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Calls to scrap MSP mortgage allowance

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Published Date: 21 May 2007
PRESSURE was growing yesterday to scrap the Edinburgh accommodation allowance after it was revealed ten former MSPs could gain more than £1 million from the scheme.
Under current rules MSPs who live more than 90 minutes drive from Edinburgh can claim back money on mortgage payments as part of expenses - allowing them to make a profit when the house is sold.

Yesterday, it was revealed ten MSPs who resigned or failed to regain their seats are set to make £1 million profit from the scheme.

Tommy Sheridan, the leader of Solidarity, called for the scheme to be scrapped.

The last Parliament recommended a review but the new one is still to decide.



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1

Chef,

20/05/2007 23:24:08

Read post 11

http://news.scotsman.com/topics.cfm?tid=53&id=370792007

2

One-man-bucket's older twin,

20/05/2007 23:44:21

Turn Dumbiedykes into a hall of residence for the bu99ers, and let them stay there for a peppercorn rent.

3

BW2,

Everywhere 21/05/2007 01:19:17

I hope they all declare it to the TAX man.

http://williambeck.blogspot.com/


http://shirleymckie.myfastforum.org/sutra34.php#34

4

Harriet,

21/05/2007 05:30:48

Tommy Sheridan has some cheek. For years he actually had the largest mortgage paid for by the public purse.

The SSP HQ at 70 Stanley Street, Glasgow had its mortgage paid for by the public purse at a rate of some £1,800 every month. That was a higher figure than any other MSP.

Found out again Tommy on this as by the electorate on everything else.

As for the calls for MSPs to pay tax on all this. They do - at 40%.

And MSPs who have a house cost the taxpayer, on average, £20~£25 per night LESS than those who make other arrangements such as staying in a hotel.

5

Macuistean,

Isle of Tiree 21/05/2007 05:58:55

Build a block of flats and have all who need it stay there and charge them rent.

6

Solidarity supporter,

Edinburgh 21/05/2007 06:30:49

Harriet you should get more sleep and restrain your fevered imagination, the SSP HQ was purchased by a mortgage and a loan paid for by Tommy Sheridan and Rosemary Byrne taking out a loan and repaying it by the donation of half their wages each month, all the SSP MSPs only took half their salaries and none purchased properties in Edinburgh unlike MSPs from every other party.
Why dont you focus on the real scandal of MSPs with their snout in the trough or are you a friend of one of those being exposed!

7

Cadgers,

Perth 21/05/2007 07:09:38

Jeez give them a lilo and a sleeping bag, they can sleep in their offices, they've got everything else at hand.

8

JayJay,

Glasgow-ish 21/05/2007 08:21:06

Some of the justification provided by these MSPs for their guzzling at the trough simply defies belief. Again, as with Mr Lindsay in east Lothian, they appear blissfully unaware that, outside their strange little world, there are real people with real issues.
I don't doubt someone from Aberdeen, or Shetland or wherever will find it difficult to "commute to edinburgh". However, we have guys from Renfrew here taking advantage of what they clearly see as a perk.
Now, I am sure many of us will be aware of people who have no difficulty commuting from Ayr to Edinburgh on a daily basis. Not for them generous incentives from their employers. MSPs, who I believe do rather better than 4-weeks paid holiday, have some nerve.
Broonie talks about "restoring trust" in politicians. After the vote on expenses at westminster, and this nonsense, he's off to a flyer!

9

Gizzabreak,

21/05/2007 08:58:00

I believe the Dumbiedykes option has been mentioned before and is far and away the best one.

Or are our MSPs too grand to live in accommodation meant for the proletariat??

10

Miss H,

21/05/2007 09:50:15

Er people actually live in Dumbiedykes you know. What are you going to do? Turf them out their houses so the MSPs can move in?

11

bill inch,

edinburgh 21/05/2007 11:35:06

They should build accomodation for them that would be the cheaper answer. Until of course they voted in A free resturant bar Creche etc.

12

williamx,

Delta, Canada 21/05/2007 12:48:47

Our guys in Ottawa rent their own apartments out of their wages. Like yours they have an excessive pension plan and that is good enough.

13

petrol head,

Edinburgh 21/05/2007 15:29:03

#6:

OK so if what you say is true:-

They only drew half their salaries. That gives them approx £25K per year each.

The both pay a half share of the £1,800 per month mortgage. That's £10,800 per annum.

That leaves them each £14,200 per annum (£8,520 after 40% tax) from which they have presumably got to find money for their own mortgages and support their families. Unless their spouses have a decent income, I'd say that is impossible. Wouldn't you?

Like all socialist/communist ideals, the figures just don't add up if you stick to the principles that you advocate.

It is a good job that extremist parties like these were voted out on 3rd May.

14

petrol head,

Edinburgh 21/05/2007 15:35:28

Sorry, cock-up in the figures there.

£40k - 40% tax is £24k
Minus £1,800 per month leaves £13,200 each

Still not a proper living wage these days is it?

15

Stuart W,

21/05/2007 21:35:52

Petrolhead, I'm not sure about the details, but isn't it the case that the mortgage on the property is paid out of the full MSP's salary (and presumably other party running costs as well) thus in actual fact the members are left with £26k or so as their salary?

And since the first £5k or so of earnings is tax free and the £21k taxable wouldn't even be enough to attract the 40% band then the deductions would be nothing like you claim.

With National Insurance they'd probably be looking at an effective tax rate of about 30%, thus about £6k or so on the £21k taxable.

Therefore their take home pay would be around £20k a year, which isn't bad.


 

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