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MPs should no longer be able to claim for their mortgages or employ family members at the taxpayers' expense, the long-awaited report by the standards watchdog has said.
The chairman of the Committee on Standards in Public Life, Sir Christopher Kelly, said that the proposals were "fair and reasonable" and would bring Westminster into line with other walks of life and other legislatures.
He acknowledged that his wide-ranging proposals would mean "substantial change" for MPs and said that, where necessary, they should be phased in with a suitable period of transition.
The key recommendations include giving the new Independent Parliamentary Standards Authority (IPSA) the power to determine the pay and pensions of MPs as well as their expenses.
Claims for the mortgage interest should be brought to an end with "appropriate transitional provisions" of one more Parliament, or for five years.
The report said that there should be no further capital gains at public expense, and the controversial practice of "flipping" properties should no longer be possible.
Any capital gains made during the transitional period attributable to public support would have to be paid back to the taxpayer.
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In future, MPs should only be able to claim for rent or hotel costs, while the expenses scheme should only cover council tax, utility bills, telephone line rental and calls, security, contents insurance and removals at the beginning and end of a tenancy. The costs of cleaning, gardening, furnishings and other items would not be claimable.
The committee said that MPs with constituencies within "reasonable commuting distance" of Parliament should no longer be able to claim for a second home at all.
It said the practice of MPs employing members of their families should be brought to an end by the end of the next Parliament, or within five years.
