PLANS to hike MPs' pay to £74,000 while the rest of the country suffers austerity have been condemned by all three main party leaders.

Labour's Ed Miliband and Liberal Democrat Nick Clegg immediately said they would personally shun the extra cash - although David Cameron stopped short of committing himself.

But the Independent Parliamentary Standards Authority (Ipsa) chairman Sir Ian Kennedy remained defiant, insisting it was doing the right thing and MPs' pay had to "catch up" after years of being suppressed.

The row exploded after Ipsa unveiled proposals for an 11% rise from the current level of £66,396, adding £4.6 million to the Commons salary bill once national insurance is factored in.

The package, due to take effect in 2015, will be offset with curbs to pensions, "golden goodbyes", and expenses for dinners, TV licences and taxis. Ipsa said the overall burden on the taxpayer will only go up by £500,000 when all the changes are taken into account. It is also urging politicians to publish an annual "MoT" explaining the work they have done for the money they receive.

However, there was an angry response from some MPs who accused Ipsa of opening them to public vitriol.

Downing Street refused to comment on whether the Prime Minister would accept the increase, stressing there would be a consultation before the regulator reached a final decision.

"The cost of politics should go down not up. And MPs' pay shouldn't go up while public sector pay is rightly being constrained," a Number 10 spokesman said.

Mr Miliband said: "If this was to go ahead I wouldn't be accepting this pay rise but I don't think it is going to go ahead in the current circumstances because I think that when Ipsa consult the public, the public will be pretty clear that while the difficulties we have in the economy persist we can't have MPs getting a 10% pay rise."

Speaking on his weekly LBC radio phone-in, Mr Clegg said: "I've said very up-front, speaking for myself, personally - let's remember I am luckier than many other MPs because I'm on a ministerial salary - I would not be able to accept such a significant pay increase myself."

© Press Association 2013