Bristol MP set to lose cash by cap on 'golden goodbye'

MPs quitting Parliament will learn next week whether they will lose up to £54,000 of their "resettlement grant", in a fresh crackdown on their allowances.

The Kelly inquiry, set up after the expenses scandal earlier this year, is expected to recommend a cap on the "golden goodbye" of two months' salary – around £10,000.

That would be a dramatic cut on the grant of between £32,383 and £64,766, depending on the age and length of service of the departing MP. The first £30,000 is tax free.

Sir Christopher Kelly's Committee on Standards in Public Life could opt to delay the change until the election after next, but that would risk further public anger.

If it is applied at next year's election, it would hit Bristol North West MP Doug Naysmith deep in his pockets. He is due to receive around £37,000.

The report, published next Wednesday, is also tipped to recommend:

● Axing the £10,400-a-year "communications allowance", typically spent on leaflets for constituents.

● Ending the £25-a-day "subsistence allowance", claimed – without a receipt – for food, when an MP is away from their main home.

● Slashing back claims for first class rail travel between London and a constituency.

● A ban on employing relatives.

● A ban on taxpayer help to buy second homes, with MPs expected to rent instead.

● Ending taxpayer help to buy, or rent, second homes for MPs living within one hour's rail journey of London.

MPs will be denied a vote on whether to accept Sir Christopher's report.

Gordon Brown told the Commons that the review's findings would instead be handed to the new Independent Parliamentary Standards Authority to implement.

A No.10 spokesman pointed out the new Parliamentary Standards Act required IPSA to "consult MPs when drawing up the expenses regime but not seek their final approval".