A widespread public reaction was heightened as a result of several factors: the incident broke in the face of an
economic recession and financial crisis, under an already unpopular government, only weeks before the
2009 European Parliament elections.
Political response Following the publication of expenses politicians from all parties responded to the controversy. •
Gordon Brown, the Prime Minister, during a speech to the
Royal College of Nursing Conference on 11 May, apologised "on behalf of all politicians" for the expenses claims that had been made. •
David Cameron, the Leader of the Opposition, said that all MPs should apologise for the expenses scandal, shortly after the
Telegraph published the claims of members of the Shadow Cabinet. Cameron also admitted that the existing system "was wrong and we're sorry about it". The following day, 12 May, Cameron said that some of the claims made were "unethical and wrong", and imposed new rules on what Conservative MPs could claim for in the future. • In the aftermath of the Speaker's statement to MPs, questions were widely raised regarding Martin's future in the job, largely due to his focusing on the actual leak of information, rather than the expenses themselves, and due to his response to the
point of order raised by the Labour MP
Kate Hoey, who suggested that the Speaker and Commons' decision to call in the police was "an awful waste of resources". A Conservative MP,
Douglas Carswell, subsequently announced that he planned to table a
motion of no confidence in the Speaker, if he could garner sufficient support. •
Harriet Harman, the
Leader of the House of Commons, asked
Don Touhig, the Chairman of the Members' Allowance Committee, to devise a method for MPs to repay any excessive expenses. •
Ben Bradshaw,
Minister of State in the
Department of Health, raised the spectre of MPs being sent to prison for abusing the expenses system. •
William Hague,
Shadow Foreign Secretary and a senior member of the Shadow Cabinet (Deputy to party leader
David Cameron), also suggested that a number of MPs may face criminal prosecution after details of their claims were disclosed. •
Lord Foulkes, when being interviewed for
BBC News by
Carrie Gracie to defend Michael Martin, asked Gracie how much money she earned. When she said she earned £92,000, Foulkes said: "£92,000? So you're paid nearly twice as much as an MP to come on and talk this nonsense." Gracie defended herself by saying that she paid for all of her phone calls and "understood what public sector money is about". •
Anthony Steen, Conservative MP for Totnes, told
BBC Radio 4's
The World at One that he 'didn't see what all the fuss is about,' and suggested that the public were 'jealous' of his house that he compared to
Balmoral Castle, a royal residence in Scotland.
David Cameron, Conservative party leader, disapproved strongly of his statement, saying, 'One more squeak like that and he will have the whip taken away from him so fast his feet won't touch the ground.'. As a result of his involvement in the scandal, he declined to contest the next general election.
Resignations and disciplinary action Resignation of the Speaker The resignation of
Michael Martin,
Speaker of the House of Commons, followed after he was pressured to step down for approving the allowances system that MPs have manipulated with questionable claims of expenses. The pressure and viable threats of a proposed vote of no confidence in Martin ultimately forced his resignation. Michael Martin's response to the handling of the expense crisis was not well received by the majority of the House. He attacked MPs in Parliament who defended
The Daily Telegraph for publishing details of expenses and allowances. Martin then concluded his part in the debate over how to handle the expense scandal, by announcing that the Commons clerk had referred the matter of the leaked information to the Metropolitan Police Commissioner. Overall, Martin appeared to be more concerned with the nature of the leak of the information, which led to the
Telegraph's publishing details of MPs' expenses and allowances, rather than offering an anticipated apology or explanation. The majority of the MPs felt Martin's defensive approach and attacks on various MPs as whistleblowers and the backbenchers was a clear indication that Martin was no longer able to lead the House with the required impartiality. MPs from his own majority party, Labour, and the minority opposition party, the Conservatives, felt he had lost the confidence of the public and the House in general. Martin was the first Speaker to be forced out of the office by a motion of no confidence since
John Trevor in 1695. Despite apologising to the public on behalf of the House of Commons on 18 May, Martin announced his resignation as Speaker of the House of Commons and as Member of Parliament for
Glasgow North East the following day, both effective 21 June.
Cabinet and Ministerial resignations •
Jacqui Smith announced that she would step down as
Home Secretary after the European elections, but would contest her seat at the next election. She lost her seat to a Conservative. •
Hazel Blears announced on 3 June that she would step down as
Secretary of State for Communities and Local Government. •
Tony McNulty resigned from his position as
Minister for Employment during the
cabinet reshuffle on 5 June 2009. He lost his seat at the subsequent general election. •
Geoff Hoon left his position as
Secretary of State for Transport during the cabinet reshuffle on 5 June 2009, in order for him to spend more time on European and international issues with him being considered a possible candidate as the next British member of the
European Commission. He did not stand at the 2010 election. •
Kitty Ussher resigned as
Exchequer Secretary to the Treasury on 17 June, after only 8 days in the position, following details of avoiding capital gains tax being published. She did not stand at the 2010 election. •
David Laws was the last to resign from the cabinet for expenses related issues, one year after the other cabinet resignations. A Liberal Democrat frontbencher appointed to the position of
Chief Secretary to the Treasury following the
2010 general election, he resigned 16 days later when the
Telegraph reported that he had claimed over £40,000 on his expenses in the form of second home costs, from 2004 to late 2009, during which time he had been renting rooms at properties owned by his long-term partner, James Lundie.
Labour backbenchers The Labour Party formed a three-person panel of its
National Executive Committee (NEC) in order to investigate some of its MPs who were referred to it over expenses allegations, which quickly became known as the "
Star Chamber" (a reference to the court of the same name employed by
English monarchs to dispense summary justice in the 16th and 17th centuries). Individual cases (in alphabetical order) include: •
Ben Chapman announced on 21 May 2009 that he would stand down at the next election, while maintaining that he had done nothing wrong; he said he would resign because the story in the
Telegraph had been hurtful to his family, friends and local party members. He was the first Labour MP who announced he would stand down. •
David Chaytor announced that he would not stand for re-election, and was also barred from standing for Labour at the next general election. on 3 December 2010 he pleaded guilty to claiming rent for a house he in fact owned, using a fake tenancy agreement with his daughter. He was sentenced on 7 January 2011 to an 18-month jail sentence. His sentence may have been more lenient than the maximum seven years because of his guilty plea. •
Harry Cohen announced he would not stand for re-election. He said the strain caused by the criticism over his expenses, and the formal investigation into his claims, were the main factors behind his departure. He was subsequently barred from receiving his MP's resettlement grant, after being censured for his claims on a second home. •
Jim Devine was deselected on 16 June following a disciplinary hearing by the Labour party "star chamber". He had been charged with two alleged offences under section 17 of the Theft Act 1968 ("false accounting"). •
Ian Gibson was also barred from representing Labour at the next general election and de-selected. He was said to be "deeply disappointed". •
Eric Illsley on 8 February 2011, announced his
resignation as an MP, forcing a
by-election to be held in his
Barnsley Central constituency, after pleading guilty to charges of false accounting. He was later jailed. •
Denis MacShane on 5 November 2012, announced his
resignation as an MP, forcing a
by-election to be held in his
Rotherham constituency, following a recommendation from the
Standards and Privileges Committee that he be suspended for 12 months for submitting false expenses invoices. He was later jailed. •
Anne Moffat on 22 January 2010, Moffat was deselected by her East Lothian constituency party, over her travel expenses. •
Margaret Moran decided not to contest the next election, and was also barred from standing for Labour. On 13 October 2010, the
Telegraph reported that Moran would be prosecuted over her expenses. In 2012, Moran was declared unfit to stand trial due her mental health, which was profoundly affected by the scandal. •
Elliot Morley announced on 29 May that he would not stand for re-election, and was also barred from standing for Labour at the next general election by the NEC's "star chamber".
Conservatives • On 14 May,
Andrew MacKay, the Conservative MP for
Bracknell, resigned as parliamentary aide to
David Cameron over what he described as "unacceptable" expenses claims made by him. Subsequently, he decided to stand down at the
next general election. His wife,
Julie Kirkbride, who represented
Bromsgrove, decided on 28 May 2009 that she too would not stand at the next general election. •
Douglas Hogg announced on 19 May that he would retire from Parliament at the next general election. •
Anthony Steen announced on 20 May that he would retire from Parliament at the next general election. •
Sir Peter Viggers announced on 20 May that he would retire from Parliament at the next general election. • Husband and wife Conservative backbenchers
Sir Nicholas and
Lady Ann Winterton announced their intention to stand down at the next election. •
Christopher Fraser stated he would stand down to "care for his ill wife". •
Ian Taylor announced he would retire at the next general election although not because of the expenses issue (see link below). He had been claiming and had openly declared the maximum allowed for a second home allowance for a London home for four years between 2003 and 2008. His main residence was near
Guildford in
West Horsley.
Peers •
Amir Bhatia, Baron Bhatia was suspended from the House of Lords for eight months and told to repay £27,446. •
Tony Clarke, Baron Clarke of Hampstead admitted that he "fiddled" his expenses to make up for not being paid a salary. •
Paul White, Baron Hanningfield was charged with two alleged offences under section 17 of the
Theft Act 1968 ("false accounting"). He stepped down from his
frontbench role on learning of the charges on 5 February 2010. On 26 May 2011, Lord Hanningfield was found guilty on six counts, and on 1 July 2011, was sentenced to 9 months' imprisonment. •
Swraj Paul, Baron Paul was suspended from the House of Lords for four months and ordered to pay back £41,982. •
Glenys Thornton, Baroness Thornton has also been implicated in this controversy, having been reported to be claiming £22,000 a year in expenses by saying that her mother's bungalow in Yorkshire is her main home, amounting to around £130,000 since 2002. She was later cleared of any wrongdoing by
Michael Pownall, the
Clerk of Parliaments, after it was determined that she spent much of her time there while caring for her mother. •
Pola Uddin, Baroness Uddin faced a police investigation for alleged fraud for claiming at least £180,000 in expenses by designating an empty flat, and previously an allegedly non-existent property as her main residence. She was suspended from the House of Lords until the end of 2012 and told to repay £125,349.
Creation of the Independent Parliamentary Standards Authority (IPSA) On 20 May 2009
Harriet Harman announced the creation of the
Independent Parliamentary Standards Authority, intended to manage Members' expenses at an "arm's length" from the House, ending the historical self-policing by MPs of their expenses. The IPSA will be responsible for: paying MPs' annual salaries; drawing up, reviewing, and administering an MPs' allowances scheme; providing MPs with publicly available information relating to taxation issues; preparing the MPs' code of conduct relating to financial interests; and determining the procedures for investigations and complaints relating to MPs. Henceforth, there will therefore be two codes of conduct for MPs to follow: a non-statutory code drawn up by the House of Commons itself; and a statutory code drawn up by the IPSA. The IPSA will take over some of the functions previously undertaken by the Fees Office. It will not, however, determine the level of MPs' pay. That will remain a matter for the Senior Salaries Review Body which annually informs the Speaker of the House of Commons of the percentage increase to be awarded to MPs.
Criticism of the Independent Parliamentary Standards Authority (IPSA) The
Independent Parliamentary Standards Authority (IPSA) has been
criticised for severely complicating the expenses claims process for MPs and their staff. Former Member of Parliament
Paul Flynn recalled his experiences with IPSA upon its creation: "A monthly thirty-minute chore was complicated by ISPA into endless hours of tedious frustrating trawling through a bureaucratic morass of irrational rules" and he believed, "A simple five-part claims system was atomised into a hundred headings and sub-headings".
Surge in independent candidates A surge in proposed
independent candidates and enhanced profile of
minority parties were noted in the press. In various cases these candidates stood in recognition of the loss of public goodwill suffered by established MPs and parties, and proposed to stand on "clean slate" or anti-sleaze platforms. In the immediate aftermath of the revelations, a
Populus survey said that only 45% of people were committed to voting in the
next general election (although 54% said they wanted an election as soon as possible), which had fallen by around a quarter since before the disclosures began. The Conservatives still maintained their
lead over Labour, but support for the BNP was up. The poll showed that 19% of voters were prepared to vote outside of the main three parties, with the
British National Party,
Green Party of England and Wales, and
UK Independence Party also hoping to capitalise, and was particularly pertinent because of the
subsequent European Parliament election.
Effect on MPs and on the political structure The expenses disclosures were published over an extended period of time, with the focus moving to different MPs daily. As a result, there was significant
pressure on MPs who did not know whether, and for what, they would be discussed, as well as a general deepening hostility that grew over a relatively long period. On 22 May 2009
Nadine Dorries, the Conservative MP for
Mid Bedfordshire went on record in saying that many of her colleagues "feared a suicide" and that MPs were "beginning to crack". She likened the atmosphere in
Westminster to that surrounding Senator
Joseph McCarthy's "witch hunts" of suspected Communists during the 1950s. The comment led to a forceful rebuke by Conservative leader
David Cameron, who stated that the anger and mood were warranted and that MPs should be more concerned about what the public were thinking. On 23 May 2009 the
Archbishop of Canterbury Rowan Williams warned about the potential effect of the controversy on the democratic process, and that "the continuing systematic humiliation of politicians itself threatens to carry a heavy price in terms of our ability to salvage some confidence in our democracy." On the same day writing in The Times, columnist and former MP
Matthew Parris reflected that "extravagance, genuine mistake, sly acquisitiveness and outright criminal fraud are now jumbled together in the national mind as though there were no moral differences". On 11 June 2009 ex-communities secretary
Hazel Blears, who chose to resign from the government just before the English county council and European elections, said that she regretted the timing of her decision. She also stated that her decision to wear a brooch with the words 'rocking the boat' on the same day as the resignation was a "stupid thing to do". Speaking to the
Manchester Evening News she said of the brooch "It was a brooch my husband had given me. I'd had four weeks of intense media pressure, the like of which I have never known, not just on me but on my husband, my dad, my family. At that point I'd had enough. It was a stupid thing to do but I think it was just trying to put a brave face on—not going out cowed on the basis of expenses claims that genuinely are not true." 74 MPs
lost their seats in the
2010 general election.
Reform proposals On 25 May 2009, Health Secretary
Alan Johnson (seen as a possible candidate for Labour leadership) stated that one response to the controversy should be a full review of the electoral and political system. He proposed as part of this, a referendum on changing the electoral system to
Alternative vote plus.
David Cameron, the Conservative Party leader of the opposition, set out his proposal for reform in
The Guardian. He proposed strengthening the power of backbenchers over the government, and other measures as part of 'a radical redistribution of power'. Writing in
The Guardian on 27 May 2009,
Liberal Democrat leader
Nick Clegg suggested cancelling MPs holidays until 'the constitutional crisis sparked by the row over expenses is resolved'. Setting out a week by week plan, Clegg made wide-ranging proposals, from placing a cap on individual donations to political parties, to replacing the House of Lords with an elected
Senate, to allowing a
referendum on
electoral reform. The major political parties and some minority parties (not UKIP) have stated they will publicly disclose information on expenses claims by UK
Members of the European Parliament. The proposed disclosures vary between parties. A study of the possible influence of the voting system on MPs behaviour concluded that those MPs with the safest seats were twice as likely as those with the most marginal seats to be involved in the expenses row. ==Police and tax authority responses==