Jacqui Smith: I have done nothing wrong

HOME Secretary Jacqui Smith was under pressure yesterday as the latest Cabinet minister to face questions over her expenses.

Jacqui Smith says she spends most of her time staying at the London home of her sister Jacqui Smith says she spends most of her time staying at the London home of her sister

She insisted she did nothing wrong by listing the house in her constituency where her husband and children live as her second home. She said she spent most of her time lodging at her sister’s house in London – which is her main address.

But choosing the family property as her second home has enabled Ms Smith to claim £116,000 over several years for it from the tax-free Additional Costs Allowance supposed to help MPs maintain two homes.

Under the ACA rules the main residence is where the MP spends more nights. A spokeswoman for Ms Smith said: “The Home Secretary has always abided fully with Parliament’s clear rules on expenses and has long-standing written approval from the Parliamentary Fees office for any agreed expenses.”

The Home Secretary has always abided fully with Parliament’s clear rules on expenses

Spokeswoman for Jacqui Smith

The Home Secretary’s spokeswoman refused to say what rent Ms Smith paid her sister in London.

Questions were also asked as to why Ms Smith chose to stay with her sister instead of using a Government-owned grace-and-favour address for senior ministers.

Most of those properties already have security features including round-the-clock police protection – costing at least £200,000 a year – to guard a key terrorist target like the Home Secretary.

Her sister Sara Smith, 39, is a TV news reporter for BBC South East.

The questions over the Home Secretary’s financial arrangements were last night increasing speculation that she could be a high-profile victim of any summer reshuffle by Gordon Brown. Many Labour MPs believe she has under-performed in her key role and faces a tough opponent in Tory shadow Chris Grayling.

Lib Dem MP Norman Baker said Ms Smith had organised her affairs so they were extraordinarily bad value for the taxpayer. He said: “This suggests that the steps taken to eliminate unsatisfactory elements of the housing allowance system have not yet been completed.

“I haven’t accused Jacqui Smith of breaking the rules, but the public will come to their own conclusions that this is not her second home.

“Quite clearly she has a large house in her constituency where her family live and go to school, while she is kipping out with her sister in a small house in London. I suspect what she pays in rent is far less than what she claims on her family home.”

Despite saying her main home is in London, Ms Smith’s husband – whom she pays £40,000 from public funds as her assistant – and two children live in a detached house worth around £300,000 in Redditch, West Midlands.

A spokesman added to the confusion over her main home by letting slip that the Home Secretary tended to go home on Thursday evenings to Redditch. Ms Smith’s own website seems to confuse whether her main home is in Redditch or in London, stating she still lives in Redditch.

But her spokeswoman added: “She spends the majority of her time in London attending to Government business and has full approval for any associated expenses relating to her second home.”

She said the Home Secretary contributes to her sister’s household but did not give details of rent or other arrangements. 

“She has lived with her sister in London since she was a backbench MP and is perfectly happy with it. Most would think that is a nice thing.”

Ms Smith earns £142,000 as Home Secretary and claimed £152,000 in Commons expenses for 2006-07.

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