MPs could face having their expenses scrutinised in a similar way to small businesses in an attempt to ensure transparency.

Commons speaker Michael Martin promised urgent action to restore public trust shattered by Tory MP Derek Conway, who paid his son thousands of pound of public money while away studying at university.

The Members Estimate Committee are carrying out a "root and branch" reform and yesterday unveiled its second report into the radical reform.

MPs expenses have been under intense scrutiny since the Mr Conway scandal, especially the £22,000 additional costs allowance" (ACA), MPs can claim for staying overnight away from their main home as part of their parliamentary duties, coming under particular fire.

Among the report's considerations are keeping the ACA, but with a tighter, more transparent regime for claims and audit or making overnight costs part of the salary.

Bradford North MP Terry Rooney said: "I am happy for anyone to look at my expenses.

"It will cost a lot more to do the audit than what it may save at the end of the day.

"None of this money goes into MPs pockets, it is staff costs, running offices, and the people of Bradford deserve a level of service, they should not be expected to be represented on the cheap."

Giving MPs accommodation in London, owned by the Commons, for weekday use was also floated, however almost immediately dismissed because finding accommodation to house 630 MPs near Westminster at a reasonable cost was "highly unlikely" given London's house prices.

Lib Dem MP Nick Harvey and Penrith and the Border MP David Maclean who held the press conference indicated that the most popular plan was to tighten up the current ACA, but stressed "nothing had been ruled in or nothing had been ruled out."

And they invited thoughts from both inside the Commons and from the public saying there was "widespread acceptance of the need for change."

Mr Harvey said: "The additional cost allowance is mired in controversy, but there has to be some system that reimburses members of Parliament for the necessary costs of living and working in two locations.

A more robust control regime over claims is urgently required."

Mr Harvey said the committee had been working "flat out" to address concerns over MPs' expenses and the new regime had to be "more transparent with a bit of rough justice".

It is feared lumping the MPs cost of staff, and travel and other allowances into the salary would be seen as a "huge salary increase" when in fact MPs would end up being worse off.

The review is also considering whether MPs staff should be employed directly by the House of Commons rather than MPs and travel grants based on the size and distance of the constituency.

The committee will report in July. It was also announced yesterday details of MPs spending on constituency newsletters will be released.