LORD Rennard of Wavertree was forced to defend his second home expense claims last night.

The Liverpool-born Liberal Democrat peer claimed more than £40,000 for a second home despite owning an apartment less than two miles from Westminster.

He apparently used the cash to pay for a holiday home in Eastbourne, Sussex.

Neighbours there reportedly see him only occasionally and refer to him as the “holiday-home man”.

Lord Rennard, who is the Lib-Dem’s chief executive and a close friend of former Liverpool City Council leader Mike Storey, is only the latest politician to be caught up in the storm over Parliamentary expenses. He has now called for a “transparent taxable allowance” for members of the House of Lords.

The Blue Coat old boy said last night: “The basis of all my claims has been specifically approved by the House of Lords authorities.

“All peers’ claims, and the rules governing them, have been on the internet for some years. Peers are not paid any salary or pension for their work. But you are allowed to claim an allowance for a London property whilst maintaining a home outside London as in my case.

“I think that there should be a new system for paying peers through transparent taxable allowances. Otherwise the Lords will be completely dominated by the rich and the retired who are able to live in London.”

Last week St Helens South MP Shaun Woodward received a barrage of criticism for his expense claims.

The Northern Secretary – reputedly the richest cabinet minister – claimed £100,000 to help pay mortgage interest on his £1.35m London flat.