Jun 2009 15

New Research: Solve the Second Homes Crisis: House MPs in the Olympic Village10

  • Current plans are for the Olympic Village to leave behind a legacy of 3,000 new homes.

  • The Olympic Village project has failed to attract the private financing expected and as a result, the project has been nationalised.  That means there would not need to be any significant new capital expenditure in order to house MPs in the Olympic Village.

  • The Additional Costs Allowance, which cost taxpayers over £11.5 million in 2007-08 and damaged the reputation of Parliament could largely be abolished.

  • This scheme has been adopted in Sweden, where the Parliament owns around 250 apartments for its representatives.

Recent weeks have seen growing public outrage over MPs expenses and allowances system. Too many MPs are using the parliamentary allowances system to pay off their mortgage, causing resentment in taxpayers around the country and a black hole in the public purse. One solution is to provide government owned accommodation for those MPs whose constituencies are outside commuter range. 

That would prevent a recurrence of scandals when MPs make profits from selling homes financed with taxpayers’ money.  The TaxPayers' Alliance can today reveal figures showing that housing MPs in the Olympic Village would provide a solution that is both cost effective and, equally as important, would prevent future abuse of the taxpayer funded allowances system, helping MPs to rebuild public trust in Parliament.
 
The full report can be downloaded here (PDF).
 
Key Findings

  • Current plans are for the Olympic Village to leave behind a legacy of 3,000 new homes.

  • The Olympic Village project has failed to attract the private financing expected and as a result, the project has been nationalised.  There would not need to be any significant new capital expenditure in order to house MPs in the Olympic Village.

  • The only outside financing for the project comes from the social landlords Triathlon Homes, who are expected to pay £268 million for 1,400 affordable homes.

  • That provides a market value for obtaining homes in the Olympic Village of roughly £191,500 per home, a similar bill per home would mean that obtaining permanent homes for use by all 572 MPs outside London would cost £110 million in foregone earnings from selling the homes to private or social developers.

  • This would be offset by an increase in the value of the remaining, roughly 1,000, homes in the Olympic Village.  Those homes would likely see a significant increase in price, which would increase the value returned to the taxpayer when they were eventually sold. 

  • This scheme has been adopted in Sweden, amongst others, where the Parliament owns around 250 apartments for its representatives.

  • The Additional Costs Allowance cost over £11.5 million in 2007-08 and could largely be abolished, though significant payments would still need to be made for expenses associated with maintaining a second home such as council tax and utilities bills. 

  • Within a decade – the span of two parliaments – it would be reasonable to expect that savings under this scheme would recoup any costs associated with not selling the homes.

  • As the Olympics forms a major terrorist target the Olympic Village will already need to be built with security in mind.  Housing MPs in a single location will make it easier to arrange a variety of services. 

 Matthew Elliott, Chief Executive of the TaxPayers’ Alliance, said:

“We have been paying for MPs’ to build their property empires for too long. It is clearly necessary to consider radical proposals to ensure that we don’t continue haemorrhaging taxpayers’ cash every year.  Money is tight, so taxpayers won’t want to see large amounts spent buying second homes for MPs when they are struggling to pay their own mortgages.  Using the Olympic Village after the Games are over, which is already being built at the taxpayers’ expense, would offer an affordable and sustainable way forward and aid the regeneration of the East End.”

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  • Geoff Stephenson

    It’s a great idea that Parliament should own flats for MPs who live outside cummuting distance, and the Olympic Village is a good idea if no other buyer can be found for the accomodation there. However in your press relese you suggest that MPs could share a car. Why? It only takes 25 minutes on the Jubilee line from Stratford to Westminster.

  • Kenneth La Garde

    Why not expand this to cover the House of Lords and thereby further reduce the costs of Parliament for us Taxpayers !!

  • Soren Lorensen

    The costs of security have been glossed over in the report. Concentrating nearly 600 MPs in one area would require a large security presence, 24 hours a day, 365 days a year (like there is at Parliament and Portcullis House). Had the author considered the costs that the security presence during the Olypics for that site would incur and then extrapolated those costs for this plan, this omission could have been avoided. As it is, it just looks sloppy.

  • http://www.jamesbarlow.co.uk James Barlow

    Get some bunk beds and you can cut the bill in half again.

  • http://www.poshtory.com Posh Tory

    An excellent idea – would have to improve the night buses to cope with all the out of hours sessions that MPs have to go through!

  • S Smith

    Security wouldn’t be a problem. Build a wall around the village. In the UK we have an institution called the Army; tough bunch like guns. A battalion could be stationed next door.
    Further I think local authorities should provide a house for the local MP. And secretarial support too.

  • H Blears

    Some fantastic suggestions there.
    Security should certainly not be a problem; with the introduction of these new 5mph T3 motion eco friendly buzzing things for the bobbies im sure we can afford to chip in to pay 2 of stratford’s finest bouncers to marshall the walls. xxx

  • STEVE JONES

    For starters, cut the number of useless MP’s and Peers in half. After all, they all have about 3 months holidays a year as it is.
    Also, with a bit of luck, these shameless parasites should have less time to fiddle their expenses………………….. Whoops, sorry, I just saw a flying pig.

  • Mrs angry

    What is the point in having any opinions on this subject the parasites involved will just vote against it as per the blacking out, its time we as the tax payer stepped up and SHOUTED loudly that we are sick of being taken for fools, we need someone to run the country are these fools fit for purpose, I think not!

  • B Lockwood

    Absolutely correct Mrs Angry.
    I also applause The TaxPayers Alliance for their reports and being on the Ball’with their New Standing on our need for JUSTICE within Courts ( no matter the costs, make Bankers and Politicians cover these.)
    Courts are quick enough to issue us with Liablility Orders when we can ill afford bills and Taxes.
    I fail to see how politicians think the public are going to cope with our Countries
    future Debts once Mr Brown and family along with others have fled the past.
    Barbara Norwich