MPs Green Book

This page contains links to key documents and an extract from the MPs Green Book is to assist readers of a post on the TaxBuzz blog titled: MPs expenses - The tax questions that have yet to be addressed

Document links

• The June 2008 report of the Members Estimate Committee which led to the latest edition of the Green Book.

• A pdf of the entire 72 page Green Book (Subtitled: A guide to Members' allowances) can be downloaded by clicking either of those links. NB: This is the current version of the Green Book, published only in March 2009. The expose of MPs expenses appearing in the press relates to claims made by reference to a previous version of the Green Book.

• HMRC's publication: MP's ministers and tax

• The 2006 edition of the Green Book can be accessed through this link. The Speaker's introduction in that one includes the clear statement: "Members themselves are responsible for ensuring that their use of allowances is above reproach". This statement is conspicuously absent from the current edition - see below.

Also at the front of the 2006 edition is an introductory page written by Andrew Walker the then Diector of Finance and Administration. He says very clearly:

"It is your responsibility to satisfy yourself when you submit a claim, or authorise payments from your staffing allowance, that any expenditure claimed from the allowances has been wholly, exclusively and necessarily incurred for the purpose of performing your Parliamentary duties."

The implication being that MPs are to be treated no differently to other employees and directors.

The current edition is quite different. It comprises:

A foreward by Mr Speaker

This simply states that:

This new edition of the Green Book is the result of decisions taken by the House over the last year. Its text has been agreed by the House. The principles and rules the Green Book contains, together with the Practice Notes agreed by the Committee on Members’ Allowances, should guide Members in all the claims which they make. The Department of Resources has the task of administering the rules, of ensuring compliance with them and of giving help and advice to Members. I urge Members to make use of that advice in any case of doubt or difficulty.

Section 1 - set out in full below establishes the principles governing Members' allowances

Section 2 - sets out 10 distinct allowances. NB: The so called Additional Costs Allowances isn't listed here.

Section 3 - covers 'other information' including the bizarre notion of a facility to transfer allowances.

Section 4 - simply contains definitions.

Section 1 - Principles governing Members' allowances

1.1 Welcome

Members of Parliament are provided with financial support in the form of allowances to enable them to work effectively in Parliament and in their constituencies.

Parliamentary allowances are designed to ensure that Members are reimbursed for costs properly incurred in the performance of their duties. They provide support for:

• employing staff (Staffing Expenditure)
• provision of facilities, equipment and supplies for themselves and their staff (Administrative and Office Expenditure)
• overnight stays away from home whilst on parliamentary duties (Personal Additional Accommodation Expenditure)
• communicating with constituents (Communications Expenditure)
• House stationery and postage (Stationery and Postage)
• travel – between Westminster, the constituency and main home (Travel expenditure)

As a general principle, major changes impacting upon any issue which might require Members to enter into any long-term arrangements or materially affecting the guidance or rulings contained in this document, should be designed to last for the lifetime of a Parliament and not changed mid-term.

1.2 Governance of the allowances

A series of resolutions approved by the House over many years set out the purpose of each allowance and contain criteria for judging the appropriateness of a claim. The Members Estimate Committee, having been advised by the Committee on Members’ Allowances, has the power to modify the provisions of the resolutions in the interests of clarity, consistency, accountability and effective administration and conformity with current circumstances. However, the Committee may not create a new charge or increase any rate of charge or payment. The Committee on Members’ Allowances has the continuing duty of keeping the Green Book under review.

Members who are contemplating incurring an expense which is large or unusual, or who are uncertain about any allowance, should contact the Department beforehand for advice.
Not all circumstances are covered in the Green Book, and the Department may be able to assist Members whose circumstances are unusual.

The Members Estimate Committee has confirmed the Department’s authority to administer the rules set out in the Green Book. The Department is expected to bring to the attention of individual Members instances where they may appear to be vulnerable to criticism or accusations of impropriety.

Where any claim appears not to conform to these principles, or to more detailed rules which apply to particular allowances, Department staff will contact the Member to discuss the claim. If the issue is not resolved, the Member may ask the Committee on Members’ Allowances to rule. If the Member wishes, he or she may ask the Members Estimate Committee to make a final determination on the ruling made by the Committee on
Members’ Allowances.

The Committee on Members’ Allowances will agree Practice Notes which will be used by the Department in administering the rules. These may be on general matters, or on matters arising from particular cases. Practice Notes will be published.

Serious cases of breaches of the rules, or of problems in implementing them, may be referred by the Department to the Members Estimate Committee.

1.3 Fundamental principles

In July 1995, the House agreed to adopt the Code of Conduct for Members of Parliament – this can be found on the internet at http://www.publications.parliament.uk/pa/cm/cmcode.htm – which includes a number of general principles of personal conduct. These are based on concepts of selflessness, integrity, objectivity, accountability, openness, honesty and leadership. The broad principles set out below are derived from the Code of Conduct and underpin the allowance regime. When making claims against parliamentary allowances, Members must adhere to these principles.

The principles are:

• Claims should be above reproach and must reflect actual usage of the resources being claimed.
• Claims must only be made for expenditure that it was necessary for a Member to incur to ensure that he or she could properly perform his or her parliamentary duties.
• Allowances are reimbursed only for the purpose of a Member carrying out his or her parliamentary duties. Claims cannot relate to party political activity of any sort, nor must any claim provide a benefit to a party political organisation.
• It is not permissible for a Member to claim under any parliamentary allowance for anything that the Member is claiming from any other source.
• Members must ensure that claims do not give rise to, or give the appearance of giving rise to, an improper personal financial benefit to themselves or anyone else.
• Members are committed to openness about what expenditure has been incurred and for what purposes.
• Individual Members take personal responsibility for all expenses incurred, for making claims and for keeping records, even if the administration of claims is delegated by them to others.
• The requirement of ensuring value for money is central in claiming for accommodation, goods or services – Members should avoid purchases which could be seen as extravagant or luxurious.
• Claims must be supported by documentary evidence, except where the House has agreed that such evidence is not necessary.

These principles recognise that, in the nature of our democratic system, Members will wish to explain their views about policies. However, public money must not be used to give unfair political advantage to one political party, and for this reason there are specific controls on particular allowances.

1.4 Applying the principles

In the majority of cases, the application of these principles will be straightforward. But the role of Members is constantly evolving and different Members have different needs, priorities and ways of performing their duties. Therefore there will always be areas of
uncertainty and the need to exercise individual judgement.

The following questions are designed to assist Members in coming to a decision about whether or not costs incurred are appropriate to be met from the allowances:

• Is this expense genuinely incurred by me in my role as a Member of Parliament as opposed to my personal capacity?
• Is this purchase supporting me in carrying out my parliamentary duties? Defining parliamentary duties is difficult but Members may wish to consider (i) the generally accepted parliamentary functions: the legislative role; the oversight and accountability role; and the representative role, including dealing with constituents’ problems and (ii) obligations they may have, for example as a small employer. Anything which is
• done for personal benefit or for electioneering or for the direct support of a political party will not be part of a Member’s parliamentary duties.
• Does the claim match the purpose of the allowance in question as set out later in the Green Book?
• Could the claim in any way damage the reputation of Parliament or its Members?
• How comfortable do I feel with the knowledge that my claim will be available to the public under Freedom of Information?