Sir Christopher Kelly, the chairman of the committee on standards in public life, called on the full implementation of all the recommendations by the beginning of the next parliament.
He said the plans 'aim to strike a balance' between ensuring MPs are properly supported and safeguards are put in place to prevent the 'abuses of the past'.
As expected, after the committee's findings were leaked partially last week, expenses for mortgage interest payments on second homes are recommended to be outlawed, as will the practice of 'flipping' second home designation to avoid capital gains tax.
MPs will no longer be able to claim for electrical appliances or gardening, with claims for utilities or security still being permitted.
Sir Christopher unveiled plans for MPs to be banned from employing relatives by the end of the next parliament, while communications allowances will also be banned.
On the ban for family members, the committee notes in its report: 'We have heard much evidence commending the dedication and hard work of many family members, and about the advantages the arrangement may bring to constituents and to the family life of MPs.
'But, it is not consistent with modern employment practice designed to ensure fairness in recruitment, management of staff and remuneration; and it will always carry with it a suspicion of abuse.'
MPs whose homes are within commutable distance of London will also be prevented from claiming second home allowances. But MPs will not be stopped from collecting other forms of income if such activity 'remains within reasonable limits'.
'Our proposals are reasonable and fair and bring Westminster into line with other walks of life and other legislatures. They recognise the unique circumstances of an MP's life but are shorn of the special features which gave scope for exploitation,' Sir Christopher said in Westminster this morning.
'We realise that the new system will involve substantial change for MPs and where necessary we have recommended periods of transition.'
He added: 'We are clear that the three tests set for us by the leaders of the main parties - increased accountability, transparency and reduced costs - have been met.'
Liberal Democrat leader Nick Clegg is the only party leader to explicitly back the proposals before their publication, while David Cameron said he would wait for their official unveiling.
Gordon Brown meanwhile is said to still be concerned they could prevent people from poorer backgrounds becoming MPs.
The Kelly review is separate to the audit by Sir Thomas Legg, who is continuing to write to MPs to request they pay back certain expenses claims.
He said the plans 'aim to strike a balance' between ensuring MPs are properly supported and safeguards are put in place to prevent the 'abuses of the past'.
As expected, after the committee's findings were leaked partially last week, expenses for mortgage interest payments on second homes are recommended to be outlawed, as will the practice of 'flipping' second home designation to avoid capital gains tax.
MPs will no longer be able to claim for electrical appliances or gardening, with claims for utilities or security still being permitted.
Sir Christopher unveiled plans for MPs to be banned from employing relatives by the end of the next parliament, while communications allowances will also be banned.
On the ban for family members, the committee notes in its report: 'We have heard much evidence commending the dedication and hard work of many family members, and about the advantages the arrangement may bring to constituents and to the family life of MPs.
'But, it is not consistent with modern employment practice designed to ensure fairness in recruitment, management of staff and remuneration; and it will always carry with it a suspicion of abuse.'
MPs whose homes are within commutable distance of London will also be prevented from claiming second home allowances. But MPs will not be stopped from collecting other forms of income if such activity 'remains within reasonable limits'.
'Our proposals are reasonable and fair and bring Westminster into line with other walks of life and other legislatures. They recognise the unique circumstances of an MP's life but are shorn of the special features which gave scope for exploitation,' Sir Christopher said in Westminster this morning.
'We realise that the new system will involve substantial change for MPs and where necessary we have recommended periods of transition.'
He added: 'We are clear that the three tests set for us by the leaders of the main parties - increased accountability, transparency and reduced costs - have been met.'
Liberal Democrat leader Nick Clegg is the only party leader to explicitly back the proposals before their publication, while David Cameron said he would wait for their official unveiling.
Gordon Brown meanwhile is said to still be concerned they could prevent people from poorer backgrounds becoming MPs.
The Kelly review is separate to the audit by Sir Thomas Legg, who is continuing to write to MPs to request they pay back certain expenses claims.
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