Pat McFadden outside BBC Broadcasting House in London after appearing on Sunday with Laura Kuenssberg earlier this month Photo: Victoria Jones/PA
Sir Keir Starmer's campaign manager claimed more than £40,000 in rental costs for his constituency house, despite owning the house next door.
Pat McFadden, who as national campaign co-ordinator is one of Labour's most powerful figures, embraced the unusual lifestyle for five years.
He moved out of his own property in July 2012, a month before the changed expenses rules to prevent MPs from claiming mortgage interest payments.
The revelations sparked accusations that he had broken the «spirit of the rules» and prompted calls for change to stop taxpayers subsidizing MPs' property portfolios.< /p>
A spokesman for Mr McFadden said he had «complied with IPSA rules at all times» and noted that he eventually sold his home at a loss.
The New Labor veteran, first elected in 2005, bought a new house in his Wolverhampton constituency in 2006 for £159,950. Pat McFadden claimed £40,000 sterling in the rental costs of 320 Willenhall Road, Wolverhampton, while he owned 318 next door
He lived there for six years, claiming mortgage interest costs of £547 a month, until he moved in July 2012 due to a rule change.
He let out his home that same month to rent and moved into a neighboring house, where he began to demand a monthly rent of £625 for expenses as his constituency house.
His own property was quoted as £700 a month by a letting agent in August 2015.
The living conditions were first reported by The Sunday Times in September 2015, when Mr McFadden demanded rent of £21,000
At the time he said changes to spending rules forced him to move. and that he could not sell the house he owned because his equity was negative.
“Without making any profit”
He told the newspaper his living situation was «a direct result of the change in the rules for MPs». “living expenses” introduced in 2012.
“I didn't want to move out of my constituency house and didn't want to rent it out. I did not at any stage seek to circumvent the IPSA rules, but instead sought to comply with them,” he said.
Mr McFadden also insisted he was not making any profit from the situation.
It can now be revealed that, despite criticism, he kept the agreement for a further two years, almost doubling the total amount he demanded in rent to £40,250.
He eventually sold the house owned in November 2017, with title deeds showing he had lost £12,950 on the original price he paid.
The Labor veteran owns the house separately in north London, which it bought in 2009 for £799,950 and is now valued at around £1.74 million.
«Contrary to the spirit of spending rule»
Sir Alistair Graham, former chairman of the Public Living Standards Committee, said Mr McFadden's living conditions were contrary to the spirit of the spending rules.
“All MPs have a serious personal responsibility to minimize the amount they needs to be claimed from public funds,” he said.
He added that IPSA should review the rules regarding housing benefits for constituents. to “see what is in the best public interest.”
Parliament's spending watchdog said it does not take into account MPs' personal wealth or property ownership when setting rules.
» IPSA's accommodation budget aims to ensure MPs are not left out of pocket by having to work in two places,” the report said.
Meanwhile, the Tories accused McFadden of “blatant hypocrisy”, given that Labor has repeatedly accused them of wasting public money.
'Labour's hypocrisy'
The party launched a campaign in February last year criticizing the Conservatives for their «wasteful spending». ” in hotels and restaurants using government credit cards.
Gary Sambrook, Tory MP for Birmingham Northfield, said: “Labour's election campaign is being run by a man who has used taxpayers' money to subsidize a tidy property portfolio, owning two houses and living in a third — in complete opposition to the spirit of the party.» rules.
“Once again, this is blatant hypocrisy on the part of the Labor Party, which is all too happy to point fingers at anyone and everyone without having an ounce of integrity of its own.”
< p>Mr. McFadden and his wife Marianne are the two most powerful figures in Sir Keir's senior team and will play a crucial role in a future Labor government.
He is responsible for planning the party's election strategy and is regularly sent on air to promote its policies
He returned to the fold, serving as a minister under Sir Tony Blair and Gordon Brown, and as a shadow minister under Jeremy Corbyn.
Ms McFadden, meanwhile, is Morgan's deputy McSweeney, who is considered Sir Keir's most senior and influential adviser.
A Labor spokesman said: “Mr McFadden complies with IPSA rules. at all times. In 2017 he sold his Wolverhampton property at a loss, which he paid for personally.»
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