Stephen Crabb MP: "I have always sought to stay safely inside the rules"

The MP for Preseli Pembrokeshire's claims came under the microscope this morning in The Daily Telegraph.

Mr Crabb denies that he designated his family house in Pembrokeshire as his second home while renting a flat in London, for financial gain. The Telegraph reported that Mr Crabb made a profit after selling one flat following taxpayer-funded refurbishments and claimed £9,300 in stamp duty. Mr Crabb told the Western Telegraph: "I am mortified that my name has been linked to the growing expenses scandal. I have always sought to stay safely inside the rules for expenses and allowances."

He added: "Every decision I have made about accommodation as Member of Parliament has been made with the explicit guidance of the Fees Office. Indeed, the switch of my designated second home from London to the constituency in October 2007 was actually suggested to me by an official in the Fees Office. At the time I was not just using a room in a flat rented by another MP in Westminster, as implied in the Daily Telegraph article, I was actually the joint-tenant on a fully commercial basis and shared all costs of the property.

"I reject the allegation of ‘flipping’ my London property to make a profit as a result of taxpayer-funded refurbishments. The flat I sold in August 2007 in South East London was bought by me in 1997. During the 12 months that I claimed Additional Costs Allowance against this property I, along with all the freeholders on the estate, paid for obligatory external paintwork to be done and I also claimed for five new windows following a burglary at the flat. The cost of this work was approximately £3,000. I am advised that these works did not materially affect the sale value of the property.

"Over the last four years juggling family life in two locations 250 miles apart has been extremely difficult. It has not been easy achieving settled arrangements but at no stage have I sought to change addresses for capital gain or to avoid capital gains tax.

"I stopped claiming ACA against the constituency property in summer 2008 after we had started renovating it as I did not consider it appropriate to enhance a property for which the taxpayer paid the mortgage interest. No renovation work on this property was charged to my ACA.

"I have referred all my accommodation arrangements over the last four years to the new Scrutiny Panel for independent advice on the claims I have made. People in Pembrokeshire rightly feel very strongly about this issue and I now have to work hard to reassure them that my expenses are in order."