Zoom Meeting - Mike Warburton

Mike has visited us on at least three occasions now and, as always, he gave a most interesting, informative and entertaining talk.  Having been a tax partner at Grant Thornton in Cheltenham for many years, he is much in demand  by the media to give an expert view on tax matters and regularly appears on BBC programmes, including Moneybox and Radio Gloucestershire, as well as in the press and elsewhere. 

In 2007 the expense claims of MPs were leaked or stolen and offered to the press for £300,000.  Interestingly, the Times refused to buy them as they were ’stolen’ and the Mail’s offer was declined as they only wanted to expose the Labour MPs!  The Daily Telegraph accepted and set up a team to study the four million documents and complete the investigation and exposure.  Mike was asked to join their team; hence his excellent and accurate knowledge of the outcome.  

As a test of the accuracy of the information they released Jacqui Smith’s claims, which included hiring some blue movies!  It later transpired they had been rented by her husband without her knowledge. 

At this point the MPs, led by Speaker Michael Martin, tried to put through legislation to block the publication, but this was defeated in the Lords.  Forty MPs, including Harriet Harman, then rapidly and secretly repaid their wrongly claimed expenses.  

There had been a feeling amongst MPs that they were underpaid and that one way to redress the balance was to make the expense claims.  Incidentally, the famous ‘duck house’ claim was made, but it was not paid as it was considered to be laughable. 

The largest claims involved the second homes in London that MPs can legitimately claim for: but many had over-claimed and some had even claimed for mortgages that did not even exist!  It was this latter group of six MPs who were subsequently prosecuted and imprisoned, along with two members of the House of Lords.  

In all, sixty MPs were exposed, but the other six hundred members were found to have largely claimed legitimately.  However, the reputation of our legislators was seriously damaged by the affair and there was huge anger at the time (and still is).  When Mike stated on Radio 4 that expenses incurred to prepare tax returns were not claimable (which many MPs had done) he was personally challenged by No 10.  But, as we all know, they had to back down when Mike cited the relevant legislation.  

This was a fascinating talk about corruption in high places.  It goes without saying that it can always happen unless those who may be tempted are robustly monitored.   

Our thanks go to Mike for telling us all about it and I will very happily ask him along again for one of his other talks.  

Bob Paterson