Kelly's Report is no surprise - and Levitt survives (for now)

Today was the official launch of the report by Sir Christopher Kelly into MPs' expenses. After the leaks last week, there are few surprises from what we already knew.

What has been clarified is that the changes will be phased in over the next five years. So they will only affect Tom (& Teresa) Levitt if Tom manages to retain his seat at the next election - something which we imagine not even he will be banking on (if you pardon the pun).

In addition, there is some clarity regarding capital gains tax. In future, any gains have to be refunded to the exchequer - so Levitt at last learns about that which he had sought clarification back in May in Parliament. Whatever profit Levitt has made through his 'legal tax dodge', he gets to keep.

Back in his constituency, we understand Levitt faced more anger and discontent at last Friday's Constituency Labour Party meeting. Despite the rising discontent, we understand that Labour Party rules do not allow the local Party to deselect Levitt as the candidate in the next election due to the proximity of the General Election.

Whether or not anyone in the local Party will campaign for him next year is another matter.

Sir Christopher Kelly takes the wheels off Levitt's gravy train

Details of the much awaited report into MPs expenses by Sir Christopher Kelly have started to emerge before it is published next week. And the revelations should give Tom Levitt cause for concern (that is if he seriously thinks he stands a chance of being re-elected). The recommendations so far revealed would affect Levitt as follows:

Second homes can only be rented in future, and not have the mortgage interest costs covered: as we know, Levitt has always claimed for his second home in Lambeth. Under the new proposals, if he remained an MP he'd have to sell that home within 4 years.

A ban on MPs employing family members: Levitt employs his wife, Teresa, as his 'Parliamentary Assistant' and also his stepdaughter, Victoria Fletcher, as a part-time junior secretary. If Mrs Levitt is as good at her job as Tom insists*, we wish her luck in her search for employment with another MP when Tom is dumped by voters in the High Peak next year.

One thing that won't change, according to the Telegraph, is the limited scope of the ongoing Legg inquiry in failing to examine the capital gains tax dodge that Levitt has taken advantage of. This is supposedly the doing of the new Speaker, John Bercow, who took advantage of the tax-dodge himself. Whether the Kelly report closes that loophole is another matter that should concern Levitt, as we pointed out last week.

In the meantime, there is a meeting of the Constituency Labour Party (CLP) this Friday (30th October), and we've no doubt that the capital gains tax issue will be on the agenda. Councillor Anthony McKeown, the secretary of the CLP and previously a Levitt loyalist, has already openly criticised Levitt over his behaviour regarding the Legg letter, which is presumably a bad omen for Levitt if not a move towards a Putsch. Will the CLP have the bottle to consider deselecting Levitt, as we have called for them to consider before, or do they wish to share his fate come the election next year? We'll see.

*when this link no longer works, try this screen grab