Watchdog examines ban on MPs’ second jobs after Paterson breach

MPs could be banned from taking on second jobs as political consultants in the wake of the Owen Paterson case, under proposals being considered by Parliament’s standards watchdog.

The Sunday Telegraph understands that the Committee on Standards, which rules on whether MPs have broken the code of conduct, is discussing the measure as part of a new report on the rules that apply to members.

Several figures on the committee, made up of MPs and lay members, believe that restrictions on outside interests must be tightened after Mr Paterson was found to have committed an “egregious” breach of the rules on paid advocacy. He was originally investigated by Kathryn Stone, the standards commissioner, who found that Mr Paterson had breached lobbying rules on behalf of two companies, which between them were paying him more than £100,000 a year as a consultant.

MPs are allowed to take on outside jobs but are banned from making representations that might benefit their employers for six months, while direct lobbying is prohibited.

The former environment secretary has maintained that he is “totally innocent” and had been using a public interest exemption to the lobbying rules to raise issues relating to public health – a view supported by a number of prominent Tory MPs. However, he resigned on Thursday after an outcry over Downing Street’s aborted attempt to block a recommendation by the committee that he be suspended from the Commons for 30 days. Despite the Government’s attempts to establish a new committee of MPs, which would be tasked with reforming the standards system, both Ms Stone and the committee remain in place.

The row has prompted several figures involved in the standards system to conclude that the rules around paid advocacy must be strengthened and clarified further, to prevent a similar controversy in future.

The recommendation on banning certain types of consultancy work was previously made by the Committee on Standards in Public Life, which in 2018 said that MPs should “not undertake outside employment as a Parliamentary strategist, adviser or consultant”.

The report on outside interests went on to state that this type of work “can lead to MPs having a privileged relationship with one organisation, and therefore bring undue influence to bear on Parliament”.

If agreed, the recommendation is expected to be one of several put forward in a new report on the MPs’ code of conduct, due to be published in the coming weeks, which would then be put to a vote in Parliament.

The requirement for MPs to hold contracts with outside employers is also understood to be under consideration, with insiders arguing that this would help provide clarity over the role a member holds should they be placed under investigation.

Mr Paterson did not hold contracts with either of the companies he worked for, with Ms Stone stating during her investigation that it was unclear “what duties were expected of Mr Paterson”.

The committee could also consider appointing a third party adviser to assess whether a new appeals process could be added to the standards system.

Both the Government and Mr Paterson have criticised the current process, which they say prevents MPs from challenging rulings of the Commissioner and Committee. Any move to introduce a new appeals system will therefore be seen as an attempt to head-off another push by Downing Street to interfere with the standards system.

‘Owen eventually did the sensible thing and that at least reduces the damage that would have dragged on’