Byelection likely after Labour suspends MacShane over false invoices

Labour acts after Commons standards and privileges committee calls for MacShane to be suspended from Commons for 12 months.

It didn't take Labour long to act after the Commons standards and privileges committee recommended that Denis MacShane be suspended as an MP for 12 months for submitting 19 false expenses invoices totalling £12,900. The party has immediately suspended the former Europe minister and has signalled that his "career as a Labour MP" is over. A party spokesman said:

These are very serious findings concerning Denis MacShane and we accept his statement this morning that his career as a Labour MP is effectively over. In the light of the report’s recommendations to the House, the Labour party has suspended Denis MacShane with immediate effect, pending a full NEC enquiry. We will be talking to Denis MacShane about his future and the best course of action for him and for his constituency.

MacShane previously had the Labour whip withdrawn after a police investigation into his claims was launched, but had it reinstated when Scotland Yard announced in July that it would be taking no further action.

The MP has so far refused to say whether he will step down, stating that he is "consulting family and friends" as he reflects on his future. Here's the statement published on his website:

I am shocked and saddened that the BNP has won its 3 year campaign to destroy my political career as a Labour MP despite a full police investigation which decided not to proceed after investigations and interviews. I am glad the Committee notes that there is no question of personal gain.

Clearly I deeply regret that the way I chose to be reimbursed for costs related to my work in Europe and in combating anti-semitism, including being the Prime Minister’s personal envoy, has been judged so harshly.

I remain committed to work for progressive values, for Britain playing a full part in Europe, and for combating anti-semitism even though I can no longer undertake this work as a Labour MP. I am consulting family and friends as I consider my position and study the full implications of the report. I am obviously desperately sorry for any embarrassment I have caused my beloved Labour Party and its leader Ed Miliband whom I greatly admire.

MacShane will surely conclude that he has to resign, rather than leave Rotherham without representation in parliament for a year. Equally, the verdict of the committee, which said this was "the gravest case which has come to us for adjudication, rather than being dealt with under the criminal law", is so damning that he can no longer reasonably remain an MP. It said:

We accept that Mr MacShane is widely acknowledged for his interest in European affairs, and the funds he claimed could be said to have been used in supporting that interest. Those activities may have contributed to his Parliamentary work, albeit indirectly. He has expressed his regret, and repaid the money wrongly claimed. But this does not excuse his behaviour in knowingly submitting nineteen false invoices over a period of four financial years which were plainly intended to deceive the Parliamentary expenses authorities. This is so far from what would be acceptable in any walk of life that we recommend that Mr MacShane be suspended from the service of the House for twelve months. This would mean he lost his salary and pension contributions for this period.

MacShane would be wise to announce his resignation today, rather than cling onto an office he can no longer credibly hold.

UPDATE 2/11/2012 16.35

MacShane has announced that he will be resigning as an MP. The BBC's James Vincent reports on Twitter that MacShane made the following statement:

"I hope by resigning I can serve by showing that MPs must take responsibility for their mistakes"

Denis MacShane, pictured whilst Europe minister in 2005. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty
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PMQs review: Jeremy Corbyn prompts Tory outrage as he blames Grenfell Tower fire on austerity

To Conservative cries of "shame on you!", the Labour leader warned that "we all pay a price in public safety" for spending cuts.

A fortnight after the Grenfell Tower fire erupted, the tragedy continues to cast a shadow over British politics. Rather than probing Theresa May on the DUP deal, Jeremy Corbyn asked a series of forensic questions on the incident, in which at least 79 people are confirmed to have died.

In the first PMQs of the new parliament, May revealed that the number of buildings that had failed fire safety tests had risen to 120 (a 100 per cent failure rate) and that the cladding used on Grenfell Tower was "non-compliant" with building regulations (Corbyn had asked whether it was "legal").

After several factual questions, the Labour leader rose to his political argument. To cries of "shame on you!" from Tory MPs, he warned that local authority cuts of 40 per cent meant "we all pay a price in public safety". Corbyn added: “What the tragedy of Grenfell Tower has exposed is the disastrous effects of austerity. The disregard for working-class communities, the terrible consequences of deregulation and cutting corners." Corbyn noted that 11,000 firefighters had been cut and that the public sector pay cap (which Labour has tabled a Queen's Speech amendment against) was hindering recruitment. "This disaster must be a wake-up call," he concluded.

But May, who fared better than many expected, had a ready retort. "The cladding of tower blocks did not start under this government, it did not start under the previous coalition governments, the cladding of tower blocks began under the Blair government," she said. “In 2005 it was a Labour government that introduced the regulatory reform fire safety order which changed the requirements to inspect a building on fire safety from the local fire authority to a 'responsible person'." In this regard, however, Corbyn's lack of frontbench experience is a virtue – no action by the last Labour government can be pinned on him. 

Whether or not the Conservatives accept the link between Grenfell and austerity, their reluctance to defend continued cuts shows an awareness of how politically vulnerable they have become (No10 has announced that the public sector pay cap is under review).

Though Tory MP Philip Davies accused May of having an "aversion" to policies "that might be popular with the public" (he demanded the abolition of the 0.7 per cent foreign aid target), there was little dissent from the backbenches – reflecting the new consensus that the Prime Minister is safe (in the absence of an attractive alternative).

And May, whose jokes sometimes fall painfully flat, was able to accuse Corbyn of saying "one thing to the many and another thing to the few" in reference to his alleged Trident comments to Glastonbury festival founder Michael Eavis. But the Labour leader, no longer looking fearfully over his shoulder, displayed his increased authority today. Though the Conservatives may jeer him, the lingering fear in Tory minds is that they and the country are on divergent paths. 

George Eaton is political editor of the New Statesman.

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