or to meet a political agenda. It’s not about either party meeting a minimum standard, but longing to be the best people we can possibly be, as Rowan Williams said in a commentary in The Times.

Yet if that is to be the case, one big unanswered question for me is to wonder about the motives of the Daily Telegraph in reporting this day by day. They are known as a Conservative newspaper, yet having started by picking out Labour politicians, they have exposed Tories as well. Is that evidence of neutrality in the pursuit of truth? It would be good if it were. Is it just a professional desire to sell papers? Or is it something else? I don’t know.

However, I do notice that one MP who has been aggrieved by their coverage, the Conservative Nadine Dorries, has raised particular suspicions against the Barclay brothers who own the Telegraph. No sooner has she made allegations about them and the UK Independence Party than her blog disappears, with fingers pointed at the Telegraph. Tim Montgomerie reproduced the offending paragraph at Conservative Home on Friday. A Plaid Cymru blogger has suggested that timing is everything in this row. These expenses would have been reported publicly in July. Why report now? There are elections (including European ones) in June. If the Barclay brothers are as fiercely Eurosceptic as some have claimed, and if it’s also true they don’t consider the mainline parties Eurosceptic enough, you can see why Dorries would make her point about securing support for UKIP or the evil BNP. Certainly there has been widespread opinion expressed that disgust at the expenses scandal will lead to protest votes in favour of the smaller parties.

(In this respect, mainstream politicians should take comfort both from Rowan Williams’ Times article linked to above, where he calls us to move on, and his joint statement with John Sentamu, where he urges people not to vote for the BNP. And – in case you hadn’t gathered by now – I refuse to link to the BNP.)

Whether Dorries is right, I do not know. It is all based on circumstantial evidence, and I don’t really buy the shtick that used to appear on her blog along the lines of “I’m just a Scouser” or “I’m just a former nurse”. If that were all she were, she wouldn’t have made it to Parliament. Will she end up on Celebrity Big Brother? But for so long as the Telegraph and the Barclay brothers stay mum, suspicions will remain. The Telegraph is right to call for transparency from MPs, but that means it should itself be transparent.

Which means there is a right and proper place in this debate to consider not only the integrity of MPs and – as I have argued – the public, but also of the press. A fortnight ago, Bishop Nick Baines called for journalists to reveal their expenses, receipts and diary records. He said:

They might not be ‘public servants’, paid from the public purse, but they wield enormous power and don’t usually disclose their influences.

Don’t hold your breath.

And he has a point. It’s the integrity question again. If you accuse somebody of a misdemeanour, you’d better be sure you’re not guilty of it yourself. It has been only too easy, as I’ve shown above, to establish a case that some MPs have behaved hypocritically. Unpopular as it may seem, then, a Christian message at this time is not only to denounce injustice, but for all parties (not just political ones) to examine themselves. Logs and specks in the eye, that sort of thing. ‘Lord, have mercy on me, a sinner’ should be central in all our thinking at all times, but especially now.

UPDATE, Tuesday 26th May: I now gather that Nadine Dorries’ blog is back, minus the controversial post. Thanks to David Keen. She remains deeply critical of the Telegraph, and not just from her own personal experience. However, the more this particular individual incident goes on, the more you wonder whether the Barclay brothers are aping Mark Brewer and Nadine Dorries gets the Dave Walker rôle.

UPDATE #2, Wednesday 27th May: The BBC reports this morning that HM Revenue and Customs are to investigate those ministers who claimed personal accounting costs against tax, to see whether the law has been broken.

A Revenue and Customs spokesman told the BBC: “It’s a general principle of tax law that accountancy fees incurred in connection with the completion of a personal tax return are not deductible.

“This is because the costs of complying with the law are not an allowable expense against tax. This rule applies across the board.”

Exactly what I was saying above.

Furthermore, David Grossman of the BBC television programme Newsnight undertook some investigations. One quote from the piece regarding his work:

Mr Grossman said representatives of Foreign Secretary David Miliband had given a “confused” reply to the claims.

It suggested that because he had paid accountancy fees out of his taxed income, before receiving the money back from the Commons authorities, “there was no liablility”.

“We put that point of view to a tax economist who, quite frankly, just laughed,” Mr Grossman added.

It stinks.