The wife of Croydon South MP Richard Ottaway has been banned from her job as his parliamentary assistant in the wake of the expenses scandal – a move which could cost the taxpayer an extra £10,000 a year.

Nicky Ottaway will have to resign from her part-time role under new rules set down in the report by Sir Christopher Kelly, chairman of the committee on standards in public life.

The Conservative MP said he was “pragmatic” about having to let his wife go, adding it would cost the public more to train and employ her replacement than it would to keep her on the staff.

He said: ”My wife does a thoroughly good job – she’s a past chief executive of an advertising agency and she’s got a first-class degree, so there’s no bemoaning her skills.

“I recognise there is public concern over employing your family – and I have made no secret of it.

“I recognise the concern and will obviously accept the Kelly recommendations.

“I will probably have to pay longer hours because I have got to train someone, and obviously I have got to rent an office space, because my wife does it on the kitchen table.

“That’s the price we have to pay for regaining the public’s confidence.”

Mr Ottaway received calls to resign from party members earlier this year, after coming under heavy fire from the public for his perceived lavish expenses claims.

He stopped claiming second home expenses on his £467,000 country pile in Bletchingley, Surrey, in May, and has vowed not to use the allowance in the future.

He was the only one of the three current Croydon MPs to claim for a second home, which is 21 miles from Westminster – where he already owns two properties.

House of Commons records showed the MP spent £8,825.75 landscaping the gardens at the four-bedroom home between April 2004, and March 2008, as well as £5,395 towards a bed to treat a “chronic back condition” and £1,000 on shower repairs.

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