Latest news with #IPSA
The National
2 days ago
- Business
- The National
Scottish MPs panned over up to £3500 a month taxpayer-funded homes
Tenants union Living Rent have branded it 'shocking'. According to Independent Parliamentary Standards Authority data, Scottish Labour MP for Glasgow East John Grady is spending the most on rent at £3500 a month. His fellow Scottish Labour colleague, Dunfermline and Dollar MP Graeme Downie, is paying (and expensing) a hefty £3350 a month. READ MORE: Border checks on fruit and vegetable imports from EU scrapped Meanwhile, Scottish Labour MP for Bathgate and Linlithgow Kirsteen Sullivan is paying £3250 a month. Rounding out the top 5 are Scotland Office minister Kirsty McNeill and SNP MP Kirsty Blackman on £3200 a month. (Image: Image of John Grady by Colin Mearns, Newsquest)MPs are allowed to expense the costs of a second property to either have a base in their constituency or somewhere to stay when they travel to parliament, if their seat is outside of London. They can also claim up to £230 a night for hotel stays. But Aditi Jehangir, the chair of Living Rent, hit out at the amounts some are claiming. The average rent in London for a one-bedroom flat is £1500 according to the City of London, although that can vary depending on which borough. Although, even for the most prestigious areas in London, including Westminster, the average still sits around £2500 a month. Properties you can rent in London for £3500 a month include a 'stylish Manhattan-inspired apartment' near Waterloo station. According to the listing, it offers a "luxurious lifestyle with hotel-like amenities", including a 20-metre swimming pool, private screening room, executive lounge, golf simulator, wine cellar and thermal suite facilities. It could also secure a 'very spacious' four bedroom apartment in a mansion block close to the O2. "It's shocking to see Scottish MPs spending so much of taxpayers' money on renting second homes for themselves, while refusing to support rent controls for their constituents,' Jehangir told The National. (Image: AFP/Getty Images) 'Rents across the UK are skyrocketing to extreme, unaffordable levels, plunging tenants into poverty and pushing us out of our homes.' She added: 'Rather than fighting for a system that works for everyone, they are happy to claim back thousands of pounds in expenses and fob tenants off with distant promises of new builds instead of reigning in landlords' profits. 'MPs pay lip service to the housing crisis, but when it comes to their own expensive rents, it is taxpayers who foot the bill." A Scottish Labour spokesperson said: 'It is right that the rules around MPs' expenses are set and administered independently by the Parliamentary watchdog IPSA. All claims have been made in line with IPSA rules." The lowest claimants, in terms of rent at least, include Scottish Labour MPs Melanie Ward and Gordon McKee, who claimed £680 and £1365 a month respectively.
Irish Independent
5 days ago
- Business
- Irish Independent
Government urged to end to tax barriers of moving companies into employee ownership
IPSA has long argued the current tax structures represent an obstacle for business owners seeking to move their company to employee ownership through Employee Ownership Trusts (EOT). The group has called for Ireland to replicate the EOT model in the UK, where there has been significant uptake through a generous relief on Capital Gains Tax (CGT). The group recently met with officials at the Department of Finance and is calling for targeted reforms to reduce the 'tax obstacles' for EOTs in Budget 2026. It hopes reforms will incentivise succession planning through broader use of the trusts and, ultimately, protect jobs at companies that could otherwise be dismantled after a sale. Marie Flynn, chairperson of IPSA, said gaining political engagement on EOTs was a priority for the organisation. 'It is crucial for convincing the Government to follow the advice of the 2024 Indecon Review to reform the taxation of EOTs in Ireland so that business owners and employees can benefit from an economic model that has proven popular and successful in the UK, US, Australia and Canada.' Flynn said that when owners look to exit their business, sale options typically include trade buyers, private equity firms or the next generation in the family. A third-party sale usually attracts CGT of 33pc. However, with EOTs, there are question marks over whether selling shares to such a trust would just attract CGT. Due to what Flynn called 'unhelpful anti-avoidance legislation', the tax bill when someone sells to an EOT in Ireland could hit as high as 55pc. Flynn added that EOTs are considered 'discretionary trusts' and attract a tax that kicks in when the person who sold their shares to it dies. This means a 6pc tax charge is placed on the trust, with a 1pc levy applied yearly. IPSA wants the Government to remove these tax obstacles through a mix of Revenue guidance and an exemption from the discretionary trust tax regime for EOTs. IPSA calculates that this would result in no revenue loss from 'levelling the playing field.' IPSA's plan also includes the Government implementing a recommendation in the 2024 Indecon review to reform the taxation of Irish EOTs in line with their treatment in the UK. Business owners in the UK have relief from CGT on selling a controlling, or 100pc, stake to an EOT. ADVERTISEMENT Flynn said there was massive potential for EOTs in Ireland. She believed several hundred companies could become employee-owned over the next number of years should the Government support it. An EOT is a trust that enables a company to become owned by its employees. It can be set up by a company's existing owners as part of their exit or succession planning strategy. Founders starting a new business can also set one up if they wish to be employee-owned. IPSA argues that EOTs would benefit Ireland as their wider use would help secure workers' jobs and ensure a company remains in its community. It argues that sales to a competitor can often result in businesses being dismantled or relocated, with an accompanying loss of jobs.
The National
6 days ago
- Business
- The National
What did your MP claim in expenses? See the full Scottish list here
The MPs claimed for a range of expenses – from rent and office costs to travel and royal mail postage – totalling £1,429,649 since July 5 2024, according to an analysis of Independent Parliamentary Standards Authority data. Nearly half of the claims, or £670,919, were for office-related costs, including rent, utilities and equipment. Even more, or £703,285, was claimed for accommodation-related expenses including hotel stays and rent. READ MORE: 'It's just great': Japan ambassador tries Irn-Bru on visit to whisky distillery The MP with the highest total of claims was Labour MP for Dunfermline and Dollar Graeme Downie. Downie's claims totalled £44,875, the bulk of which went towards rent – a hefty £3350 a month for accommodation. This was on the upper end of MP spend on rent, although Labour MP for Glasgow East John Grady spends the most at £3500. (Image: Roger Harris) Downie (above) also opted for pricier office furniture than most, including £1880 for four desks. The MP who claimed the second most is Labour MP for Edinburgh East and Musselburgh Chris Murray, who expensed £41,704. A large portion of this came from one expense – £15,000 for 'constituency office renovations'. This was the highest single expense logged by all MPs since last July, followed by £10,000 claimed by Labour MP Melanie Ward for a 'policy and office set up consultant' and £8482 claimed by her colleague Lillian Jones for 'internal office reconfiguration/partition works to facilitate functioning working space'. The third largest claimant is Labour MP for Ayr, Carrick and Cumnock Elaine Stewart at £40264. This was mostly on rent but also £2534 for 'mobile telephone - equipment purchase'. A full list of the top 10 MP claimants is below. A Scottish Labour Spokesperson said: 'It is right that the rules around MPs' expenses are set and administered independently by the Parliamentary watchdog IPSA. All claims have been made in line with IPSA rules." Some MPs were reimbursed for as little as between 10 and 20p for the printing of banners, including Labour MPs Katrina Murray, Martin Rhodes, Michael Shanks and Kirsteen Sullivan. Labour MP for Livingston Gregor Poynton, meanwhile, expensed 85p for a marker pen. Some miscellaneous claims include SNP MP Seamus Logan claiming £63 for 18 copies of 'Fishing News'. Labour MP for Hamilton and Clyde Valley Imogen Walker, meanwhile, paid and claimed £20.98 under 'office costs' from what appears to be a baby clothes store in her constituency called Little Angels. Labour MP John Grady, meanwhile, expensed £134.98 for an office fridge and microwave but then specified in the description: 'I have not claimed for the toastie maker.' While Labour MPs dominate the top of the table, Scottish Tory MPs expensed the most on average at £27529. This was followed by SNP MPs at an average of £26762. Labour MPs expensed £24487, aided by MPs such as Zubir Ahmed who expensed the least of all MPs at £3832. Lib Dem MPs expensed the least on average at £24189. A full list of all of Scotland's 57 MPs and how much they have expensed since last July's General Election can be found below.
Telegraph
05-05-2025
- Business
- Telegraph
Taxpayers' money spent on renting constituency offices from Labour
Taxpayers' money is being spent on renting offices from the Labour Party. Twelve Labour MPs including Ellie Reeves, the Labour chairman, have constituency offices in buildings owned by Labour. In total, more than £1.1 million has been spent by the taxpayer on rent for these 12 properties since 2010. Dame Emily Thornberry, the former shadow attorney general, has claimed the most from the taxpayer in that period: £263,983 for her constituency office in Islington, north London, according to Independent Parliamentary Standards Authority (IPSA) filings. Labour Party Nominees Ltd bought the building in 1992 for an undisclosed amount. Ms Reeves claims almost £16,000 a year in expenses for rent on her Lewisham office, which has been owned by the Labour Party since 2007. In most cases, MPs are leasing offices in buildings that the Labour Party owns outright, meaning that the money they claim on expenses is not needed to service a mortgage. The Labour Party has two companies that are listed as the owners of at least 80 properties across the UK. The Telegraph understands that one of these – Labour Party Nominees Ltd – owns a number of MPs' constituency offices, but does not receive the rental income. Instead, the company licences the buildings to constituency Labour parties, organisations made up of Labour Party members, and they receive the rental income from the MPs. MPs also rent from Tory Party Some high-profile Conservative MPs are also renting from their local party, including Kemi Badenoch. The party leader claimed more than £11,000 in rent from the taxpayer for her office in Saffron Walden. The Telegraph understands that an independent valuation was recently carried out. Suella Braverman, the former home secretary, has claimed more than £49,000 since 2015 to pay for an office that is owned by the trustees of the Fareham Conservative Association. MPs are allowed to rent offices from political parties under Parliamentary rules. However, their contracts are subject to a formal valuation of the market rate by the IPSA, which MPs must stick to. When approached by the Telegraph the regulator refused to reveal when it last carried out valuations for these offices. Campaigners branded the practice 'extremely questionable' and called for an overhaul of the Parliamentary rules which allow it. John O'Connell, the chief executive of the TaxPayers' Alliance, said: 'Whether or not this is in breach of any rules, this is an extremely questionable practice given it essentially funnels taxpayer cash into political parties. 'IPSA should consider new rules which clearly state that spaces should not be rented from political parties.' Numbers involved unclear This landlord relationship between MPs and their parties is often opaque because many parliamentarians do not publish the address of their constituency office, citing security concerns. As a result, it is unclear how many MPs are funnelling taxpayers' money to their local parties. Most of the premises in question are in buildings that are already used as political party offices, and have very prominent signage likely to diminish their value to other potential tenants. Andy Slaughter, the MP for Hammersmith and Chiswick, charges the taxpayer £10,875 a year for an office in a Labour Party office building painted red, with a large Labour sign on the outside of the building. Mr Slaughter said he had looked at alternative options for an office and the rent was 'substantially more expensive'. He added that the rent had not increased for a number of years 'and therefore represents a significantly lower cost than market rental'. A Labour Party spokesman said: 'All Labour MPs' constituency offices are rented in full compliance with the rules set out by the independent Parliamentary watchdog, IPSA. The suggestion that the Labour Party is profiting from MPs' rent expenses is categorically incorrect. 'The value of the rent paid by MPs is rightly overseen by IPSA, who ensure that rent does not exceed fair market value through independent valuation of contracts.' A Conservative Party spokesman said: 'This is entirely in keeping with the rules set out by the IPSA, and is all transparently and properly declared.'
Euronews
31-03-2025
- Business
- Euronews
Controversy sparked by UK politician's 'pet rent' expense claim
ADVERTISEMENT A senior politician from the UK's governing Labour party has sparked controversy after claiming €1,076 (£900) in expenses for "pet rent". Taiwo Owatemi, who is a member of parliament (MP) for the Coventry North West constituency, had to pay the surcharge so that her cockapoo Bella could stay with her in her London flat. Although the politician broke no rules over the pet surcharge, her own party has said the guidelines should now be changed. Security minister Dan Jarvis told broadcaster LBC that Owatemi had done nothing wrong, but said he would not have filed the same expense claim. "I think it can't be right that the rules allow any member of parliament to do that," said Jarvis. "The government will be making representations to IPSA, the Independent Parliamentary Standards Authority, to ask them to look very carefully at the detail of this particular rule," he added. British politicians who represent a constituency outside of London are allowed to rent a property in the capital, so that they can attend the House of Commons during the week. IPSA, the independent body which oversees politicians' expenses, told Euronews it was common for landlords to charge rent surcharges, adding that it had given Owatemi "incorrect advice" on how she should describe the cost that caused the backlash. "We have apologised directly to the MP and are sorry for any confusion," IPSA told Euronews, referring to Owatemi. Related UK PM Starmer announces major healthcare reform as public sector cuts take shape The body also said it was "committed to supporting a parliament where people without the private finances to fund working from two locations themselves are not prevented from becoming an MP". The controversy over the "pet rent" expense claim came just days after the British government announced sharp cuts to the welfare system. UK politicians are set to earn an annual salary of €112,284 (£93,904) after a recent pay rise.
