Paying MPs more and abolishing their allowances could be a way to end controversy over parliamentary expenses, according to Kent Labour MP Derek Wyatt.

The Sittingbourne and Sheppey MP said one way of resolving the problems associated with expenses would be to increase salaries and for any expenditure on things like paying office staff and second home allowances to be independently audited and published.

His comments come in the wake of another row engulfing MPs after it emerged employment minister Tony McNulty had claimed second home allowances for using his parents’ north London home.

Mr Wyatt said: "When we had the last fiasco, I suggested MPs receive £200,000 a year and that each year on the same day, every MP publish audited accounts that are in the public domain. If the taxman has signed it off, they should all be available."

MPs would have to pay staff and meet the costs of renting a second home from their allowances, he added.

"We would then effectively be running a small business and paying our own staff, which is what we should be doing, and publishing everything in the same way as everyone else."

He defended the system which allowed for MPs to claim second home allowances, saying it was not practical for many to try and travel to and from their constituencies every day.

"I have tried that. I was getting home at past midnight, then having to get up early to travel to meetings."

Chatham and Aylesford MP Jonathan Shaw said it was important steps were taken to restore confidence in the system.

"I am relaxed about having an inquiry [into MPs' allowances] if it arrives at a situation which increases confidence in the system. Each individual has to make a decision about what they are claiming and whether it is within the spirit of the rules."

In the face of the latest revelations, Gordon Brown has asked the Committe on Standards in Public Life to review the system of MPs' expenses.

~ KM Group political editor Paul Francis's blogs on this issue >>>