MP repays £10,000 after 'careless' mistake

Grimsby MP Austin Mitchell said he was sorry and had been "careless" not to recognise the error, which he blamed on his bank.

He has owned up ahead of the publication of the final report by Sir Thomas Legg, who has audited claims made by every MP and will reveal how much he has asked them to repay.

The amount is one of the largest to have been repaid since the expenses scandal broke and is revealed as prosecutors consider pressing charges over dubious claims made by some MPs and Peers.

"I am releasing this information now ahead of whatever announcements Sir Tom Legg makes on claims for repayment by the generality of Members because I have no wish to contest his ruling in my case," said Mr Mitchell in a statement. "I am sorry."

Mr Mitchell, a former television journalist, has been Labour MP for Grimsby since 1977 and brands himself as "not Old Labour – positively geriatric". He is expected to defend the seat in the general election due this year.

He said the problem arose in 2006 when he made an "authorised addition" to his interest-only mortgage.

Instead of being put on an interest-only basis, the extra amount was on a repayment footing, he said, although he insisted it was not at his request.

He admitted being "careless" not to have realised, and agreed to repay 10,549 which he was overpaid as a result of the error.

Under Commons rules, MPs are allowed to claim interest payments on mortgages on their second homes, but are not allowed to claim for capital which is paid off as well.

"My mortgage is on an interest-only basis but an authorised addition to it in 2006 was, for some reason and certainly not at my request, put by the bank onto a repayment basis," he said.

"I was careless not to recognise this but the regular bank statements gave only a single sum with no distinction between interest and repayment. An overpayment occurred and I have paid this back to the Fees Office and changed the mortgage."

The report by Sir Thomas was initially expected to be published at the end of last year but has been delayed after dozens of MPs appealed against rulings that they should repay money.

Some MPs, like Mr Mitchell, have accepted his findings and already reimbursed Commons authorities. Prime Minister Gordon Brown was asked to repay more than 12,000 and Liberal Democrat leader Nick Clegg, MP for Sheffield Hallam, 900.

Rules which could ban MPs from claiming expenses for second home mortgages – pushing them to rent homes instead – are now being consulted on.

The continuing controversy over the expenses system will leave many MPs fighting the general election campaign with the issue hanging over them.