Everywhere I have worked, including serving in the Army, expenses policies have had a test of reasonableness. Some of the organisations had very proscriptive policies and some loosely defined, but no matter what the rules said there was always a test of reasonableness. I even incorporated one when I ran my own company. From my dealing with the taxman, always via my accountant, they have a similar test when it comes to expenses.
There is a very good reason for this, it s impossible to account for every situation we find ourselves in. I was once stranded at an airport in India and the only room I could get for the night was in a hotel that was above my notional limit. Not only that but it was too late to cancel the room that was waiting for me in New Delhi. This meant that my expenses for that night were way above what anyone would consider in an expenses policy, but all would agree that they were reasonable, even the tax man.
So what, you might ask? Well, the latest squealing from our MP’s over being asked to pay back some of their expense claims strikes me as being somewhat petulant, and, given their very low standing with the public, very stupid:
Hundreds of MPs have had their expenses claims for the last five years reassessed by Sir Thomas Legg.
Many backbenchers are livid, saying they must now repay claims that were fully approved by Commons officials.
Sir Thomas was asked to look at every expenses claim after they were leaked to the Daily Telegraph in May.
On the advice of Sir Thomas, Downing Street said on Monday that the Prime Minister would pay back £12,415 that he claimed largely for cleaning and gardening, even though the claims had been within the rules at the time.
There is even talk of Tory and Labour backbenchers working together to protect themselves – quite insulting given that they aren’t prepared to work together to protect our basic freedoms like habeus corpus, double jeopardy and a host of other intrusions into our liberty.
Anyway, back to the expenses. Gordon Brown, a self styled man of principle, has claimed £12,415 for gardening and cleaning that Legg thinks is greater than the test of reasonableness. This makes me wonder how much he did claim for these expenses, £20k, perhaps? Lets just consider what you could get for the £12k for now. At just above minimum wage, say £7.50 and hour, (we would expect a good socialist to pay a bit extra, especially using our money wouldn’t we?) that would buy around 40 x 40 hour weeks of someone’s time, almost a full time worker.
Whilst I do support the need of MP’s to have second homes this does appear to be bit excessive to say the least. And then there’s £12k for a new kitchen, ours just cost us under £4k and we didn’t hold back, what are they getting installed?
I’ve picked on Gordon Brown’s expenses here because they were easiest and I don’t intend to go through anymore. Suffice to say that when you hear them squealing, just ask yourself honestly, was it reasonable? I suspect that the answer will be no.
But what of the retrospective nature of the claims? I don’t agree with A very Britsih Dude:
You know how it’s rotten that there’s one rule for them, and one rule for us? Sure I’m disgusted that the likes of Elliot Morely and Jacqui Boots have got away with what amounts to Fraud. But MPs are people, and as such they need to be treated according to the rules of natural justice, rather than Mob Rule.
At the moment the Tax Man cannot retrospectively charge you for taxes that you paid correctly last year. (I know the appalling misuse of the ‘Proceeds of Crime’ act by the HM R&C can bankrupt you for a £400 VAT tax error, but that’s a different matter). Nor can an employer claw back wages if you turn out to be rubbish at your job.
MP’s controlled the fees office and set there own expenses policies with no independent oversight. We were told, by them, that they were a trustworthy bunch: they lied. Now that a grown up has looked at their expenses they have been shown to fail a test of reasonableness. Its not a retroactive law imposing income taxes on past earnings, its about people spending money to cover legitimate out of pocket expenses. If I am found to have cheated thae taxman 5 years ago he expects my to pay the money back, with interest and I may also get a fine and go to jail. MP’s are getting off lightly and should be very careful.
Update:
Thanks to Devil’s Kitchen we find that MP’s did have a test of reasonableness after all, they just couldn’t be bothered to read their own rules:
As Guido highlights, a good number of the expenses that MPs claimed were not actually “within the rules”.
Sir Thomas Legg has outlined his approach to expenses in a note to MPs which is now in the public domain [PDF]. Legg confirms that payment of the second homes allowance under the Green Book rules was subject to “fundamental principles of propriety”:
The fundamental principles required MPs personally to ensure that their use of the ACA was: (a) necessary for the performance of their parliamentary duties; (b) not extravagant or luxurious; (c) in accordance with the Nolan principles of selflessness, accountability, honesty and leadership; (d) strictly in accordance with the rules governing the allowance; (e) above reproach; (f) took account of the need to obtain value for money; and (g) avoided any appearance of benefit, or a subsidy from public funds, or diversion of public money for the benefit of a political organisation. These principles together amount to a general requirement of propriety.