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Speaker cheered as he unveils reforms

Michael Martin was cheered in the Commons as he unveiled "robust" reforms of expenses, just hours after saying he is to quit as Speaker. He will step down on Sunday June 21 following unprecedented criticism over his handling of the scandal which has engulfed Westminster and claimed its biggest scalp. It is the first time a Speaker has effectively been forced from office since 1695 and his shock move came just a day after he faced unprecedented challenges to his authority in the chamber after saying he was "profoundly sorry" for his part in what had happened. But when he showed no indication that he was prepared to go, a series of MPs rose to demand he stand aside or allow the vote of no confidence that was gathering support among MPs. After Mr Martin's brief emergency statement about quitting his job to a packed Commons earlier on Tuesday, talks were then held on the crisis with Prime Minister Gordon Brown, Tory leader David Cameron and Lib Dem leader Nick Clegg. Hours later, Mr Martin made his second statement to the House which said claims for mortgage interest or rent on second homes would be capped at £1,250 per month and announced proposals to "tighten up" the administration of the system with a "reasonableness" test to block dubious claims. He told a full House that all parties are now committed to accepting the recommendations of Sir Christopher Kelly's Committee on Standards in Public Life. A paper produced by Mr Brown calling for a "fundamental reform" of allowances with regulation by an independent body was also endorsed by leaders. Mr Martin said: "We have today agreed a robust set of interim measures which will take effect at once and do not pre-empt any more substantial changes to be put forward by the Kelly Committee." When he sat down after making his statement, sympathetic Labour MPs broke into spontaneous applause as Mr Martin handed over to deputy speaker Sir Michael Lord. The measures Mr Martin announced include a ban on claims for furniture, household goods, capital improvements, gardening, cleaning and stamp duty for MPs' second homes. Only rent, hotel accommodation, overnight subsistence, mortgage interest, council tax, utility bills and insurance will be permitted. MPs will also be barred from "flipping" their second home for 2009-10 unless an appeal is granted in "exceptional" cases and they will have to be "completely open" with the tax man about whether a property is a second home and liable to capital gains tax (CGT). They will also have to make a declaration that any property they claim on "is not and will never be" their main home for CGT purposes and any couples must nominate the same main home and will only be eligible to claim one person's accommodation allowance between them. Meanwhile, mortgage claims must be accurate, for interest only and on a continuing loan. Mr Martin also confirmed that all claims under the additional costs allowance scheme over the last four years will be re-examined by a team with an external manager. On Wednesday, Commons Leader Harriet Harman will make a statement on the proposals, giving MPs a chance to "air their views". Earlier, during his monthly press conference at No 10, the Prime Minister said major changes are needed to the way Parliament is run to end "all the misuses and misjudgements of the past" and said Westminster can no longer operate like a "gentlemen's club". He said the system needs to move from self to independent regulation and that any Labour Party member found to have defied the rules would not stand at the next General Election. Mr Martin's announcement comes as Tory MP Douglas Hogg said he will not stand at the next election, following controversy over his own expenses.

ITN | May 19, 2009Watch more videos from ITN

Tags:. .robust. .unprecedented. .westminster. .profoundly. .mps