On one of the most momentous days in British parliamentary history, the Speaker of the Commons, Michael Martin, resigned his office yesterday, and the prime minister desperately tried to defuse the constitutional crisis by announcing unprecedented plans to curb centuries of MPs' self-governance.
Within hours of Martin giving up the fight to retain his post as the most senior commoner in the land, Gordon Brown outlined plans to dismantle what he described as the "gentlemen's club" of parliament by handing power for the oversight of every aspect of MPs' pay, expenses and pensions to a new statutory independent regulator. At a Downing Street press conference, the prime minister said Westminster "can no longer operate as a 19th-century institution where the members make up the rules, and operate them among themselves".
He said he would be willing to pass legislation to end self-regulation immediately, on a cross-party basis, so that MPs were no longer in the invidious position of being "judge and jury of their own pay and rations".
Later Martin announced an immediate interim ban on MPs claiming for furniture and the "flipping" of second homes, two of the most incendiary practices to emerge from the expenses scandal.
His interim reforms also include:
MPs living together must designate the same home as their main residence
A cap on mortgage interest payments at £1,250 a month
MPs to be "completely open" on whether they have claimed additional costs allowance on a property as a second home and are liable for capital gains tax
All expense claims to be published online quarterly
Only rent, hotel bills, overnight subsistence, mortgage interest, council tax, utility charges and insurance will be allowed
Claims which are the subject of any doubts will be refused with no opportunity of appeal.
Earlier, Brown promised that Labour's national executive would deselect MPs who had broken the rules of parliament, describing the expenses claims of his communities secretary, Hazel Blears, and the Labour MP for Luton South, Margaret Moran, as "completely unacceptable" – his harshest condemnation yet.
He said his reforms would "change centuries of history for parliament" and added: "To move from self-regulation to statutory independent regulation is the only way forward." He promised to come forward with specific proposals.
Martin, appointed in 2000, became the first Speaker to be forced from office in more than 300 years. He resigned yesterday morning after consultations with close allies and a discussion with Brown on Monday afternoon and again yesterday. The prime minister is understood to have warned him that support was draining away after a disastrous performance in the Commons on Monday afternoon.
Allies of Martin such as the Labour MP Jim Sheridan and Lord Foulkes blamed an anti-Catholic conspiracy and even called for parliamentary sketchwriters who have tormented him to be censored. Labour MPs broke with precedent to applaud Martin last night after he announced the interim rules to tighten MPs' expenses and allowances.
Brown had planned to announce the changes at his Downing Street press conference, but was told by the Liberal Democrat leader, Nick Clegg, that Martin should be allowed to make the statement to MPs, so reducing the prime minister's chance of taking the political credit.
Earlier, Martin resigned in an anti-climactic 33-second statement in which he said simply: "Since I came to the house 30 years ago, I have always felt that this house is at its very best when it is united. In order that unity that can be maintained, I have decided that I will relinquish the office of Speaker on 21 June."
His departure will create a hideous byelection for Labour in his Glasgow north-east constituency in late summer.
Potential successors were already discreetly campaigning in what will be the first secret ballot for Speaker in parliament's history. Leading candidates include Sir George Young, a reforming old Etonian; Sir Alan Beith, the veteran Liberal Democrat; and John Bercow, the independent-minded Tory. Vince Cable, the Liberal Democrat economic spokesman, ruled himself out, as has David Davis, the former shadow home affairs spokesman.