Newcastle MP publishes latest tax return, comments on Legg report on MPs’ expenses and electoral reform

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04 Feb 2010

Newcastle’s MP Paul Farrelly has published his up-to-date tax return for 2008-9, the first again to do so. Following the release of the long-awaited, final report by Sir Thomas Legg into MPs’ expenses, Paul says a vote next week on electoral reform would indicate the resolve to restore confidence in our political system.

Before Christmas, Paul fulfilled a promise to release his tax returns all the way back to 2001, when he was first elected. An important part of reforms agreed last summer was to make MPs declare other employment, or consultancy contracts, and the amount of time they spend on other work.

Just like the US, Paul believes this should be reinforced by requiring UK politicians to release tax returns, in which income has to be declared by law. The latest release brings Paul right up to date following the 31st January deadline for 2008-9 filing with Her Majesty’s Revenue and Customs.

‘I devote my working time to my job as Newcastle’s MP and that’s what these returns again show. If you inspect my returns, you will see I have no lucrative directorships or consultancies, nor do I lobby for special interests or continue practising a profession, like the law.’

‘That’s as it should be, and I’d urge other candidates locally to commit to doing the same. It’s been a rotten year for confidence in our political system, but I’ve been as open as I can be, including publishing my parliamentary accounts well before the required deadlines.’

On releasing his 2008-9 accounts to The Sentinel and Radio Stoke in the spring last year, Paul picked up that in 2008 he had been paid twice for the same BT bill for one quarter.

He wrote to the Department of Resources in Parliament, asking that they dock the amount - £123.93 – from monies owed to him, but did not receive a reply.

Sir Thomas Legg’s team also spotted the error, and to bring the matter to a close, Paul paid a cheque back. This is recorded in the report of Legg review published today.

‘There have been some real abuses, which have rightly been revealed in the public interest over the past year. In his report, Sir Thomas points out that there have been many types of repayments and he’s not tarring everyone with the same brush by commenting on motives.’

‘Mine was an innocent mistake, which I identified, and the sort of which I’ve made before in my private life – paying a bill once on the original and then on the reminder. After all this, it’s the only issue after combing through five years' worth’ of all my parliamentary accounts.’

‘What’s important now, hopefully, is that we can move on and focus locally and nationally on policies and the general election.’

‘It is vital, however, that confidence in the political system is restored. To that end, there is likely to be a vote in parliament next week implementing a promise to carry out a referendum on electoral reform, so the people have a direct say in changes to the system.’

‘I’ll be voting in favour of that. Specifically, the alternative vote system would ensure that every MP had the backing of at least 50% of the voters, which would be better.’

‘I’ve got an open mind on more proportional systems of voting, but one thing I think is vital is to keep the constituency link with MPs. I am not really in favour of ‘list systems’ which make MPs beholden to headquarters, not local people, and which encourage professional ladder-climbers, rather than local people from the grassroots.’

To view Paul’s latest tax return for 2008-9, click here

To view the report from Sir Thomas Legg on expenses, click here


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