One would suppose that both David Cameron and Nick Clegg would want swift closure on the matter of MPs expenses now that David Laws has resigned as Treasury Chief Secretary.

But Mr Laws’ replacement Danny Alexander has, according to the Telegraph, taken advantage of a loophole that allowed him to legally avoid paying Capital Gains Tax (CGT) on the sale of a property.

This piles on more embarrassment for the coalition government as one of the main planks to their tax changes involves the possible increase in CGT.

It is thought that the appointment of Mr Alexander to replace David Laws was done for political purposes rather than appointing the best person for the job. This not only keeps the left leaning back benchers on side it also keeps the LibDems fully engaged in and also bound to the process of public sector cuts. The City may have preferred someone like Philip Hammond, but Mr Alexander does though have the support of the Justice Secretary, Ken Clarke.

Not only has Mr Laws resigned, according to the Times he is considering his further position as an MP. He has also said that he will not be taking any ministerial severance pay. He stepped down after claiming £40,000 for renting a room from his partner, a Mr Lundie, which is outside the rules.

In the case of Mr Alexander it appears that no House of Commons or HMRC rules were broken, so his position is not likely to be under threat. But Nick Clegg has continually denounced ‘home-flippers’ so will leave him more than a little red-faced.

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