The Lib Dem leader Nick Clegg argues that confidence in our politicians is at an all time low and it's time to entirely rethink MPs' expenses

With more and more scandals erupting over MPs’ expenses the need for Britain’s politicians to get the House of Commons in order is clearer than ever. And there isn’t a moment to waste.

As the recession bites millions of people across the country are losing their livelihoods. The thought of parliamentarians spending their taxes on extra homes and lavish comforts will be increasingly hard to stomach. Confidence in politicians is – understandably – at an all time low. That means it’s not just our economy that’s on the edge of a cliff. Our politics is now on the brink as well.

That’s why I have called for an urgent meeting between myself, Gordon Brown and David Cameron. A small number of individuals have so far captured headlines for exploiting their expenses. But all politicians, from all parties, have a responsibility to now work together to regain people’s trust. We need fundamental reform of MPs’ expenses so that the rules themselves are no longer open to abuse.

My proposals would create a new system that is transparent, cost effective and fair.

First, if an MP wants to own a second home they should pay for it themselves. Right now MPs can claim almost £25,000 a year to cover the mortgage interest payments on their second home and to furnish it. It’s true that MPs representing constituencies outside of Greater London need a base near Westminster so that they can do their job properly and attend late night votes. But it isn’t right that taxpayers foot the bill for properties that could potentially yield politicians huge capital gains.

The second homes allowance should be cut and restricted to rental properties and basic bills. Greater London MPs, and Ministers given ‘grace and favour’ accommodation, shouldn’t get the allowance at all.

Next we have to bring an end to the absurdity of MPs deciding on their own salaries. So long as the country is in recession there should be no pay increases, and once we are out of it any decisions on MPs’ wages should be taken independently by the Senior Salaries Review Body.

Beyond that there are a range of checks and balances we can introduce to ensure taxpayers’ money is spent wisely and appropriately. One is capping the mileage MPs can reclaim for travelling to and from their constituencies at the price of a standard open return. Another is insisting that any family members employed by MPs have been declared competent to do the job by the House of Commons authorities.

These are part of a package of reforms that can and must happen immediately. We don’t need to wait for months for a report to tell us what to do. We just need to do what’s right. If politicians can’t manage that much they can wave public trust goodbye.

You can read Nick Clegg's full proposals by visiting his website: nickclegg.com

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