last updated: Friday 3 July 2009, 12:34pm

Print this page

George Osborne probed over expenses

Claims that the Shadow Chancellor falsely claimed mortgage payments on expenses are being probed by the parliamentary watchdog.

Parliamentary Commissioner for Standards, John Lyon, said he will look into complaints lodged by a Labour activist related to Mr Osborne's claims for mortgage interest.

In a letter to Laurie Burton, the chair of the local Labour Party in Mr Osborne's Tatton constituency, Mr Lyon said he would investigate a claim that 'Mr Osborne claimed for mortgage payments that were not necessarily incurred, contrary to the rules of the House'.

It is alleged that Mr Osborne took out a mortgage of nearly £5,000 more than the reported price of his house and claimed Commons allowances to cover interest payments on the whole debt, rather than just the cost of buying the house.

The Commissioner said he would not launch an inquiry into Mr Burton's other complaint - that the shadow chancellor had 'flipped' his second home and avoided paying capital gains tax.

'This is a matter for HMRC (HM Revenue and Customs)', he told him.

The Commissioner also said that he would not be taking any further a complaint about the Chancellor, Alistair Darling, that was lodged on the same day as the complaint against Mr Osborne amid signs of a tit-for-tat row.

Mr Burton said he believed Mr Osborne had breached the MPs' code of conduct and brought the Commons 'into disrepute'.

© Independent Television News Limited 2009. All rights reserved.