Updated 2:13pm 31 May 2012

Shadow cabinet to pay back expenses

Instead, Mr Osborne said: “I thought it was a legitimate journey to make from my constituency late at night. However, I don't want there to be question marks over my expenses.

“I took the decision, along with David Cameron and the rest of the shadow cabinet, that we would deal with contentious claims, with claims that the public would have very legitimate questions about, and pay back the money.”

On Monday, it was revealed that Mr Grayling, who represents a Surrey constituency, owns no fewer than four properties within the M25 motorway.

Since 2005, he has reclaimed £4,250 for redecorating, £1,561 for a new bathroom, £1,341 for new kitchen units, £1,527 for plumbing and £1,950 for rewiring and £3,534 for service and maintenance, according to the Daily Telegraph.

Under an overhaul announced by Mr Cameron, Tory MPs will only be allowed to claim for basic costs on second homes, such as rent and utility bills.

A new scrutiny panel will review every “excessive” expense claim, to decide whether it should be paid back, and avoiding tax on property sales will be banned.

Referring to his colleagues, Mr Cameron said: “If they had not paid back what they should not have claimed, they would not have been in the shadow cabinet. They would have been sacked, that's quite clear.”

READ City Editor David Bartlett’s new blog on the MPs’ expenses scandal at http://bit.ly/expenses

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