Darling drawn into second-homes row

Apr 6 2009

Chancellor Alistair Darling has become the latest Cabinet minister to be drawn into the row over MPs' pay and perks - hours after warning the controversy was "damaging" the Government.

Despite living rent-free in Downing Street, Mr Darling claims thousands in taxpayer-funded second-home payments on his Edinburgh constituency home while also renting out his "main" home - a flat he owns in London.

Details of his claims, which came after revelations that Cabinet colleague Geoff Hoon had employed a similar arrangement when he was Defence Secretary, sparked renewed calls for an urgent rule change.

There was no suggestion either had broken under-fire Westminster pay and perks rules but Tory leader David Cameron indicated he would ban the practice and Liberal Democrat Nick Clegg branded the situation "barmy".

Mr Cameron said he would not claim the allowance if he moved into Number 10 after the next election and would expect other Conservative ministers with grace-and-favour properties to do the same.

The Daily Mail said that between 2003 and 2005 he listed a room in a flat shared by colleagues as his "main" home, allowing him to claim cash for the running of his family home in Scotland.

That echoes the arrangement used by Home Secretary Jacqui Smith for which she is now under investigation by the Parliamentary Standards Commissioner John Lyon.

In 2005, the newspaper reported, Mr Darling designated Edinburgh as his main home and bought a flat in London that was then registered as his second home, allowing him to claim public funds to run that.

When he became Chancellor and moved into Downing Street, he once again made the constituency residence his second home and started renting out the London flat.

A spokeswoman for the Chancellor said he had done nothing wrong and had had the arrangement approved.