MPs' expenses to be curbed

By Keith Weir

LONDON (Reuters) - An independent committee led by former civil servant Christopher Kelly recommended on Wednesday that MPs should no longer be allowed to employ members of their family at the taxpayers' expense.

Kelly also said MPs should be prevented from using their allowances to reclaim mortgage interest costs on second homes -- a practice that allowed some MPs to cash in on rising property prices.

"Revelations about the expenses system have caused considerable damage," Kelly said, urging MPs not to try to dilute his proposals.

"I do not believe that trust in those who govern us will be restored unless those in authority show leadership and determination in putting abuses of the past behind them, however uncomfortable that may be for some."

Prime Minister Gordon Brown said he accepted the report and expected a new Independent Parliamentary Standards Authority (IPSA) to implement it.

"We need a new system to re-establish trust. IPSA will set to work immediately and we expect they will proceed swiftly to put these changes into effect," Brown said in a statement.

MPs earn about 65,000 pounds a year -- more than double the average British salary but well below the earnings of professionals like lawyers and doctors.

Kelly said a confusion between pay and expenses was one of the causes of the scandal.