MPs demand a pay rise in expenses row

MPs demanded a pay rise in compensation today as they reacted angrily to stringent curbs on their expenses.

Sir Christopher Kelly unveiled plans to axe perks such as mortgages on second homes and "golden goodbyes".

But within minutes the battle began to water down his plans. Commons Leader Harriet Harman suggested that they would be shaped by the new independent standards authority.

Sir Christopher said he was "mystified" by Ms Harman's remarks and it would be a "shame" if his reforms, which will save the taxpayer about
£10 million, were amended.

He added: "There is always wriggle room, we are
talking about politicians after all."

Sir Ian Kennedy, the new chairman of the authority, hinted that he would take voters' views into account more than MPs'. Speaker John Bercow wrote to all MPs warning them to accept the plans in full.