MPs: We want £40,000 a year pay rise

Many were pressing for a rise of up to £40,000 a year to take their annual salaries to around £100,000 after details of a crackdown on the discredited Parliamentary allowance system were unveiled.

And Westminster sleaze watchdog Sir Christopher Kelly – who yesterday published his blueprint for stamping out “deplorable” expenses abuses – signalled that his overhaul cleared the way for a salary increase.

But critics warned that MPs were in danger of being “more out of touch and greedier than ever” by demanding yet more cash at a time when millions of British families are still feeling the financial squeeze.

A clamour for a pay hike began yesterday after Sir Christopher announced his plans for overhauling MPs’ taxpayer-funded expenses. Sir Christopher said: “Our proposals are reasonable and fair and bring Westminster into line with other walks of life and other legislatures.”

He called for an end to MPs’ enrichment by acquiring property portfolios at the taxpayers’ expense or dodging tax through “flipping” the property designated as their second home.

He said: “They should not expect to acquire a valuable asset at the public’s expense.”

Sir Christopher said his proposals will reduce the cost of the Westminster allowances system, which costs taxpayers around £94million a year.

He estimated £2.7million a year will be saved from the accommodation budget, a further £5million from scrapping MPs’ payoffs and an extra £2million from abolishing a controversial “communications allowance” for sending information to constituents.

But Sir Christopher also made clear he did not oppose MPs being granted a substantial pay rise.

He said his review had “cleared away the undergrowth” of the expenses system to allow Whitehall chiefs to now address the issue of MPs’ pay.

Senior Labour MP Sir Stuart Bell yesterday led the calls for more pay for MPs, saying many felt “victimised” by the expenses reform plans.

He claimed MPs had not had a “proper” pay increase since 1976, and had been encouraged to claim more cash in expenses instead. Senior MPs have long been pressing for an annual salary of at least £100,000, far above the current level of £64,766. And several called for a substantial pay rise in submissions sent to Sir Christoper’s inquiry into the Westminster expenses systems.

Tory backbenchers Douglas Hogg – who claimed the cost of cleaning his moat on his expenses – and Sir Patrick Cormack called for the MPs salary to be doubled in letters to the inquiry.

But campaigners against Westminster waste were last night outraged about the prospect of a hike in MPs’ pay. Matthew Elliott, chief executive at the TaxPayers’ Alliance, said: “There is no way MPs should receive a pay rise, it would make them look more out of touch and greedier than ever.”

Gordon Brown yesterday told MPs that the Government accepted Sir Christopher’s proposals “in full”, and Tory leader David Cameron also backed them.

But MPs last night criticised Sir Christopher’s report and called for some proposals to be dumped.

And a revolt was growing among the wives and husbands of MPs who face losing their jobs under Sir Christopher’s crackdown on the employment of relatives.

A group of MPs’ spouses working at the Commons – led by Tory MP Roger Gale’s wife Suzy – called for the proposed employment restriction to be scrapped.