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 said today.

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.