MP's Expenses: Labour probe on Wirral MP Ben Chapman’s ‘loan interest agreement’

May 18 2009 by Staff Reporter, Liverpool Daily Post

Ben Chapman

AN investigation has been launched by Labour into claims Wirral South MP Ben Chapman was given permission by Commons authorities to claim taxpayer-funded allowances for loan interest he was no longer paying, a Downing Street spokesman said last night.

The Daily Telegraph said correspondence showed the MP sought and was given permission to reclaim the interest payments on the full value of his original mortgage despite paying off £295,000 of the loan in 2002.

He benefited by £15,000 over 10 months from the arrangement, which documents suggested was not unique to him, the newspaper said.

A Number 10 political spokesman said: “The Chief Whip has spoken to Ben Chapman. He is investigating documents provided by Mr Chapman and will seek further clarification from him and the Fees Office in the morning.”

The Telegraph, which has obtained the detailed expense claim files of MPs, said Mr Chapman had told the Fees Office he was paying off the sum on his second home in south London.

That move cut his monthly interest payments, which can be claimed back in Additional Cost Allowance, from £1,900 to £400. But Mr Chapman told the Fees Office: “By paying off capital I am forgoing interest and investment opportunities elsewhere,” the newspaper claimed.