Britain to curb lawmakers' expenses after scandal

By Keith Weir

LONDON (Reuters) - Britain unveiled plans on Wednesday to curb perks for lawmakers after a scandal over excessive expense claims shocked taxpayers and undermined public trust in all the main parties.

The shake-up is designed to assuage public anger after disclosures that members of parliament (MPs) clawed back the cost of everything from pet food to cleaning out a moat.

A general election is due by next June and the three main parties fear that disgruntled voters will switch to fringe parties or back independent candidates in protest at the antics of MPs.

The opposition Conservatives are forecast to defeat ruling Labour in the election and return to power for the first time since 1997. However, the expenses scandal has added an additional element of uncertainty to the outcome.

An independent committee led by former civil servant Christopher Kelly recommended that MPs should no longer be allowed to employ members of their family at the taxpayers' expense.

Kelly also said parliamentarians should be prevented from using their allowances to reclaim mortgage interest costs on second homes -- a practice that allowed some MPs to cash in on rising property prices.

"Revelations about the expenses system have caused considerable damage," Kelly said, urging MPs not to try to dilute his proposals.

"I do not believe that trust in those who govern us will be restored unless those in authority show leadership and determination in putting abuses of the past behind them, however uncomfortable that may be for some."