ACA Expenses - What are the solutions?

Iain Dale put forward a very simple solution on his blog which I support in some form.

http://iaindale.blogspot.com/2009/05/darling-hoon-are-two-most-serious-cases.html

I think everyone can sympathise with MP's whose constituency is beyond reasonable commuting distance from Westminster. They do need somewhere to stay whilst in Parliament.

So what are the leading options?


1) Strike a deal with a number of hotels
2) Purchase grace & favour homes for all
3) A standard overnight allowance which they spend as they choose
4) Carry on as is with some modifications

1) Hotel deal
Not sure this is the most cost effective. Assuming a negotiated price of say £80 per night, this would exceed the current second home allowance. Would remove the ability for the MP to profit personally (and avoid tax) as they do currently.

2) Grace & favour homes for all
A big bill initially (hundreds of millions) but an (generally) appreciating asset.
Would remove the ability for the MP to profit personally (and avoid tax) as they do currently.
Worth considering.

3) Standard overnight allowance
Hmm, allowing MP's to be in charge of money? Discounted as it would be open to outrageous ruses!

4) Carry on as is with some modifications
A bit like Iain's view really, but I'd like to add a few things.

MP's should not personally profit using taxpayers money. Therefore any second home (which has had the mortgage interest paid for by the taxpayer) which is sold at a profit should have that profit (or the relevant percentage if the MP was paying some of the interest themselves) paid back to the fees office. If the MP was paying some of the interest, then they should pay CGT on the relevant portion of the profit.

Food allowance - drop it

Furniture - agree with Iain - a one off payment at the beginning (say £5K) and then every three years or so.