last updated: Wednesday 13 May 2009, 07:20am

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Leaders pledge to restore public trust

Gordon Brown

Gordon Brown has said 'extreme' action must be taken to restore public trust in politicians as the expenses claims debacle escalated.

As the Daily Telegraph revealed more about how taxpayers' cash has been lavished, a Westminster committee agreed MPs could be forced to repay expenses under the second home allowance as part of a review of the last four years of claims.

The Members Allowances Committee also agreed steps to tackle the 'flipping' of properties, proposing that MPs' second homes should be fixed for the duration of a Parliament unless 'personal circumstances changed significantly'.

Just hours after Tory leader David Cameron 'read the riot act' to colleagues and then named and shamed them in a dramatic Westminster press conference, the Prime Minister said the independent review of every claim made will allow MPs to show they are 'worthy of public trust'.

Mr Brown said there will also be 'interim' restrictions on what can be claimed, adding: 'This is a radical step but it's a necessary step.'

His comments came after Cabinet colleague Hazel Blears said she will repay £13,332 made by avoiding capital gains tax when she sold one of her homes in Kennington, south London. She had designated it her second home by telling HM Revenue and Customs it was her primary residence.

Brandishing a cheque for the amount the Communities Secretary said would be sent to the Inland Revenue, she said: 'I've heard absolutely the outrage and the anger the public feel about what has been going on.'

It has also emerged that ex-Liberal Democrats leader Sir Menzies Campbell hired an interior designer to refurbish his small London flat at a cost to the taxpayer of almost £10,000.

He said the expense was justified as he had not used his full second home allowance in previous years. The claim included a new king-size bed, worth £1,024, Roman blinds worth £528.75, five cushions costing £176.25 and a £1,515 decorating bill.

And another LibDem, Andrew George, the MP for St Ives, claimed £308,000 for a flat used by daughter as 'bolt hole', the Telegraph alleged, while housing spokesman Lembit Opik has said he will refund £40 he claimed for a court summons he received for not paying his council tax.

And LibDem home affairs spokesman Chris Huhne charged taxpayers £119 for a trouser press which was delivered to his main home, not his second home. He has agreed to repay this money.

The Tories' list outlined by Mr Cameron was headed by shadow children's secretary Michael Gove who will return £7,000 paid for furniture and shadow leader of the House Alan Duncan who is to pay back almost £5,000 which he claimed for gardening.

Shadow health secretary Andrew Lansley will repay £2,600 for home improvements and the chairman of the party's policy review Oliver Letwin £2,000 for the repair of a leaking pipe under his tennis court.

Shadow home secretary Chris Grayling, shadow cabinet office minister Francis Maude, and shadow transport secretary Theresa Villiers will stop claiming the second homes allowance altogether.

Mr Cameron also said he had dealt with a series of 'smaller but nevertheless significant' matters involving shadow chancellor George Osborne, shadow business secretary Ken Clarke, and shadow skills secretary David Willetts.

© Independent Television News Limited 2009. All rights reserved.