All in the Family

The Sunday Times today lays bare the behaviour of another Westminster MP - who used his family to exploit expenses - http://www.timesonline.co.uk/ - here's a summary of the paper's investigation into Labour MP David Chaytor.

MP David Chaytor used daughter in expenses scam
David Chaytor, pretended his daughter was his landlord so he could claim almost £13,000 in expenses from the Commons for “renting” a flat that he himself owned.

David Chaytor, MP for Bury North, drew up a tenancy agreement with his daughter but disguised their relationship by giving her middle name as her surname.

Land Registry records show that Chaytor and his wife were the real owners of the property and there was no reason to claim his rent from the Commons. The mortgage had been paid off.

He is being investigated by the police after it was alleged he had claimed interest payments for a “phantom” mortgage that had already been paid off.

So far Chaytor has gone along with the false assumption that his claims had been for interest. It has allowed him to brush off the discrepancy as an “error” in his “accounting procedures”.

However, a Sunday Times investigation casts doubt on the MP’s claims. It is clear that Chaytor was claiming rent rather than interest and did so by creating a false tenancy agreement with his daughter as landlord.

It has also emerged that he received expenses for renting a property from his mother, after Commons rules were introduced to prohibit MPs from claiming on homes leased from relatives.

Chaytor is a 60-year-old former lecturer who entered parliament in 1997. As an MP he can claim expenses for the cost of maintaining a second home in London or his constituency.

In autumn 2005 he told the Commons that a house in Todmorden, Lancashire, was his main residence and began claiming expenses for his second home on a flat with commanding views across Westminster.

He and his wife had owned the flat since 1999 and had paid off the mortgage in full in January 2004. As a result, he should have been allowed to claim only expenses for upkeep, running costs and necessary household items.

However, Chaytor submitted claims for £1,175 a month on his expense forms under the heading “mortgage payments (interest only) or rent”. Until now it has been assumed these were erroneous interest payments for the “phantom” mortgage, but this was not the case.

A closer inspection of his expense forms provides the first clue. In one of the forms he crossed out the words “mortgage payments [etc]” and underlined the word “rent”.

Chaytor claimed that he was renting his flat from a woman he called Sarah Rastrick. These are the first names of his daughter Sarah Rastrick Chaytor, who had recently graduated from university when the arrangement started.

Chaytor had also used the name Sarah Rastrick when paying his daughter £5,000 from his Commons office allowances for research while she was a student.

The MP claimed a total of £12,925 for his rent payments between September 2005 and August 2006. It is not known whether any rent changed hands, but his claim was paid.

He stopped the claims for rent when he bought another flat in the same block using a mortgage. While keeping the original flat, he told the Commons his new property was his second home. This flipping of homes meant he could claim more than £11,000 in stamp duty and legal fees on his new purchase.

It was one of four home flips by Chaytor in less than three years. In August 2007 he began claiming rent for another property he had designated as his second home. This cottage in the village of Summerseat, near Bury, belonged to his mother Olive, who had moved into a care home because she had Alzheimer’s disease.

The Commons had introduced new rules in July 2006 preventing MPs from claiming expenses on properties rented from relatives. Nonetheless, Chaytor claimed a total of £5,400 over the six months that he rented the flat from his mother. The relationship would not have been obvious to the Commons authorities as his mother, who died last year, had remarried and used the surname Trickett.

The police have passed a report on Chaytor, who will step down at the election, to the Crown Prosecution Service. A decision on possible charges is expected before spring. His lawyers say he should be immune from prosecution as he is protected by parliamentary privilege.

HOW CHAYTOR FLIPPED


January 2004

Chaytor pays off mortgage on Westminster flat
September 2005

Flips second home to the flat and claims £12,925 in “rent”
September 2006

Buys another flat in same block and flips second home. Claims £11,500 in stamp duty and legal fees
August 2007

Flips second home to mother’s Bury cottage and claims £5,400 in “rent”
February 2008

Flips second home to Todmorden and claims £1,500 for furnishings

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