YORK’S MP Hugh Bayley today defended more than £100,000 in expenses claims for his two homes after being publicly challenged by political opponents.

Speaking exclusively to The Press, Mr Bayley revealed details of second-home allowance claims made since 2003 initially on his London home, estimated to be worth up to £1.1 million, and then on his York home, believed to be worth around £460,000.

The politician, who claims on average £18,000 a year in mortgage interest relief from the taxpayer, purchased a £625,000 Victorian terraced house, near the Tate Gallery, as his second home in 2003 for “personal reasons”.

Two years later he transferred the £350,000 mortgage – and taxpayer- funded mortgage relief – to his fully paid-for York property. Mr Bayley volunteered the information after York Conservative councillor Paul Healey called on the politician to hold a public meeting and explain his expense claims to constituents.

MP challenged on home claims

POLITICAL opponents today challenged York MP Hugh Bayley over expense claims for his York home.

The Labour MP has been claiming back £350,000 in mortgage interest on the riverside property since re-designating it as his second home in 2005.

Tory councillor Paul Healey called on the MP to hold a public meeting, at which he could allay his and constituents’ concerns about expenses and the transferring of his second-home allowance from London to York, costing about £100,000 since 2003.

Coun Healey, a Conservative councillor for Rural West York, said: “The second-home allowance is to pay for costs wholly, exclusively and necessarily incurred to enable him to stay overnight away from his main home for the purpose of performing his parliamentary duties. It’s not meant to subsidise the mortgage on his London property.” Liberal Democrat councillor Christian Vassie, who is standing against Mr Bayley at the General Election, also queried the claim.

But Mr Bayley insisted today that the claim was fully in accordance with advice from the House of Commons finance department, and he had adhered scrupulously to the rules.

Speaking in detail for the first time, he revealed to The Press how he had transferred a £350,000 mortgage from his London home to his York property in 2005, after re-designating York as his second home.

He said that, having owned a flat in London since before he became an MP, he had bought a Victorian terraced house in the capital in 2003 – costing £625,000 – with a mortgage of £350,000, having put his entire savings and the profit on the flat sale towards the rest of the cost.

Mr Bayley, who won the last election with a 10,000-strong majority, said he had needed a house for “personal reasons” and stressed that he had paid more than £30,000 in Capital Gains Tax when he sold the flat as a second home. In November 2005, on the advice of the department, he had re-designated York as his second home, because burgeoning London workloads meant he was spending less than half his time in his constituency.

“After the last General Election, I became a House of Commons committee chairman, and I was appointed to represent Britain at the NATO Parliamentary Assembly, which usually meets at the weekend and other times when Westminster is not sitting,” he said. “As a result of these extra jobs, I now spend about 160 days a year in York.”

He said he had then transferred the entire £350,000 mortgage across to his York home, which had no mortgage at that time. He said the department had advised him he could do this, since it was clear the mortgage was taken out to pay towards the cost of a second home. He said it was an interest-only mortgage. His York home is currently valued at around £460,000.

His London home is currently valued between £850,000 and £1.1 million.

He said he would not need two homes if he was not an MP, and he was not rich enough to own two homes outright. He had not claimed a penny in public money for furniture, fixtures or fittings.

Asked about Coun Healey’s challenge to hold a public meeting, he said: “I hold a regular surgery at which constituents can raise any concerns. Some constituents have contacted me about expenses and I have responded to them.”

What the House of Commons rule book says

A SPOKESMAN for the House of Commons department of resources said it could not comment on individual MPs’ expenses claims.

But he said that the “green book”, Guidance For Members On The System Of Parliamentary Allowances, stated: “If you own more than one home, your main home will normally be the one where you spend more nights than any other.” The book said it was MPs’ responsibility to inform the department of any main home changes.

He said the allowance paid for the interest element of the second-home mortgage. “If the designation changes because of work pattern changes, Members would be able to claim on the other property,” he said.

“Members have to provide documentation about their mortgages.

“There is nothing in the rule book about the transfer of mortgages. The House is concerned that claims fall within the rules.”

Photocopying bill explained

HUGH Bayley has explained why he made an expense claim for £238.88 headed: “City of York Labour Party– Photocopying.”

He said the amount did not relate to photocopying carried out on behalf of the Labour Party, as was suggested to The Press by one reader. Instead, it related to Parliamentary photocopying work he had carried out on equipment belonging to the party, for which he had been charged at cost price – only 0.5 pence a sheet – which he had claimed back.

Mr Bayley said MPs were expected to operate like a small business, paying for accommodation, staff, equipment, heating and lighting, and then claim costs back. He had argued for some time that Parliament should instead administer and pay for such matters directly, so they would no longer appear as “expense claims”.

Interest claims

FIGURES released by Hugh Bayley last month showed between March 2007 and February 2008, he claimed a total of £18,849 in interest payments for the £350,000 mortgage on his York home. Mr Bayley said today the average claim per month was about £1,500, but the amount rose and fell in line with changes in interest rates, as he did not have a fixed rate like some other MPs. He made no claims at all in some months, because the maximum claimable had been reached.

How it all unfolded

• 1992: When he becomes MP, he already owns York property and flat in London.

• 2003: Sells London flat and buys house for £625,000 using savings and profits from flat sale, plus £350,000 mortgage with interest paid by state.

• 2005: Re-designates York property as his second home, and his London house becomes his main home. Transfers mortgage across to York home.

• 2009: Defends expense claims after being challenged by political opponents.