Tuesday 1 June 2010

David Laws: what he did wrong

David Laws breached the rules covering the additional costs allowance by claiming taxpayers's money to be paid to someone with whom he was in a relationship, according to a rule introduced into the official House of Commons guide to members's allowances in 2006. 

The rules in the "green book", as it is called, say: "You must avoid any arrangement which may give rise to an accusation that you are, or someone close to you, is obtaining an immediate benefit or subsidy from public funds." It adds: "The additional costs allowance must not be used to meet the costs of a mortgage or for leasing accommodation from yourself, a close business associate or any organisation or company in which you – or a partner or family member – have an interest; or a partner or family member."

Laws said he did not initially regard James Lundie as a partner because they had separate banking and social arrangements. There is no suggestion that the claim did not go to cover the cost of the mortgage. It appears that if Laws had taken out a joint mortgage with Lundie, he would have been able to claim within the rules, and he could have claimed even more if he had rented a property on his own behalf.

And read what Richard Littlejohn of the Daily Mail thinks he did wrong, here.