PRIME Minister Gordon Brown today accepted "in full" the Kelly report on MPs' expenses, which said MPs should no longer be able to claim for their mortgages or employ family members at the taxpayer's expense.

Mr Brown wrote to Sir Christopher Kelly as his long-awaited report was published today, saying MPs should not seek to water down his controversial proposals.

The chairman of the Committee on Standards in Public Life said that his blueprint was "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 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.

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.

Mr Brown wrote to Sir Christopher: "I accept your report. We need to establish a new system to re-establish trust.

"It is right that this new system is not determined, administered or amended by MPs.

"I therefore agree with your recommendation that it will be for the new IPSA to implement this new system."