British Lawmakers Ordered to Document Expenses Over 25 Pounds

March 11 (Bloomberg) -- British members of Parliament should file receipts to reclaim all expenses over 25 pounds ($50), the Speaker of the House of Commons said in a report aimed at sweeping away suggestions of financial misconduct.

Michael Martin, who led a review into compensation for lawmakers' expenses, said the new limit should apply from April, replacing a previous threshold of 250 pounds.

Derek Conway, a Conservative member of the House of Commons, was disciplined after admitting he employed his son as an assistant when he was supposed to be at university 280 miles away. An aide to the speaker resigned last month after misleading a journalist about taxi expenses claimed by Martin's wife.

``The prime minister welcomes any steps towards greater transparency in MPs' expenses,'' said Michael Ellam, a spokesman for Gordon Brown. Ellam said Brown would leave it to House of Commons authorities to determine whether the prime minister's office will publish all of its expenses.

Lawmakers are entitled to claim a set of allowances that can total as much as three times their 62,000-pound annual salaries. The allowances cover the cost of running homes in their districts and London as well as travel and office expenses.

``We have considered whether the threshold should be zero but ruled it out for practical reasons,'' the House of Commons Members Estimate Committee said in its report published today.

Petty Cash Limits

The amount of petty cash that parliamentarians can withdraw for office expenses will drop to 50 pounds per month from 250 pounds.

On Feb. 26, lawmakers lost a legal appeal to keep their expense claims secret. The Information Tribunal, which ruled on the case, said there is a lack of clarity over the expenses claimed by members of Parliament.

``There is a long-standing lack of public confidence in the system of MPs' allowances,'' the tribunal said. ``The extent of information published is not sufficient to enable the public to know how the money is spent.''

Today's recommendation does not affect the lawmakers' food allowance, which allows claims of up to 400 pounds a month without documentation from those who are away from home. The committee will publish further recommendations in July.

The committee said it is ``determined to establish audit controls which command public confidence.'' It will hold discussions with the National Audit Office, accountancy firms, Her Majesty's Revenue & Customs department and the Audit Commission to establish practical arrangements.

To contact the reporter on this story: Kitty Donaldson in London at kdonaldson1@bloomberg.net.

To contact the editor responsible for this story: Eddie Buckle at ebuckle@bloomberg.net.