The former Department of Work and Pensions Minister and now Justice Minister has been reported to the authorities for graft
Chris Grayling claimed for London flat despite nearby constituency home: MPs expenses
Chris Grayling, the shadow home secretary claimed thousands of pounds to renovate a flat in central London – bought with a mortgage funded at taxpayers’ expense, even though his constituency home is less than 17 miles from the House of Commons
By Holly Watt and Gordon Rayner
7:15AM BST 11 May 2009
Mr Grayling, who represents Epsom and Ewell, lives in a large house in Ashtead, Surrey, but also claims expenses for a flat in Pimlico, near the House of Commons. Mr Grayling also owns other buy-to-let flats and now has four properties within the M25.
The disclosure is particularly embarrassing for the Conservatives as Mr Grayling is the party’s “attack dog” who has criticised a series of Labour ministers implicated in sleaze scandals.
Within weeks of first being elected in 2001, he bought a flat in a six-storey block for £127,000. In 2002, he set up an unusual arrangement with the Parliamentary Fees Office, claiming £625 a month for mortgages on two separate properties, both the main home and the new flat in Pimlico. This is usually against the rules, but Mr Grayling negotiated an agreement because he was unable to obtain a 100% mortgage on the London flat that he had bought.
This arrangement ended in May 2006.
Over the summer of 2005, Mr Grayling undertook a complete refurbishment of the flat. Shortly after the general election in May, Mr Grayling claimed £4,250 for redecorating and £1,561 for a new bathroom.
During the 2005-06 financial year, Mr Grayling claimed close to the maximum allowance for MPs.
However, in the following financial year he continued to submit receipts for the work that had been carried out the previous year.
This effectively allowed him to spread the costs over two years – whereas he would have been unable to claim all the costs in the 2005-06 financial year. For example, in June 2006, Mr Grayling submitted an invoice for £3,534 for service and maintenance on his block of flats, which included a service charge of £1,148 and a “balance brought forward” of £1,956.
This was paid by the House of Commons authorities in the 2006-07 financial year, although the invoice refers to “Tax point: 22 Feb 2006” and refers to costs carried out in the 2005-06 financial year.
A handwritten note on the invoice informed the fees office to “Please note this has only just been issued, date notwithstanding.”
In July 2006, Mr Grayling submitted a claim for £2,250. The invoice from the decorator was dated July 2006, and referred to “remedial and refurbishment works July 2005”.
On the claim form, Mr Grayling stated: “Decorator has been very ill & didn’t invoice me until now.”
If the various late receipts had been submitted in the 2005-06 financial year, they would have exceeded Mr Grayling’s second home allowance for the 12-month period by over £4,700.
However, they were still paid by the Fees Office.
Mr Grayling has a sizeable property portfolio. The Pimlico flat, which is only a short walk from the Commons is believed to have risen in value despite the recession. A studio flat in the same block is currently on sale for £235,000.
On the Parliamentary register of interests, Mr Grayling declares that he rents out two further houses that he owns in London.
The family home he shares with wife Sue and their two children in Ashtead is inside the M25 and in the heart of Surrey’s commuter belt. The imposing house with its sweeping drive and grounds cost £680,000 in 2000.
Mr Grayling defended his claims last night and said that using one of his existing properties would not have saved the taxpayer money. “I needed two loans to buy my London flat in 2001,” he said.
“One was the standard maximum loan available for a second property and the second was to pay for the 20 per cent deposit. In addition to serving my constituents, I have spent several years serving in the shadow cabinet, currently as the shadow home secretary.
“A second home enables me to meet those commitments. I have always been entirely open to my constituents about this.”
Commenting on why claims for renovating the London property were submitted a year late, he said: “These claims were made at the point which I received the invoices. I made this clear to the fees office at the time.”
- Chris Grayling
Job: shadow home secretary
Total second home claims