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Laws will struggle to ride this affair out

The Lib Dem appears to have broken the spirit, if not the letter, of the rules.

The David Laws revelations are the first big blow to the new government and, for David Cameron and Nick Clegg, a reminder that the expenses scandal can at any moment overshadow all talk of a "new politics".

It is currently unclear whether Laws, one of the coalition's star performers, can survive. But one point in his favour is the absence of any evidence that he abused the expenses system for personal gain. Laws's claim that his motivation throughout has been not to "maximise profit", but to protect his privacy, stands up to scrutiny.

Yet the rules remain unambiguous: MPs are forbidden from "leasing accommodation from a partner". Laws's defence relies on a highly technical definition of "partner" that may not satisfy either parliament or the media.

In his statement last night he said: "Although we were living together we did not treat each other as spouses. For example, we do not share bank accounts and indeed have separate social lives."

But Laws's decision nevertheless to pay back tens of thousands of pounds "immediately" does appear to be a tacit acknowledgement of guilt. He broke the spirit, if not the letter, of the rules.

That Laws may fail to ride this crisis out is in part due to the fact that the Liberal Democrats in general, and Laws in particular, chose to make their relatively clean expenses record an election issue. Here, for instance, is an extract from the statement posted by Laws's constituency party following Sir Thomas Legg's investigation:

David has not been asked to pay back any expenses paid out to him. So far, over a third of MPs are believed to have been asked to make repayments.

I expect Laws is now regretting his decision to take the moral high ground.

And yet that this story has broken during the coalition's honeymoon period may save him. So far, he has not had to implement the sort of spending cuts that Philip Hammond once predicted would make the Chief Secretary to the Treasury "the most hated man in England".

But regardless of the verdict of the parliamentary commissioner, I would be surprised if Cameron kept him in this highly sensitive post for much longer.

Postscript

Incidentally, Laws's homosexuality sheds new light on his decision to reject George Osborne's invitation to join the Conservative front bench. As Allegra Stratton's illuminating profile of Laws noted on Friday, he still had great reservations over the party's position on social affairs and personal morality.

Laws has previously told Tory MPs that he would have been one of them, had it not been for the repellent Section 28.

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Tags: David Laws

46 comments

Frederick Chichester's picture

You've got it back to front. He seems to have broken the letter of the laws - namely a very silly rule that one shouldn't rent from a partner - but not their spirit. The spirit, remember, is that MPs should be able to claim for the cost of a second London home. That's all he's done. It makes absolutely no sense that a fellow can claim for his joint mortgage but not for his joint rent.

Red Rag's picture

The big question is how many more.....and who is helping the right wing press....with friends like these....http://redrag1.blogspot.com/2010/05/red-rag-so-who-will-next-lib-dem-to-be.html

Mark's picture

I have sympathy for Mr Laws for the shameful way the Telegraph invaded his privacy by outing him. However, it was only days ago that Mr Laws was telling civil servants he was cutting their expenses while he was claiming £40,000 from the tax payer to subsidise his lover's mortgage. So much for Clegg's new politics.

Lou's picture

You cannot keep a man in a post such as Mr Laws' after such dishonesty in a governemnet that claims to be squeaky clean. No matter how you dress it up, at best he has been economical with the truth and at worse has deliberately lied. As I have posted elsewhere, there are many couples of all sexual persuasions who retain separate bank accounts and don't socialise together, that does not justify fiddling the system, claiming money you shouldn't and it's an insult to the intelligence of the general public to try to do so.
To admit being together since 2001, to say that he remortgaged a house to contribute to his partner's new one suggests a great deal of committment to each other.
He has a right to privacy and his sexuality is his alone to discuss but you cannot be knowingly gay around westminster village and in a partnership and then justify a claim for rent money on the basis that it's not really a partnership. He has left himself wide open to being outed by the nature of his claims. The media isn't the one harassing a member, the general consensus of public opinion is that his position as Chief secretary to the treasury has become untenable given the nature of the job he has to do and the claims he has made.
Yahoorsur is right, if he had justified a benefit claim in such a way, his benefit would be removed, he would be prosecuted for making false claims and face a custodial sentence as well as being ordered to pay back the money that had been claimed. Benefit claimants live below the poverty line and have to pay the consequences for deception, so should the far wealthier Mr Laws and paying back the wrongly claimed money is not enough, he should be removed from his post.

Brad Street's picture

@Frederick Chichester He doesn't have a joint rent. His partner owns the property and so doesn't pay rent. If it was about "privacy and not greed" then he shouldn't have claimed anything. People can't claim housing benefit to pay to a partner, why should MPs (who we already pay a lot of money to) be allowed to break the rules even if they don't agree with them?

Brad Street's picture

On his own website on June 18 last year he said, "I have rented a property in London, rather than buying one, so I have made no gain from buying a property with help from the taxpayer." Only he gave a chunk of money to his partner to enable him to buy the property, and then paid him rent to help him be able to afford the mortgage. I think that most people would question the statement that he hadn't benefited. David Laws is wealthy former stockbroker, some say a millionaire. So why didn't he buy a property and take rent from his partner as a lodger - no bending rules, keeps his privacy?

Mike S's picture

"Laws's claim that his motivation throughout has not been to "maximise profit" but to protect his privacy stands up to scrutiny." No it doesn't. To protect his privacy all he needed to do was stop making dishonest claims of the taxpayer. Nobody would have been interested in exploring why he was no longer claiming.

Garry K's picture

How would his excuse stand up if he was claiming benefit as a single person (who was actually living with someone else)? A benefit claimant would be hammered through the courts and even face prison..Just food for thought

Somersetian's picture

No if's no buts at the end of the day he's got to go it would make the new government a laughing stock if he's allowed to stay even if he does re-pay.

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Garry K's picture

Very little homophobia that I can see. As an example, my statement would stand if the guy was homosexual of straight. This is simply a question of right or wrong and sexuality does not come into it

davidk1's picture

Oh look...the Tory Troll 'Beak' is nowhere to be seen.

Funny that.

AncientBriton's picture

Lots of axes being ground here. This is my take on it:
http://ancientbritonpetros.blogspot.com/2010/05/bedroom-farce_29.html

Mike S's picture

"Highly competent chief secretary"? Not capable of showing much judgement though. I hope his sudden conversion to immediate cuts results in the banks starting to lend and the private sector starting to invest because otherwise his financial judgement will be shown to be as deeply flawed as most of his others seem to be.

Sue Davies's picture

Why would his not claiming living allowances have suggested to anyone, anything about his private life? He is extremely wealthy and it would have been unremarkable.... except that extremely wealthy people always seem to go for everything they can get and then rabidly attack those on £65/week job seeker allowance for being scroungers and work shy!

Nick9's picture

It's laughable that anyone can argue Laws should not be immediately suspended. He failed to declare that his partner was also his landlord. Under social Security Law that would definitely be a fraud offence under S.112 or S.111 (it depends on the gravity of alleged offence as to which one) of the Social Security Administration Act 1992 as ammended by the Fraud Act 2001. It's a breach of the Housing Ben (general) Regs as to 'contrived' tenancies involving relationships between landlord and tenant. By definition he was a partner under Civil Partnership Act 2004.

It's simple, if he was a benefit claimant he'd be dragged in for an interview under caution and almost certainly prosecuted. The only difference is he's not but the law should equally apply because it's fraudulently claiming money from the State. It's nothing to do with homophobia, if he'd declared it no-one need be any the wiser but he didn't and thus the price he pays is public exposure. Suspension followed by a proper investigation by the authorities is what he justly deserves; Cameron should act immediately in activating the appropriate action, but he won't do a thing. There should be an absolute outcry over this.

Nick's picture

And on a question of appropriate sentence, Laws would face in the Crown Court, for offences involving £40k of fraudently claiming money from the State a term of imprisonment of around 18 months; his actions justify an equal deterent.

maxinemf's picture

I think the issue of privacy is a smokescreen. If he is as honourable as all the Lib Dems grandees are claiming, why did he not come clean from the very beginning? What sort of person engages in double deception to both family and the state. How on earth can he be trusted to look after nations finances. The fact that he is a millionaire makes it all the more sordid. Please do the honourable thing and GO!!

maxinemf's picture

For a man that has done nothing wrong, how come he missed his normal Saturday constituency meeting this morning?

Seff Qaid's picture

Mr. Law’s sexuality does not come into it and it should not, but this public servant has stolen money from the public purse £40,000 he has lived with his Partner from 2001 till 2010 he has contributed to the up keep of his partner by paying rent and also claiming for property repairs to the property is that not the responsibility of the Landlord all this from the public purse I am a Tax payer and I find it offensive that this should happen even if he is a nice guy , he cannot be that nice , Also I find it very offensive when other Lib-Dem Mps come out in support of this is the UK tax payer just to take all this corruptness and say and do nothing ,I was a Lib Dem voter but I changed when the allied the party with the conservatives ,there was always a chance I could have changed my mind but not now

Lou's picture

David Chaytor, ex MP for Bury North, is accused of "dishonestly claiming" £1,950 for IT services and further sums of £12, 925 and £5,425 relating to rent on properties which he and his mother allegedly owned. He is facing criminal proceedings. He was suspended from the parliamentary labour party after much call from, amongst others, a Mr David Cameron. Mr Laws is alleged to have claimed 40 thousand pounds for rent he was not entitled to claim and there are allegations that his utility claims dropped enormously after the change in parliamentary expenses to those claimed before. (From The Telegraph today - "Mr Laws’s claims for a series of other expenses are also now expected to come under scrutiny. Between 2004 and 2008, he submitted regular claims, in rounded figures, for service and maintenance, repairs, utilities and other items.
He typically claimed between £50 and £150 a month for utilities and £100 to £200 for maintenance. Receipts were not provided to back up the claims. However, in April 2008, the rules were changed and MPs had to provide receipts for any claims above £25. Mr Laws’s expense claims dropped sharply. For example, he claimed only £37 a month for utilities".)
If Mr Chaytor faces criminal proceedings for a smaller amount then surely so should Mr Laws and at the very least he should be suspended, as Mr Cameron called for with the Labour MPs.
I recognise that an investigation has to be held before deeming the claims to be of a criminal nature but Mr Laws should not remain in office whilst such an investigation takes place.

Lou's picture

And if the Telegraph had not approached Mr Laws with their claims, we the public would be non the wiser. Laws ONLY offered to pay the money back on learning of the story the telegraph had, let's not kid ourselves that this was an honourable act it was only because he had been caught out.

This is not me having a pop at a man for being gay, but having a pop at a man behaving immorally and unethically in his expenses claims and I don't care who he works for either. Rules should apply across the board.

Anna's picture

Most sane people understand and sympathise with the difficulties facing homosexuals who wish to keep their lifestyle private. What they don't sympathise with is someone using their sexuality to excuse their wrongdoing. If David Laws wished to keep his sxuality private, as he had every right to do, why didn't he simply rent a room round the corner? Instead he chose to live with his partner, and allowed the taxpayer to foot the bill for the rent and also utilities - though the regular claims of £200 dropped dramatically when receipts were required. This smells. Moreover, Laws' partner subsequently sold the house and trousered a profit of £198,000!! One suspects that Laws chose to live with him in order to contribute substantially, through his allowances, to the mortgage and to his partner's property speculation. While it is true that many MPs have behaved in an equally shabby way and escaped with mild or no punishment, that doesn't excuse Laws' behaviour. And his deception is particularly offensive as he is the minister in charge of cuts. He really must go.

Rose4's picture

Well he is about to announce his resignation. Some justice for those about to lose much more finances.

Lou's picture

Treasury statement from Laws sees him resign as Chief treasurer. Thank you Mr Laws.
Danny Alexander taking over.
In future it would be great to think our MPs will be squeaky clean, and I would like to think that they all will be, but if they aren't and they get caught, then they should immediately say I was wrong, I will pay the money back, I have referred myself to the Parliamentary Standards committee and I resign my position with immediate effect.
A little mea culpa goes a long way with.

raymond392's picture

Enough said he has resigned good riddance

Nick9's picture

Absolutely right that he should have resigned, it's not got anything to do with him being gay; he was a cheat and he got caught out; simple as that. But let this not be the end of it, the public (whose money he allegedly defrauded us of)have a right to see it's properly investigated. But whoever said about the equally worrying factor over that clown Osborne in charge of our finances raises a valid concern.

It was probably a Cameron stitch up to get rid of him (maybe that's stretching it!). So wonder what will happen about electing his replacement....now there's an interesting thought.

ernest boddy's picture

we have slagg on the telly telling every one that his party is cleaner than clean, and chameleon saying he his going to clean up the commons, and then this happens, welcome to govt, and your the likely lads to do it, god help us. what by the way are the pair of you doing about the ashcroft,and hague, dirty business.

Tom R's picture

Abdul, just because people disagree with you does not mean they are homophobic.

John Jameson's picture

What would have happened if he'd been claiming housing benefit and chose not to give all the information? Would protecting his privacy work as a justification? I don't think so. His definition of not treating each other as spouses is nonsense and an insult to the intelligence of the public.

jeremiah's picture

This must have been why he did not appear on QT.

Downing Street must have known this was going to break. They used Campbell as an excuse to get Laws out of it!

swatantra nandanwar's picture

Laws has broken the both the spirit and the letter, and should go immediately. Cable will probably take his place. How many more are there like Laws. Tatchell would be doing us all a favour by outing all of them now.

thinkov's picture

should be out ,replaced by vince

that'd make waves

Watcher's picture

He should be peosecuted for fraud. No excuse for him, he has had all this time to come clean and preferred not to. Nothing worse than a hypocrit and Ants & Dec should insist he gets charged or resign themselves.

Yahoorsur's picture

If a single parent had embezzled £40000 in housing benefit,you can be bloody well sure that her feet would not have touched the ground on the way to Corton Vale,the absolute hypocrisy of the man beggers belief,he was in a relationship with James Lundie from 2001,he claimed over a 5 year period,if he had any principles whatsoever he would resign both from govt and as an MP,the more I read that statement and hear from other mp’s about what a great public servant he is,the more angry im becoming,it’s 3+ bloody years wages for me and he stole,yes stole from the public purse,begone you scoundrel.

faith waterhouse's picture

I find it slightly worrying that David Laws has sought up until now to keep his homosexuality a secret.Surely a man in his powerful position should have the confidence to be more open and honest about himself and I wonder if he has also been less truthful about his politics from the start?

Julian Bray BLOG: http://tinyurl.com/pknlxn's picture

COALITION DUCKHOUSE UK BLOG: http://tinyurl.com/pknlxn he really should go and this is why....

No one mentions that his covert gay lover is a powerful spin doctor with the american Edelman compaq
ny

Vox Pops's picture

In our poll 84% say that he should go; not just as a minister, but as an MP too - http://www.vxp.me/t327

Tom R's picture

I think the biggest disgrace is still that he had to take the decisions he did to keep his sexuality and privacy actually private. I like David Laws because he's a good politician and appears to be an honest guy.

He has only just told his family . . .

I'd give him chance, removing him now will not actually help to solve the problem that there clearly is.

And @ Faith Waterhouse: Why should his sexuality have to be public? He's in a job that people seem to believe we should know everything about them, just so we can class them as "honest". MP's are MP's for a reason, no matter the party, they join to try represent a certain group of people, make their voices heard. I don't see where David's sexuality comes into this at all.

New politics for me is not the govt. kicking members out of the cabinet out of the fear of being harassed by the media. I hope Cameron grows a pair and realises that the new politics we keep hearing about actually is new, fair and equal.

rant over.

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