Expenses chiefs meet over reforms

Sir Ian will decide whether to implement Sir Christopher's reforms

The two men charged with overhauling MPs' expenses have held a "friendly" meeting - following reports of a split over proposed reforms.

Sir Christopher Kelly - whose six-month inquiry proposed major changes last week - has met Sir Ian Kennedy, the man who will decide which to implement.

It follows reports Sir Ian might drop some proposals, including a ban on MPs employing relatives at public expense.

Sir Ian's standards body said there was "a lot of work to do" on a new scheme.

He is heading up the new Independent Parliamentary Standards Authority (Ipsa) which is in charge of making changes to the much-criticised system of MPs' expenses.

Reported concerns

He will look at Sir Christopher's proposals - made after a lengthy independent inquiry involving hundreds of submissions from the public and MPs - which include banning MPs from buying homes and claiming for mortgage interest on expenses.

Sir Christopher's proposal was that instead MPs only be able to claim for rent. To stop those who already had properties being penalised, he proposed they be allowed to continue claiming for up to five years - but should surrender any profits to the taxpayer.

It was a good and friendly meeting Ipsa statement Hague in expenses reform warning Will MPs accept expenses reforms?

This is one of the proposals which the Daily Telegraph reported Sir Ian had concerns about.

The other is the ban on employing relatives - something more than 200 MPs do - which would also be phased out under Sir Christopher's proposals. Some MPs' spouses are considering legal action to block them.

Some MPs are annoyed they will not get a vote on the reforms - but have been told they can make their views known to Ipsa, which will hold a wider consultation on them before deciding which to implement.

But others expressed concern at reports suggesting Sir Christopher's proposals would be "unravelled".

In a statement on Tuesday, Ipsa said: "Sir Christopher Kelly and Sir Ian Kennedy held their first meeting today to discuss the way forward on reforms of MPs' expenses and allowances.

"It was a good and friendly meeting. Both Sir Christopher and Sir Ian are clear about the task ahead and the direction of travel."

'Work to do'

It added that Sir Christopher's recommendations "now require detailed work by Ipsa".

"Ipsa must also by law consult on the new scheme for allowances. There is a lot of work to do, and Sir Christopher and Sir Ian expect to meet regularly."

Earlier on Tuesday Prime Minister Gordon Brown said he was "pretty sure myself that, despite all of this speculation, these findings will be implemented".

Meanwhile, 37 MPs have signed a Commons motion urging Sir Ian to "carry out his duties in line with natural justice" and "without retrospectivity".

They are also calling for salaries to be "set independently and beyond the interference of government or Parliament".