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Under-fire MP writes letter of explanation

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Published Date: 17 June 2009
Underfire MP Brian Binley has written to constituents explaining his decision to claim £57,000 in expenses on a flat he rented from his own company.
Here is the text of the letter in full.

"I have enclosed a copy of a statement I have issued which outlines the facts as I see them. In addition I might tell you that I was a late entrant into Parliament and didn't want to lumber my wife who is 18
years younger than me with a sizeable mortgage, recognising that at my age things could go wrong. Because of this my fellow directors were willing to take out mortgage taken by my company was perfectly legal at the time I pursued that as an objective and ideal solution.

"Thereafter the company took out a £345,000 interest only mortgage on a basic flat in Pimlico, which had a monthly repayments of £1600 which was sizeably more than the £1500 I was paying in rent especially when one takes into account that it included, all the furnishings in the flat, it also paid for water rates, Council Tax, lighting and heating charges, furthermore I paid for the cleaning myself.

"In other words it didn't cover the company's cost, especially when you take into account that the fact the company paid £12,000 in stamp duty £9,000 for furniture, white goods etc and £4000 in legal costs.  It is true that they hoped the flat would increase in value but ironically that hasn't turned out to be true either, but I'm sure that won't break your heart.   In other words there was no material benefit to my company which simply helping me to do my job as an MP.

"The rules situation is a difficult one, not least when you realise we have experienced five different major rule changes in the four years I have been in the House of Commons but I objected to being forced to move out of a long term contractual arrangement especially when it would cost the tax payer more money and I appealed that decision, which I'm sure you will agree I had a right to do

"Unfortunately that appeal took longer than I would have wanted but that was out of my hands.  Eventually the appeal was finally rejected and I abided by the rules of the fees office and found myself another flat which is now costing £365 per week and doesn't include council tax water rates gas or electricity hence creating a greater cost to the public purse, which disturbs me.

"I hope the above is helpful to you and if you feel you can tell me what I've done wrong I would be very grateful, it really would be helpful, because in truth I can see no way in which I have."



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  • Last Updated: 18 June 2009 2:28 PM
  • Source: n/a
  • Location: Northampton
 
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1

,

17/06/2009 14:57:59
Comment Reported Unsuitable By User
2

A Northampton South voter,

Northampton 17/06/2009 15:14:19
On 15th May Mr Binley stated that he had never bought anything on expenses for his flat including white goods, furniture, crockery and linen etc.

What he didn't go onto say was that he didn't need to because HIS COMPANY was providing this in the rent he was paying to them (him).

In the 15th May statement he was at best very economical with the facts as he didn't mention renting the flat from his own company.

If he is ecomonical on this what else has he omitted?

He claims that MPs are not paid enough to do the work they have to. But did he not check on the salary before he "applied" for the job.

In any event wouldn't the other income he receives from this business interests be able to go someway in keeping him well above the breadline. Perhaps his wife could "chip in" to help run the household.

Mr Binley might have "working class roots" but he seems to have left them behind sometime ago.

Do the decent thing Mr Binley:- resign now and lets have a by-election now.

3

Spirit of Bradlaugh,

17/06/2009 15:37:42
Why buy a £345,000 flat at a cost of £1500 a month to the taxpayer when flats in Pimlico are available for rent from £700 a month upwards? Why buy at all? There is no risk then to him or his wife.

Why ask for £1500 a month if the repayments were £1600 a month? After all its hardly a sizable difference as Mr Binley states.

Isn't renting a furnished flat with tax payers money with £9000 spent on furniture and white goods a complete turnaround on what he said a few weeks ago?

"I have not spent a penny of tax payers money on Furniture not one plate or item of crockery"

Well if he was paying £1500 a month to rent them then yes he was.

Was the flat bought by the company from pre taxable profit? if so it could be seen as a tax loss which the chairman of the company benefited from?

And if the company cannot show why it needed to buy a flat which it then couldn't use as the Chairman was using it for his own personal outside interest then isn't that at least poor business sense if not something else?
4

tish,

northampton 17/06/2009 15:53:21
absolute rubbish, he will resign if he has any shame
5

Pallionlad,

Northampton 17/06/2009 17:22:20
Binley is as deceitfula it gets he should either resign or be kickeed out both the party and parliament.
Why did he need a flat anyway?? there are hundreds of people who work in London who commute daily from Northampton, or even further.
If there were some exceptional circumstances he could have stayed in a Hotel and legitimately claimed the expenses.
The Inland Revenue should also be involved as there may be some Tax avoidance issues also the police with possible fraud being the case.
6

elf garnett,

eastfield 17/06/2009 17:25:34
Democracy;
Is getting a very bad name
No matter how you vote
They are all the very same

I believe our Country needs a new direction.
7

wootton tory,

wootton 17/06/2009 18:00:57
I think BB has managed this in the usual politician's approach which is to ignore the crucial question. I suspect he is just one more MP who realised ( shortly after entering parliament)that there was a gravy train expenses system in place which meant he (via his own company)could invest in property at the publics expense and hope to reap significant return at virtually no risk.

One wonders if new boys like BB were given an induction class in what they could take advantage of??

Where do we the taxpayers get our share of such investments??

It galls me to say that BB may not have done anything according to the rules at the time he did it - but he should pay back the monies from the time the game was up.

He cannot escape the charge however that he is just one more MP who has been found too ready to take advantage of the sloppy rules.

What the MP's don't realse is that voters are so angry simply because they don't like being made mugs of.
Actually - they do get it all too well and simply come out with dross to defend themselves.
8

TheCountOfNowhere,

NH 17/06/2009 18:45:02
It's about thime these thieving rates were taught a lesson.

Every one of them thats been on the fiddle should be locked up.

Mr Binley...no matter how you justify it to yourself...you are wrong...you have taken from the people you are there to serve. It's morally wrong and should be legally wrong.

At a time when we are all struggling how can these people get away with this !!!

No wonder they all have made house prices so high, so they could make a bob or two at our expense. They must all be laughing up their sleaves at us.

BOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO.

THEIF THEIF THEIF THEIF THEIF THEIF THEIF THEIF THEIF THEIF THEIF THEIF THEIF THEIF THEIF THEIF THEIF THEIF THEIF THEIF THEIF THEIF THEIF THEIF THEIF THEIF THEIF
9

mack69,

Northampton 17/06/2009 18:53:05
Well done Mr Binley I know now why my e,mail was not opened along with hundreds of others when we had a problem with local services and he was still wearing two hats (1)as M.P (2) as a County Councillor he was tucked up in his London flat
Like another scribes writes why not catch the train home it only takes 55 mins
Oh sorry I forgot he had to get to Heathrow for an early start for his trip to the Falklands another waste of tax payers monies
10

Notty,

17/06/2009 19:14:44
Why is everyone so suprised, he is an MP after all. Anyone looked at Ms Keeble's expenses. That also makes very interesting reading.
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