Afternoon summary
- MPs from the Commons public accounts committee have launched a withering attack on HM Revenue and Customs over its response to information it received about clients of HSBC’s Swiss division dodging tax. Margaret Hodge, the Labour MP who chairs the committee, said accused Lin Homer, the HMRC chief executive, of a “pathetic” response. Hodge also said HMRC was sending out a “really rotten message” to people considering evading tax because its action was so weak. She said HMRC was sending out the message that “it’s a risk worth taking - the worst that can happen to you if HMRC can be bothered to catch up with you is that you may have to pay, you won’t have a prosecution, you won’t have any shame, you won’t be an example to anybody else, you’ll get away with it”. She went on:
That’s a terrible message to get out to British taxpayers, it’s a really rotten message.
- Lord Fink, a Tory donor and peer and party treasurer until 2013, has accused Ed Miliband of slandering him in the Commons. Fink denies being involved in tax avoidance. (See 4.30pm.)
- Shabana Mahmood, the shadow Treasury minister, has called for a “full and frank” statement from Lord Green, the former HSBC boss and former Tory trade minister, about what he knew about the tax scandal at HSBC. In a Commons debate on the scandal, she also said Labour’s record on collecting tax was better than the government’s.
The Financial Times had a look at tax avoidance and the tax that has been collected by the government’s anti-avoidance measures against companies and compared that with the measures Labour put in place for corporate tax avoidance during our term in office.
They found, actuall, tax collected by the Government’s measures was going to be 90% lower than those measures that were introduced by the Labour party.
If I can quote directly, ‘measures put in place by Labour during its 13 years in power to counter corporate tax avoidance are projected to raise 10 times as much over the next four years as those introduced by the current coalition government’.
- David Gauke, a Conservative Treasury minister, has defended Lord Green. In the debate he said:
Lord Green was appointed in January 2011. At that point the information about the fact there was an investigation into HSBC account holders was in the public domain, and so there was no big secret about this.
In terms of the conversations that were had specifically of course I was not privy to that, but there is no suggestion that Lord Green had acted improperly, was complicit in tax evasion or was involved in this particular activity and that could not be clearer ...
There is no evidence that Lord Green was complicit in any wrong doing and that point remains the case. Opposition members can stand up and make allegations and suggestions but there is no evidence that he was engaged in that type of behaviour and certainly no information that was available to ministers to suggest that that was the case.
- Boris Johnson, the Conservative mayor of London, has said that Hillary Clinton, a frontrunner to succeed President Obama in 2016, wants Britain to do more to fight Islamic State. After meeting her in New York, he said.
Secretary Clinton was very, very clear that she thinks there should be more engagement, more support from the West, from the UK, in backing the Kurds, backing the Peshmerga against Isis.
- Nick Clegg has mocked Labour’s pink women’s campaign bus. he told the Western Morning News.
It’s just a tiny bit condescending [to think] because it’s bright and pink therefore women relate to it more. It’s a bit like saying that political parties should drive around in macho red sports cars and blokes across the country will suddenly listen to them. It is just a slightly patronising way to deal with voters it seems to me.
That’s all from me for today.
Thanks for the comments.
And Lord Paul, the former Labour peer, has told ITV news that he closed his Swiss bank account four years ago.
Lord Paul - named by PM in relation to HSBC tax issues - tells ITV News he closed his Swiss account about four years ago #HSBCLeaks
— Libby Wiener (@LibbyWienerITV) February 11, 2015
According to Andy Bell, Labour is not going to back down over its Lord Fink allegations. (See 4.30pm.)
Labour; will be no backing down on Lord Fink, Ed will make allegations again outside Parliament #HSBC
— Andy Bell (@andybell5news) February 11, 2015
Kamal Ahmed, the BBC’s business editor, has written a good blog on the public accounts committee’s hearing with Lin Homer. He thinks there were three key revelations.
First, HMRC has now revealed it is looking to expand the scope of its investigation and is meeting other law enforcement agencies later this week.
Sources tell me that HMRC is likely to meet both the Serious Fraud Office and the police. Jennie Grainger, HMRC’s director general of enforcement, told MPs that they wanted to “collaborate” with other agencies.
If the SFO and the police launch separate investigations, that would be a serious escalation for HSBC. The bank says that it has reformed the operations of its Swiss private banking arm and standards of compliance are now much higher.
Second, HMRC will also look at money laundering in connection with the HSBC data following discussions with the French authorities earlier this week.
Third, HMRC initially believed that up to 150 of the people on the HSBC data list could face criminal prosecutions.
Gauke says the government has been tough on avoidance and evasion.
Its measures will raise £7.6bn in 2015-16, he says. Labour’s measures will not raise anything like this, he says.
Gauke says the Labour motion (see 9.13am) suggests some measures for future action. But there is no point proposing ideas that do not work.
For example, the government considered the idea of introducing deeming criteria to restrict false self-employment in the construction industry. But this would require bricklayers to provide their own bricks, he says.
He says the government also looked at closing the quoted Eurobonds exemption loophole, but decided this would not raise money.
Gauke says the government has closed “loophole after loophole” in the tax system left by Labour.
It has made more than 40 changes to the tax system, he says.
Shabana Mahmood intervenes again. Does Gauke think Lord Green should make a statement about what he knew about HSBC?
Gauke says it is up to Green to decide if he wants to make a statement.
Back in the Commons Shabana Mahmood has finished her openining. I will post more excerpts from it later.
David Gauke, the Treasury minister, is responding now.
He says Lord Green was a very effective trade minister.
No regulator has suggested he was at fault in relation to HSBC’s Swiss division.
At no point were ministers made aware of the evidence that has emerged in recent days of wrong-doing at HSBC itself.
Shabana Mahmood intervenes. The media reports at the time made it clear that there were problems with HSBC, she says.
Gauke says people could have accounts in Switzerland without committing an offence.
It was known that a disk was acquired at the time with the names of people with HSBC accounts. The investigation was into whether individuals had paid their tax.
The evidence we have seen recently, for example relating to bricks of cash being handed out, only came to the attention of ministers in the last few days.
Lin Homer, HMRC boss, at the public accounts committee - Summary
Here are the main points from Lin Homer’s evidence to the Commons public accounts committee hearing.
- Margaret Hodge, the public accounts committee chair, accused Lin Homer, chief executive of HM Revenue and Customs, of “not serving the British taxpayer”. During a hearing which saw Hodge criticise Homer severely and repeatedly, Hodge accused HMRC of not doing enough to recover money lost through tax evasion and to prosecute offenders. She said:
It’s pretty outrageous what was going on. It’s the first time in many of these leaks that there are really strong allegations not of egregious tax avoidance, but of tax evasion, and that is incredibly serious.
For you to sit there and say, as you are doing, that ‘We couldn’t get the money in in the same way as the French and Spanish did’ and ‘We didn’t litigate because we wanted to get the money in’ and yet you did worse on the money - it leaves me believing that you are not serving the British taxpayer.
- Homer told MPs that 150 of the 3,600-odd people identified in the HSBC database were considered as serious candidates for prosecution. But only one person has been prosecuted, she confirmed. Three cases were presented to the Crown Prosecution Service, but two of those cases were dropped. Homer said that there were another 500 cases that were serious, but which were thought not likely to reach the test for criminal prosecution. And there were another 400 to 500 cases where people were pursued for settlement. Around two thirds of the people identified had paid the right amount of tax, she said.
- Jennie Grainger, HMRC’s director general for enforcement and compliance, told MPs that it was hard to prosecute in these cases.
It is very difficult to prosecute from offshore. One of the challenges - and particularly in a situation when you have stolen data, which is what this is - is that you have to be able to prove those facts another way in order for the CPS to be able to take it forward.
- Homer said it took the CPS 44 months on average to decide whether to prosecute a tax evasion case.
- Homer said HMRC had pressed the French authorities to permission to use the leaked data it supplied in 2010 to mount further prosecutions, but that the French had imposed strict conditions on what could be done with the information.
- Homer said that prosecution was only “one part” of what HMRC did.
Prosecution is only one part of what we do. It is a very important part of the toolkit but we are after tax and changes in behaviour and we are after a deterrent.
- Homer refused to say whether HSBC would be guilty of facilitating tax avoidance if it gave clients a credit card to enable them to withdraw funds from an undeclared account. It would depend on the circumstances, she said.
- Homer rejected claims that HMRC had not done enough to get hold of the original data about HMRC customers leaked by Herve Falciani. Hodge said to her:
One of my feelings of anger with you is that you sit there waiting for people to come. You don’t go out and police in the way other authorities are doing and therefore they are getting more money in and more litigation.
Homer replied:
Your assertions are not true. We are very pro-active. There is a suggestion that everybody else has been more pro-active. There’s consideration of action against the bank in a small number of countries, there is no decision to proceed and there is no conviction. There have been early moves to potentially charge one or two individuals.
- Homer said ministers would have been told when HMRC got hold of the leaked data about HSBC and suspect tax evasion by customers with accounts in its Swiss bank in 2010.
We are confident we will have told ministers that we were about to receive a big tranche of operational information.
- She said the HSBC customers who settled with HMRC did so under the Liechtenstein disclosure facility. This meant they only had to pay penalties worth up to 30% of their debt.
- She said non-dom status was partly to blame for the fact that HMRC recovered less in tax from people with HSBC accounts in Switzerland than the French and the Spanish did.
- She refused to say what Dave Hartnett, her predecessor, discussed with HSBC when he had a meeting at the bank in February 2010.
- She said it was unrealistic to expect HMRC to report general concerns about HSBC when it was asked for information before Lord Green’s peerage was approved. HMRC was only expected to give information about Green’s personal tax affairs, she said.
Updated
MPs debate HSBC
MPs are now debating the Labour motion on HSBC. (See 9.13am.)
Shabana Mahmood, the shadow Treasury minister, opens for Labour.
She says the tax system depends upon people being trusted to pay their tax. Yet this week we have discovered that data was handed over to the UK by the French in May 2010 identifying wrongdoing at HSBC.
Lord Fink, Tory peer, accuses Miliband of slandering him at PMQs
Lord Fink, the Conservative peer, has written to Ed Miliband accusing Miliband of slandering him in the House of Commons. At PMQs Miliband said Fink was engaged in “tax avoidance activities”. (See 12.47pm.) Fink says Miliband should withdraw this, or repeat it outside the Commons, where he would not be protected by parliamentary privilege and could be sued.
Dear Mr. Miliband,
Today at Prime Minister’s Questions, you alleged that I had undertaken ‘tax avoidance activities’ in Switzerland: ‘Let’s take Stanley Fink who gave £3 million to the Conservative Party. He actually appointed him as Treasurer of the Tory Party and gave him a peerage for good measure. So now can he explain what steps he is going to take to find out about the tax avoidance activities of Lord Fink?’
This allegation is untrue and defamatory.
These are the facts:
I was posted by the Man Group to run their office in Switzerland for four years from 1996 until 2000.
During this time I had need of a local bank account to do simple things like receive my Swiss Franc salary and pay grocery bills.
As I already banked with HSBC in London, I set up an account with HSBC. I subsequently set up an account with Credit Suisse as they had a branch much closer to my home and office.
I submitted tax returns in both Switzerland and Britain showing my revised tax status, which was accepted by the Inland Revenue.
I find it extraordinary that you have made claims against me that are without foundation or without contacting me.
I challenge you to repeat your allegation outside the House of Commons – or to withdraw it publically.
Yours sincerely,
Lord Fink of Northwood
Updated
Q: Were ministers told in 2010 when you asked the French authorities to use the information in the leaked disc?
Homer says she is not sure what happened. But they would have known if they had read the Financial Times.
Heaton-Harris jokes that they read the Guardian.
Homer says ministers would have been told.
Hodge says the committee is now going to move on to more general tax matters.
I will post a summary soon of what we have learnt from the HSBC exchanges.
I won’t be covering the rest of the hearing in detail, but I will be keeping on eye on it in case HSBC comes up again.
Chris Heaton-Harris, a Conservative, goes next.
Q: How would you answer the claim that it beggars belief that you did not tell the chancellor atbout the problems at HSBC?
Homer says the fact that people hide money in Swiss accounts is not new. The leaked disc provided information about individuals. It was widely known it was doing this. This was a regular activity.
It is a big jump from that to assume a wider group of people were complicit.
If we discovered a major UK organisation doing something suspect, people would know when we charged them. If we found evidence of that, we would charge them.
We talked to you about this data, she says. And we told you, as a committee.
We say when we have information and are going after people.
Homer says people knew HMRC had that data. It was in Financial Times at the end of 2009. “This was not secret.”
A Swiss bank had some clients who were not paying tax. But of the 3,000-odd we looked at, two thirds turned out to be compliant.
Q: What restrictions did the French impose when they gave you the information? And why did you accept them?
Homer says it is better to have some data than none at all. There is now £135m in the bank. HMRC has not lost money, she says.
She says HMRC has helped to get 90 countries to sign up to improved tax reporting.
HMRC was only meant to use them for tax collection.
Q: Why are other countries using this information to prosecute?
Homer says she does not know how many of those countries are using the information to follow money laundering. The UK is now getting permission for this.
Q: When did you get that?
Yesterday, says Homer.
Q: And did you ask the French authorities earlier to relax their conditions.
Yes, says Homer.
She says it is not the case that other countries are mounting prosecutions that are not taking place in the UK. The reports from other countries might just refer to discussions taking place, she says.
Hodge says she dealt with appointments as a minister. In that situation, you want as much information as possible, she says.
Q: According to the Guardian, Dave Hartnett, the former HMRC chief executive, had a lunch with HSBC in February 2011. Asked what was discussed, he said people would have to ask HSBC. So what was discussed?
Homer says she cannot say.
Q: But this is not about HSBC’s affairs? This is a matter of public interest.
Homer says she will look at the notes of the meeting, and consider what she can share with committee.
Q: Have you looked at it?
Yes, says Homer.
Q: So why can’t you tell us now? Why are you saying you need to look at it again?
Homer says she considers whether HMRC is too cautious about revealing information like this. She will look at it again.
Q: Why did you not tell the prime minister about the HSBC allegations when you were asked about Lord Green?
Homer says they were asked about his own tax affairs.
Q: But did you not think it would have been sensible to have told David Cameron about the tax evasion allegations?
Homer says HMRC supplies information in relation to a number of procedures.
What Hodge is asking is not realistic.
She is implying something wrong was going on at HSBC UK.
HMRC has one of the biggest databases in the world.
Back in the committee, Margaret Hodge asks about a list of people with HSBC accounts in Jersey.
Grainger says HMRC is looking at 170 of these names.
Q: Doesn’t this suggest tax avoidance and evasion was endemic at HSBC?
Homer says, if HMRC thinks there are corporate governance problems at a bank, it passes that information on to the appropriate authorities.
Zac Goldsmith's statement on HSBC
Turning away from the committee for a moment, Zac Goldsmith, the Conservative MP, has put out a statement about the Guardian story about his involvement with HSBC. Here it is.
It has never been a secret that I am a beneficiary of a Trust set up by my late father and administered by a family Office in Geneva. Indeed this was widely discussed before the last election. This report adds nothing to that old story.
To be clear, my very numerous family members around the world who are beneficiaries of the same Trust do not own or control it, but like me, they receive income from it.
I have never had a Swiss bank account, and do not control any Swiss bank accounts. I have never sought or been given tax minimisation advice by HSBC, directly or indirectly. The media commentary around this is therefore wrong.
The fact is that I receive an income from an international trust, and I have paid taxes in full on all the income or capital gains I have received, irrespective of where these arise.
HMRC are aware of the structure set up by my father and has never requested any ‘back taxes’ at all. Nor do they have any reason to.
On the issue of my contributions to the Conservative Party, they are a matter of public record and the vast majority are ‘notional’ and relate to use of offices over the past ten years.
Finally, it has been said that I relinquished the non-dom status I inherited from my father only after public pressure. This is wrong. I voluntarily relinquished it long before anyone ever approached me about the issue.
Q: Would you prefer to take prosecuting decisions in house?
Grainger says she thinks it is a good thing to have separation of powers.
Austin Mitchell says the tax avoidance industry in this country is bigger and more powerful than the tax collection industry.
Homer says marketed tax avoidance scheme are declining.
The tax avoidance industry may have better paid people, she says. But she does not think it has better people than HMRC.
Labour’s Austin Mitchell goes next.
Q: You seem very kindly (ie, these arrangements are very generous).
Homer says that is not the case. People have to pay penalties too.
Q: But don’t only pay a penalty of 10% of their liability.
Homer (or it could have been Grainger) says it can be as as high as 30%.
Q: How many cases have you settled under the Lichtenstein agreement?
Homer says all the cases settled will have been under this arrangement.
Of the 1,100 cases where HMRC identified people as owing tax, the majority will have been settled under Lichtenstein.
Q: And that means they are immune from future prosecution.
Homer says it is not immunity come what may. If people do no tell the truth, they lose their immunity.
Homer says ministers would have been told that they were about to receive a cache of information from the French.
Q: So did you inform people outside HMRC?
Homer says her predecessor mentioned this is a Commons committee hearing in 2011.
And HMRC put its own statement out at the end of 2011, telling people they should come forward.
Q: At what point did you tell people outside HMRC that you had the disc of evidence with information about HSBC accounts.
Homer says ministers would have been told.
Q: Who decided what to do with the disc.
Homer says it was Grainger’s predecessor.
Q: Was anyone outside HMRC involved?
CPS, when cases went to prosecution, says Homer.
Q: And no ministers?
That’s right, says Homer.
Jennie Grainger says HMRC sent three cases to the CPS for prosecution from the HSBC data. The CPS decided to take up one of them.
The Telegraph’s Christopher Hope thinks Lin Homer is holding up quite well.
HMRC's Lin Homer is admirably calm in the fact of the baiting from the MPs on the @CommonsPAC. One just said to her: "Don't interrupt."
— Christopher Hope (@christopherhope) February 11, 2015
Jennie Grainger, HMRC’s director general for enforcement and compliance, says it is very difficult to prosecute for offshore tax evasion.
With stolen data, you have to be able to prove your claims using other methods.
Richard Bacon says MPs went to jail because of data used from a stolen source.
Grainger says she did not say they needed alternative evidence; she said they need corroborative evidence.
Richard Bacon, a Conservative, goes next.
Q: Have you got the balance right?
Homer says the tax gap has decreased, and compliance has increased. And fewer people are using marketed schemes. So HMRC’s approach is working, she suggests.
Chris Heaton-Harris goes next.
Q: I am astonished the charge time for an individual, from when he hand over information to the CPS, is 44 months.
Homer says that is why HMRC uses civil penalties too.
Q: Why has there only been one prosecution?
Home says prosecution is only “one end of our tool kit”. It is an expensive option, she says.
Q: Prosecution has a deterrent effect. Only prosecuting one person implies that, if people are caught, there will just be a settlement. Doesn’t prosecuting only one person have the opposite effect?
Homer says she dos not accept that.
HMRC has increased its prosecutions five-fold.
But prosecutions are not the only things that can have a deterrent effect.
Homer says only the British and the Irish have convicted people on the basis of this information.
Q: Other countries are taking action.
They are considering action, says Homer.
Updated
Margaret Hodge says Herve Falciani did email HMRC in 2008 offering his data. HMRC did not respond. This has been reported in Le Monde.
Q: Why did you not respond?
Homer says today’s hearing was not meant to be about this.
Hodge says she made it clear this morning the hearing would be about HSBC.
Homer says she will sent a note about the Falciani email.
Hodge says she wants it quickly. And she will publish it.
Q: Is it true you only asked the French yesterday if you could use the data to follow up tax avoidance cases?
No, says Homer. HMRC asked for permission to use the data in this way originally. But the French imposed strict conditions. Now that the information has been made public, HMRC has gone back to the French asking for those conditions to be lifted.
Q: Did you ask the French if you could use the information to investigate tax evasion and tax avoidance?
Not in those terms, says Homer. But she says things that get written in newspapers do not stand up to the tests needed to secure a conviction in court.
Chris Heaton-Harris, a Conservative, goes next.
Q: This was a big chunk of information. I cannot understand why you either did not take it, if it was offered to you, or you did not ask for it.
Jennie Grainger, the HMRC director general for enforcement and compliance, says the French had the information. But they had to carve it up on a country by country basis.
Heaton-Harris says HMRC believed that the information it got from the French was the same as the information it could have got in 2013. But it did not check, he says.
Homer says it did check.
Q: What what if the illustrious Guardian missed something? Why not check the original material?
Homer says it would not be cost-effective to analyse the same set of information twice.
Updated
Homer says HMRC thinks it has looked at all the cases that have come to light.
It is carrying out checks. And it will look at new information. But there is nothing to suggest it is missing significant amounts of information, she says.
Hodge says one of the reasons she is angry with Homer is that HSBC has just sat there, without seeking out information.
Homer says that is not true. “We are very proactive”.
She says they have told Panorama they would take the information.
Then ask for it, says Homer.
We have, says Homer.
Q: Why did you not contact Herve Falciani, the HSBC whistleblower?
Homer says it was because they thought they had all the information he had provided.
Within the last few information has come to light suggesting he had more information.
For example, the Guardian has suggested that there were more than 6,800 accounts.
Q: The Panorama team have offered to give you their information. But you did not take them up on this. You should talk to Falciani. Did you ask for money?
Not that I’m aware of, says Homer.
Q: You were offered the data in 2008?
Homer disputes that.
Q: That is in the public domain.
Not to my knowledge, says Homer.
Margaret Hodge says, when you read some of these stories, “it is pretty outrageous what was going on”.
There was evidence of tax evasion, not tax avoidance. This is very serious, she says.
She says this leaves her believing “that you are not serving the British taxpayer”.
Homer says more information has now appeared in the last few days.
HMRC is going to take this up with the media.
Q: Why did you not talk to the French authorities in 2010?
We did, says Homer.
Homer says HMRC has now reached settlement on all bar 130 of the 1,100 cases it identified.
She says prosecutions are only one part of the tool kit. HMRC is concerned about recovering money.
It has recovered £135m. She says she does not accept that this is worse than other countries.
Margaret Hodge says the French recovered £200m and the Spanish recovered £185m. But they had fewer names to look at, she says.
Homer says HMRC can only recover money that is due. She says three quarters of the names did not owe money.
Q: Is that because of non-dom status?
Partly, says Homer.
Homer says she wants to talk about HSBC.
Solace is the name of the HMRC operation looking at the names on the leaked disc.
HMRC got the data in April 2010.
Over 300 staff were working on this project, she says.
They looked at 6,800 entities. They identified 3,600 individuals, and found 3,200.
They sorted them into three groups: some who might be prosecuted (150), others who might be considered for cases of serious fraud (500); and another who might be followed up for unpaid tax (around 500).
The others did not seem to have done anything wrong.
HMRC fast-tracked those in the first group. Some moved into the compliance sections. After talks with the CPS, only one case passed the test for prosecution.
Margaret Hodge starts with HSBC.
Q: When a bank actively supports a client by giving them a credit card, and the customer withdraws money that should have been declared for tax purposes in the UK, is the bank facilitating tax evasion?
It depends, says Lin Homer, on a range of factors.
Q: If a banker sits down with a client and tells him how to withdraw $2m in cash from an undeclared account, is the bank facilitating tax evasion or tax avoidance?
Homer says she cannot say that easily.
When HMRC pursues a prosecution, it takes 44 months to get it to court. These are not simple matters, Homer says.
Hodge says Homer has been in the job three years and has had time to think about this.
The public accounts committee hearing is starting.
Margaret Hodge, the committee chairman, starts by telling Lin Homer that it is not for her to decide who appears before the committee.
She expects Edward Troup to appear in March, she says.
On the World at One Kenneth Clarke, the Conservative former chancellor, explained why HMRC prosecutes so few people for tax evasion.
HMRC rarely prosecutes many of these case because they are hugely expensive to mount. You have got wealthy people who will mount a defence. It is extremely difficult to prove a crime.
Updated
Labour labels Cameron 'dodgy' after he fails to answer question about tax talks with Green
My colleague Nicholas Watt has filed a new story about Labour attacking David Cameron over his failure to reveal whether he discussed tax dodging at HSBC with Lord Green. Here’s how it starts.
Labour has accused David Cameron of acting as a “dodgy prime minister” after he failed on four occasions at PMQs to say whether he had discussed tax avoidance at HSBC with Lord Green before appointing him as a minister in 2011.
As Ed Miliband claimed there was something rotten at the heart of the Conservative government after the prime minister appointed Green four months after the allegations about HSBC entered the public domain, Downing Street insisted that Cameron had followed correct procedures.
Downing Street was forced to defend the prime minister’s role in appointing Green in January 2011 after the prime minister sidestepped four questions – one from Miliband and three from Labour backbenchers – about whether he had spoken to the peer about tax avoidance at HSBC. ...
In his most detailed response – to the Labour MP for Washington and Sunderland West Sharon Hodgson – the prime minister said: “When I appointed Stephen Green every proper process was followed. I consulted the cabinet secretary, I consulted the director for propriety and ethics and, of course, the House of Lords appointments commission now looks at someone’s individual tax affairs before giving them a peerage. I made the appointment, it was welcomed by Labour and three years later they were still holding meetings with him.”
Labour accused the prime minister of acting in a “ludicrous” manner for failing to say whether he had personally held discussions with Green about tax avoidance at HSBC and the government’s claim that ministers had no idea about the allegations at the time of his appointment. “I would use the word ludicrous,” a Labour spokesman said of the prime minister’s refusal to answer the question directly.
MPs question Lin Homer, HMRC chief executive, over HSBC
The public accounts committee is about to start taking evidence from Lin Homer, chief executive of HM Revenue and Customs.
She is giving evidence alongside Indra Morris, director general of tax and welfare at Treasury.
It is a general session on tax, but the HSBC revelations will be coming up.
I will be covering the evidence but, as as the session goes along, my colleague James Ball, who has covered the HSBC story in detail, will be posting snippets of analysis.
Here’s a Guardian video with excerpts from PMQs.
Lunchtime summary
- Ed Miliband has spoken of a revolving door between HSBC and Conservative party headquarters, describing David Cameron as a “dodgy prime minister surrounded by dodgy donors”. As Patrick Wintour reports, at PMQs the Labour leader said there is something rotten at the heart of the Conservative government, and accused Cameron of turning a blind eye to allegations that HSBC’s Swiss subsidiary was involved in aiding tax avoidance.
We will also consult on establishing a new independent National Whistleblowing Guardian as a full time post within the CQC to review processes followed in the most serious cases where concerns have been raised about the treatment of whistleblowers.
Because too often the system has closed ranks against whistleblowers, making it impossible for them to find another job, I can today announce that the Government will legislate to protect whistleblowers who are applying for NHS jobs from discrimination by prospective employers. With Opposition support these necessary regulation making powers could be on the statute book in this Parliament.
We will also provide practical help through Monitor, the Trust Development Authority and NHS England to help whistleblowers find alternative employment. The three bodies have agreed a compact for action on this issue and will publish the detailed arrangements later this year.
- Cameron has announced that the government wants to roll out free wifi on all trains by 2017. He told MPs at PMQs.
It’s vital for business and individuals to be able to access wifi and do their work and other contact while they’re on trains. And I’m pleased to announce plans that will see the roll out of free Wifi on trains across the United Kingdom from 2017.
On the World at One Chuka Umunna, the shadow business secretary, said David Cameron was wrong to say at PMQs that Umunna had invited Lord Green on a trade mission.
What he said was that I invited Stephen Green on a trade mission, which is categorically not true. I invited him to a local event for small businesses organised by Lambeth Council and the Federation of Small Businesses. I am not aware that Lambeth is a foreign country, so let’s just be clear on one thing, I did not invite him on a trade mission.
I do not disagree with Ken [Clarke] that [Green] was seen and respected as a trade minister. However if you are inviting the trade minister to come and talk to your local business, you are entitled to expect that the prime minister who has appointed him has carried out due diligence.
I’ve taken the quote from PoliticsHome.
A Labour aide has been in touch to point out that Lord Paul, a former Labour donor who has had an HSBC Swiss bank account, is no longer a party member. He resigned from the party in 2010, and sits as a non-affiliated peer.
Parliament’s intelligence and security committee has put out a statement on claims that MI5 or MI6 asked for information to be redacted from the US senate committee’s report on the torture of terrorist suspects to conceal evidence of British involvement in the mistreatment of detainees.
The committee says it is satisfied this did not happen. Here’s an extract from its statement.
It has been alleged that the UK may have requested redactions to the Senate report to conceal evidence of UK complicity in the mistreatment of detainees. From the evidence we have seen and heard, we conclude that these allegations are unfounded.
The UK Agencies did request redactions to the primary material which was used by the Senate Committee when drafting its full report. We have seen these requests and can confirm that all were directly related to national security interests. They do not concern UK involvement or complicity in, or awareness of, the mistreatment of detainees.
The CIA themselves proposed redactions to the Executive Summary and Minority Views relating to UK intelligence material, to which the UK Agencies agreed. From the evidence we have seen, the CIA proposals related directly to national security interests, and the UK Agencies did not request any additional redactions to these documents. However that evidence is limited. We note that the UK Agencies were at no stage provided with the draft reports. Rather they were given sight of heavily-edited extracts, which they could not retain. We have seen the Agencies’ internal file notes, but not the specific redactions proposed by the CIA. Subsequently, the Senate Committee objected to some of the CIA’s proposals, and there therefore needed to be further consultations between the CIA and the UK Agencies about the redactions previously discussed.
PMQs - Verdict from the Twitter commentariat
And this is what political journalists and commentators are saying about PMQs on Twitter.
Views are mixed.
For Cameron
With all the vested power of a BBC/Guardian stitch up behind him, Ed Miliband still can't dribble the ball into an open goal. #PMQs
— Harry Cole (@MrHarryCole) February 11, 2015
Oh dear. EdM cannot even win on class war. #PMQs Ghastly, ghastly stuff on a serious subject.
— John Rentoul (@JohnRentoul) February 11, 2015
For Miliband
Dodgy Dave isn't looking happy after his Mili mauling. Did Cameron know or discuss tax avoidance with Con Minister Lord Green of HSBC? #pmqs
— Kevin Maguire (@Kevin_Maguire) February 11, 2015
Dodgy PM, bang to rights, Tory rotten heart, defending tax avoiders like he did Andy Coulson - Miliband's chucked the pink bus at Cameron
— Kevin Maguire (@Kevin_Maguire) February 11, 2015
A draw?
Some strong punches from EdM on tax avoidance Cameron counter attack however meant they didn't land too hard. Aggressive exchange tho #PMQs
— Chris Ship (@chrisshipitv) February 11, 2015
The look Cameron just gave George Osborne at the end of #PMQs seemed to me to be "well that could have been worse" ...
— Chris Ship (@chrisshipitv) February 11, 2015
Cameron putting up good bluster to dodge questions over his appointment of former HSBC boss as a minister. Deflected the donor attacks too.
— Stuart Millar (@stuartmillar159) February 11, 2015
General comments
Ed Miliband raising the stakes there. Personally accusing David Cameron of being "rotten". Hardly edifying #PMQs
— Tim Montgomerie ن (@montie) February 11, 2015
(As an aside, most aggressive heckling today coming from female Labour MPs... Lest anyone think blokes have monopoly on shouting). #pmqs
— Isabel Hardman (@IsabelHardman) February 11, 2015
Tax attax: Cameron has come up with a few good facts to respond to Ed's qus, arguing Labour allowed lax regime #PMQs
— Isabel Hardman (@IsabelHardman) February 11, 2015
A row between Cameron and Miliband over party donations and bank accounts... One of those #pmqs that Farage or Bennett must enjoy...
— Sam Macrory (@sammacrory) February 11, 2015
Another unedifying week at #PMQs. Even the Tory sycophants hollering “more” from the backbenchers sounded like they can’t be arsed
— Mark Ferguson (@Markfergusonuk) February 11, 2015
Something almost heroic about EdM's failure at #PMQs. He simply couldn't decide what the point was.
— John Rentoul (@JohnRentoul) February 11, 2015
Labour ensuring questions about Tories and HSBC will run after PMQs. Thus a productive session.
— Isabel Hardman (@IsabelHardman) February 11, 2015
Miliband upped the ante with personal attacks today, labelling Cameron “dodgy” and “rotten”. Might regret that decision in the coming weeks.
— Callum Jones (@CallumIJones) February 11, 2015
Miliband's "something rotten in the Tory party" a bit Shakespearean. From a plot involving doing over your brother to take the throne.
— Adrian Pearson (@Adrian_Pearson) February 11, 2015
PMQs - Verdict
PMQs - Verdict: Often PMQs is hardest for an opposition leader when he or she is confronted with what Westminster has declared “an open goal”. Expectations soar and, almost inevitably, they’re not met. That’s what happened to Ed Miliband today. He did not really lose and, if you had turned on the TV at 12pm with no knowledge at all about what might be coming up, you would have thought that he did rather well. But, as I said earlier, in context it felt like a missed opportunity.
On the plus side for Miliband, as a colleague has just pointed out in my office, his words read a lot better on paper (or in pixel) than they sounded in the chamber. (See 12.47am.)
And, half an hour after PMQs, the Labour charge against Cameron - that he did not discuss tax dodging at HSBC with Lord Green when he should have done - looks more robust than it did at 12.12pm. That’s because other Labour MPs asked Cameron about this, meaning that his evasions started to look every more shifty. And the prime minister’s spokesperson hasn’t helped. (See 12.49pm.)
That said, it still feels as if Cameron has managed to sidestep a reputational clobbering. Why? Partly because Miliband chose to start by making this an issue about Tory donors and Cameron was able to respond with the point about Labour having donors with HSBC accounts in Switzerland too. Miliband said they had not been donors to the party while he was in charge, but the entire party donation system is so murky that it is hard to believe that any one party gains much from a row about it. But Cameron also benefited from being able to point to some significant steps that the government has taken to address the tax avoidance issue.
At the post-PMQs huddle journalists have been trying to get an answer from the prime minister’s spokesperson about whether David Cameron discussed tax evasion at HSBC with Lord Green. According to Paul Waugh, they haven’t been making much progress.
Lobby: Did Cam discuss HSBC tax with Green? No10:"He answered that". Lobby: No he didn't. No10: "He was asked the Q + he gave his answer"
— Paul Waugh (@paulwaugh) February 11, 2015
Cameron v Miliband over HSBC - What they said
Here are the highlights from the exchanges between David Cameron and Ed Miliband over HSBC. Miliband began by raising a story published by the Guardian less than an hour before PMQs started.
I’ve taken the quotes from PoliticsHome’s excellent PMQs blog.
Miliband: An hour ago we learned that linked to the HSBC tax avoidance scandal are seven Tory donors, including a former treasurer of the Tory party who between them have given nearly £5m to the Conservative party. How can the prime minister explain the revolving door between Tory party HQ and the Swiss branch of HSBC?
Cameron: I saw this before coming to prime minister’s questions. And one of the people named is the Labour donor Lord Paul who funded Gordon Brown’s election campaign. I’m very clear: people should pay their taxes in our country and no government has been tougher than this one in chasing down tax evasion and tax avoidance
Miliband: None of these people have given a penny on my watch and he’s up to his neck in this. Let’s take Stanley Fink, who gave £3m to the Conservative party. He actually appointed him as Treasurer of the Tory party and gave him a peerage for good measure. So now can he explain what steps he’s going to take to find out about the tax avoidance activities of Lord Fink.
Cameron: When people donate to the Conservative party they don’t pick the candidates, they don’t choose the policies, they don’t elect the leader. When the trade unions fund the Labour party they pay for the candidates, they pay for the policies, and the only reason he is sitting there is because a bunch of trade union leaders decided he was more left-wing than his brother
Miliband: He can’t get away from it. He’s a dodgy prime minister surrounded by dodgy donors. Now, he didn’t just take the money. He appointed the man who was head of HSBC as a minister. Mr Speaker, it was in the public domain in September 2010 that HSBC was enabling tax avoidance on an industrial scale. Are we seriously expected to believe that when he made Stephen Green a minister four months later he had no idea about these allegations
Cameron: I’m glad he’s brought up the issue of Stephen Green who was a trade minister in this government. This is the same Stephen Green who Gordon Brown appointed as head of his business advisory council. This is the same Stephen Green who Labour welcomed as a trade minister into the government. And it’s the same Stephen Green who the shadow bsuiness secretary, looking a bit coy today, invited on a trade mission as late as 2013 ...
Last week the Labour leader asked me six times about the tax treatment of hedge funds. Now it turns out that the treatment he’s complaining about was introduced in the Autumn of 1997 by a Labour government. It further turns out that it was extended in 2007. Now, who was in power in 2007? Labour. Who was the City Minister in 2007? I think we’ll find it was Ed somebody.
Miliband: He is pleading ignorance as to what was happening with Stephen Green but today we discover the minister in charge issued a press release in November 2011 which referred to the investigation into the HSBC Geneva account holders. Does the prime minister expect us to believe that in Sptehen Green three years as minister he never had a conversation with him about what was happening at HSBC?
Cameron: Why did Labour welcome Stephen Green as a trade minister? Why were they still booking meetings with him in 2013. My responsibility is the tax laws of this country. And no one has been tougher.
Let me remind him of what we found: Hedge funds cutting their taxes by flipping currencies. Allowed under Labour, banned under the Tories. Foreigners not paying stamp duty. Allowed under Labour, banned under the Tories. Banks not paying tax on all their profits. Allowed under Labour, banned by the Tories. Those two in the Treasury were the friends of the tax-dodger. We’re the friend of the hard-working tax payer.
Miliband: He’s bang to rights - just like his donors. And doesn’t this all sound familiar? The prime minister appoints someone to a senior job in government. There are public allegations but he doesn’t ask the questions. He turns a blind eye. Isn’t this just the behaviour we saw with Andy Coulson?
Cameron: What have we seen this week? He can’t even go in front of a business audience because he’s offended every business in the country. He can’t go to Scotland because he’s toxic. They can’t talk to women because they’ve got a pink bus touring the country. They’ve even offended Britain’s nuns. No wonder people look at Labour and say they haven’t got a prayer.
Updated
Jacob Rees-Mogg, a Conservative, says Sir Brian Leveson in a recent report recommended curtailing jury trial.
Cameron says jury trial is very important. He does not want to see it reduced.
Labour’s Graham Allen says levels of voter disengagement are unacceptable. Will Cameron commit himself to a convention that would give everyone a copy of the nation’s rulebook, such as a written constitution, so that everyone feels part of our democracy.
Cameron says he respects Allen, but he doubts that another constitutional convention is the answer. It is more important to address problems, like English votes for English laws. It is disappointing that Labour don’t agree.
Labour’s Phil Wilson asks Cameron to confirm he never had a conversation with Lord Green about tax evasion.
Cameron says Green’s appointment was welcomed by Labour. The government has cracked down on this more than Labour.
Labour’s Chi Onwurah says there are adverts in Newcastle asking people to report benefit cheats. Why does Cameron not feel as strongly about tax evasion?
Cameron says he does feel strongly about this. For example, under Labour people could cut their tax by being paid through a company, or being paid through a trust. Both practices have been banned by the government.
Sir Peter Tapsell, the Conservative MP and father of the House, says it is often wise to acknowledge the concept of spheres of influence. Ukraine is of no strategic importance to the UK. But Greece is. And there is a danger of Greece falling into the Russian sphere of influence without a shot being fired.
Cameron says making sure that aggression is not rewarded in relation to Ukraine is important.
Cameron says the government is determined to listen to whistleblowers in the NHS, unlike Labour.
Karen Lumley, a Conservative, says Labour campaign bus for women is a “patronising stunt”.
Cameron says the wheels are falling off the bus of Labour’s women’s campaign. Surprise, surprise, it is not going to be driven by a frontbencher, he says; it is going to be driven by Unite.
Labour’s Sharon Hodgson asks if Cameron had conversations with Lord Green about tax avoidance at HSBC. And, if not, why not?
Cameron says when he appointed Green efvery proper process was followed. He consulted the cabinet secretary, and the official in charge of ethics. The House of Lords appointments committee also approved the appointment. Labour welcomed the appointment, and three years later were still holding meeting with him.
Labour’s Michael Connarty says the last Labour government prosecuted more companies for tax evasion than this one has done.
Cameron says he has put tax evasion at the top of the G20 agenda. There are no information sharing systems with countries, including Switzerland. These problems took place while Labour was in power. Labour only started talking about this after the government acted, he says.
Labour’s John Mann says increasing security around synagogues cannot wait until May.
Cameron praises Mann for the work he has done on this. He has ensured the police are in contact with the relevant organisations. He is happy to meet Mann to discuss this.
Cameron says the government is committed to seven-day opening for GPs in England. He urges the NHS in Wales, and the Labour government in Wales, to extend access to GPs in Wales.
Cameron says prosecutions for tax evasion have gone up five-fold since 2010.
But, in this country, the prosecuting authorities are independent of government. That is different in other countries. There is a word for that: corruption. But that is what Labour seems to be proposing, he says.
Peter Lilley, a Conservative, says the government has presided over the creation of 2m private sector jobs.
Cameron says Lilley is right. He says Miliband said the goverment’s policies would cost 1m jobs. He was 1m% wrong.
Labour’s Peter Hain asks about a constituent who is losing his free motorbility scooter.
Cameron says he will look into this.
Cameron says he is pleased to announce plans that will see the roll out of free wifi on trains from 2017. The government will contribute £50m to this.
Updated
Asked why the government is not giving public sector workers in the pay rise, Cameron says everyone in the NHS will get at least 1%, and that, because of progression pay, some workers will get 2, 3 or 4%.
Snap PMQs verdict
Snap PMQs Verdict: Miliband failed to get through Cameron defences. Not so much a loss as a missed opportunity ...
Updated
Miliband says Cameron was turning a blind eye. This is what we saw with Andy Coulson.
Cameron says this is desperate stuff. Miliband cannot go in front of business, because he has offended them. He cannot go to Scotland, because he is toxic. He has even offended nuns.
Miliband says there is something toxic at the heart of this government. It’s Cameron.
Cameron says Labour is desperate because they are losing.
Miliband says Cameron is a dodgy leaders surrounded by dodgy donors. Does Cameron really think people will believe that Lord Green knew nothing about the problems with HSBC when he was made a minister.
Cameron says Labour welcomed Green’s appointment as a minister. And Green went on a trade mission with a Labour figure. Last week Miliband asked six times about the tax treatment of hedge funds. The policy was introduced in the autumn of 1997 by Labour, and it was extended in 2007, by Labour. At the time the City minister was “Ed Somebody”.
Miliband says Cameron does not care about tax avoidance, but on this day he will be held accountable. In 2011 the minister in charge issued a press release about the investigation into HSBC account holders. Will people believe Cameron never had a conversation with Green about this?
Camerons says Labour welcomed Green’s appointment, and were holding meetings with him until 2013. Labour were the friends of the tax dodgers. Cameron says he stands up for hard working people.
Ed Miliband raises the latest Guardian story about Tory donors. How can Cameron explaing the revolviung door between the Conservatives and tax avoidance?
Cameron says he has seen the list. It includes Lord Paul, who funded Gordon Brown’s election campaign.
Miliband says none of those people gave to Labour under his leadership. Lord Fink gave £3m, and was a Conservative Treasurer. Has he investigated Fink’s tax avoidance?
Cameron says that, unlike Labour donors, Tory donors don’t pick the party leader. Miliband is leader because the unions decided he was more leftwing than his brother.
Updated
PMQs
Tim Yeo, a Conservative, asks David Cameron if he remembers the 1983 election, when the Tories won a landslide. Unemployment then was 3m, and inflation was 8%. They are better now. Margaret Thatcher was helped by a leftwing opposition leader.
David Cameron says he could not vote in 1983. This government is cutting unemployment, and every Labour government puts it up, he says. The government has created 1,000 jobs for every day it has been in office. Ed Miliband says jobs would be lost. He should apologise,
Labour's HSBC questions for the government.
Earlier this week Labour wrote to George Osborne, the chancellor, with some questions about the HSBC affair. Here are the three key questions Labour posed.
In November 2012 a senior HMRC official told the Times that the Government had adopted “a selective prosecution policy” towards cases related to HSBC. Later that month HMRC told the Public Accounts Committee that “another dozen” criminal prosecutions were to follow. However, there have been none since. It seems HMRC took a deliberate strategy to minimise rather than pursue prosecutions, which would explain why just £135m has been recouped. Can you explain why only a single prosecution has been made given the scale if the alleged wrongdoing and what role Ministers played in deciding on “a selective prosecution policy” for those accused of tax evasion or avoidance? People would expect you to have at least been aware of a decision of this seriousness.
Lord Stephen Green was Chairman of HSBC 2006-2010 and was appointed a Conservative Peer in September 2010 and then as Trade Minister by David Cameron in January 2011. Given that, as the Financial Secretary said [on Monday] , the Government was made aware of allegations of wrongdoing against HSBC in May 2010, eight months before Mr Green’s appointment to government, failure to ask probing questions would have to be seen as wilfully negligent. As Chairman of the Bank, Mr Green would either have been aware of malpractice or, if not, surely questions would arise as to why not and his fitness for such a senior government post of Trade Minister. Can you provide details of the due diligence carried out by the Government in advance of Lord Green’s appointment concerning allegations against HSBC and Lord Green’s role in relation to them?
When the French authorities passed the HSBC caseload to HMRC in May 2010 we would expect the Government to have taken swift action. At what point were Ministers made aware of its existence, when did you and the Prime Minister personally find out, and what action was then taken?
Updated
Here’s a good spot from my colleague Patrick Wintour.
Many examples of people contemporaneously spotting link between Stephen Green & his Swiss subsidiary. This one good. http://t.co/tJq3JdJPRV
— Patrick Wintour (@patrickwintour) February 11, 2015
PMQs is starting in a few minutes.
Pretty clear that PMQs is going to be dominated by accusations of tax dodging. Suspect the session won’t do much for politics' reputation
— James Forsyth (@JGForsyth) February 11, 2015
You can read all today’s Guardian politics stories here. And all the politics stories filed yesterday, including some in today’s paper, are here.
As for the rest of the papers, here’s the PoliticsHome list of top 10 must-reads, and here’s the ConservativeHome round-up of today’s politics stories.
And here are two stories I found particularly interesting.
David Cameron has warned cabinet ministers to clear a mounting backlog of government work amid fears that Whitehall is starting to grind to a halt before the general election.
The prime minister, already irritated by claims of a “zombie parliament”, made clear his frustration at the slowing pace of government in cabinet, according to senior figures. “He was very clear that we have to keep going at full pace for the finishing line,” said one senior minister.
Donations to Labour from individuals have slumped to less than half of their level during the last parliament, highlighting the party’s difficulty in appealing to wealthy business figures.
The opposition party received just £8.7m from private donors in the current legislative session, compared to £20.7m in the same period of the last parliament, according to an analysis by the Financial Times of Electoral Commission figures.
New cameras are going to be installed in the House of Commons chamber to provide a more flattering view of MPs, the Press Association reports.
Voters are due to see a better side of their MPs after the general election - with new camera angles being introduced in the House of Commons.
The ruling Commons Commission has approved the use of more flattering eye-level shots following an “off-air” trial last month.
The move comes after a BBC documentary team was allowed to film on the floor of the House during prime minister’s Questions for the first time.
The handful of high, fixed camera positions in the Commons have long been a source of irritation among MPs and broadcasters.
The front benches come off particularly badly as a result, with bags under their eyes and receding hairlines cruelly emphasised.
Despite a series of trials, there has previously been resistance to extra positions at eye level, with concerns expressed that MPs’ view of the Speaker could be obscured.
But the latest scheme, with cameras discreetly mounted looking along the government and opposition benches, has won approval from John Bercow and the commission.
Minutes of its meeting this week state: “Following the success of a recent trial, the Commission endorsed a proposal to install additional cameras in the House of Commons Chamber.”
The new cameras are expected to go live after the election.
Tories raise more than £5m from HSBC customers with Swiss bank accounts
The Guardian has just revealed that the Conservatives raised more than £5m from HSBC customers with Swiss bank accounts. Labour has also benefited from cash and gifts in kind worth over £500,000, as well as a loan for £2m.
Here’s our story. And here’s how it starts.
Conservative donors, peers and a high profile MP are listed among the wealthy who legally held accounts in Switzerland with HSBC’s private bank, for a wide variety of reasons.
Their ranks include Zac Goldsmith, MP for Richmond Park, plus his brother the financier Ben Goldsmith, and a Swiss resident, German-born automotive heir Georg von Opel, who has donated six-figure sums in the past two years.
Peers named in the HSBC files include Lord Sterling of Plaistow, the P&O shipping and ports entrepreneur who was ennobled by Margaret Thatcher, and Lord Fink, who was a party treasurer under David Cameron and has given £3m to the Conservatives.
Zac Goldsmith has, with his brother Ben and their mother Lady Annabel, donated over £500,000 in cash and in kind to the Conservatives.
The Conservatives have raised over £5m from HSBC clients recorded with Swiss accounts, while Labour has also benefited from cash and gifts in kind worth over £500,000, as well as a loan for £2m.
Boris Johnson, the Conservative mayor of London, has urged David Cameron to hold the planned EU referendum next year, not in 2017. Speaking on LBC, he said he agreed with the British Chambers of Commerce director general, John Longworth, about this.
Let’s get it done and knock it on the head and do it for the good of Europe. This problem is not going away. The whole Eurozone is mired in low growth, low productivity, they have a very anti-competitive environment there, a terrible system of regulation coming from Brussels.
Pat McFadden, the shadow Europe minister, says Tories like Johnson are being “hugely irresponsible”.
Boris Johnson is just the latest senior Conservative to try and use the issue of a European referendum to jockey for position within the Party.
The very fact that the Conservatives seem more interested in talking about the date, than about change in Europe shows that they are more interested in exit than in reform.
A Europe policy built on constantly shifting sands all adds to the risk and uncertainty for British business and jobs.
It is hugely irresponsible to play with Britain’s future in this way. The changing position on Europe is not the exercise of leadership. It is the absence of leadership.
Harriet Harman, Labour’s deputy leader, has been defending the party’s decision to use a pink van for its women’s campaign battlebus. She told ITV’s Good Morning Britain:
We just wanted an eye-catching colour, so we didn’t want our normal Labour red and this is the colour that it is. But I think the reason it has to be eye-catching is that there’s a big hole in our democratic politics at the moment. And, you know, in 2010 at the last general election, 9.1m women didn’t vote and that’s because they just don’t think that politicians have got any interest in their lives or understand their lives or have got anything to offer to them ...
When we go to Stevenage to launch it today, I think the one thing that women will be discussing with us will not be, actually, probably the colour of the bus; they’ll probably be discussing, you know, whether they get the same pay as men in their workplace, the same opportunities, whether they’re tearing their hair out looking for childcare, whether if they’re looking [after] older relatives they can combine that with work.
Coverage of the bus in the tabloids hasn’t been generous. In the Sun the story has been written up under the headline “Hattie’s batty battlebus”, and in the Daily Mail it’s “Harriet’s pink Barbie bus”, with the sub-head: “How Harriet Har-person, feminist champion, patronises women!”
For the record, here are today’s YouGov GB polling figures.
Labour: 35%
Conservatives: 33%
Ukip: 13%
Greens: 8%
Lib Dems: 6%
Government approval: -19
According to Electoral Calculus, this would give Labour a majority of 16.
And here are election predictions from a variety of organisations.
Elections Etc: Conservatives 282, Labour 279, SNP 41, Lib Dems 23, Ukip 3
Election Forecast: Conservatives 285, Labour 280, SNP 35, Lib Dems 27, Ukip 2
Prof Paul Whiteley: Labour 291, Conservatives 281, Lib Dems 48
(These are all academic forecasts, based on models that using current polling data and make allowance for how polls shift in the run up to an election.)
May 2015: Labour 271, Conservatives 271, SNP 56, Lib Dems 25, Ukip 4
(This is based on current polling, taking into account Lord Ashcroft’s seat by seat polling.)
The Telegraph’s Christopher Hope has a good tale. He says that Edward Troup, HMRC’s tax assurance commissioner, has been pulled from this afternoon’s public accounts committee hearing.
Here’s an extract from his story.
Edward Troup, HMRC’s second permanent secretary, was due to appear alongside Lin Homer, HMRC’s chief executive, and Jim Harra, the director general of business tax, in front of the influential Public Accounts Committee this afternoon.
The session is notionally about the work of HMRC. But the trio were due to be grilled by the MPs about why more action was not taken against a list of 6,000 former clients of HMRC’s Swiss arm whose details were leaked to HMRC in 2010.
However HMRC told the committee this morning at the 11th hour that he will not be attending.
Margaret Hodge MP, the committee’s chairman, is understood to be furious about the last minute withdrawal and has ordered him to appear on 4 March at a special hearing into HSBC and the controversy about historic tax avoidance at its Swiss subsidiary.
And here’s some reaction to Nicola Sturgeon’s comments.
From Margaret Curran, the Labour MP and shadow Scottish secretary
Scotland can’t afford another five years of David Cameron, but Nicola Sturgeon wants to help the Tories get back into power. Every vote for the SNP in May is another boost for David Cameron, and makes it more likely that he will be prime minister for another five years.
Labour has a fair plan to balance the books but the SNP have stood against Labour’s progressive policies, such as the 50p tax for top earners.
From Alistair Carmichael, the Lib Dem Scottish secretary
All the bombast in the world will not change the reality that the UK government’s economic strategy is working. Whether Nicola Sturgeon likes it or not, this government has cut borrowing by £52n from the level we inherited. That’s why the markets have regained confidence, the cost of borrowing and mortgages is at a record low, and we are vying with the United States for the strongest economic growth in the G7. We have achieved this despite the continued economic trouble affecting our immediate partners, especially our largest trading partner - the eurozone.
If the first minister has something serious to say on this subject matter, now is the time to say it. By how much would she raise taxes, and by how much would she cut spending in the next parliament? Or does she want to go back to the days of high borrowing, high mortgage costs, and an ever-bigger debt problem for the next generation to pay off?
Sturgeon rejects austerity and calls for extra £180bn public spending
Nicola Sturgeon, Scotland’s first minister, is delivering an anti-austerity speech in London this afternoon. She previewed her argument on the Today programme.
Here are the key points.
- Sturgeon said that she wanted public spending increases in the next parliament, not cuts, and that her plans would free up £180bn for public services.
If over the life of the next parliament we were to allow modest, responsible increases in public spending, say 0.5% in real terms, then debt and deficit would still be falling as a percentage of GDP over these years but we’re free up something in the region of £180bn over the UK to invest in infrastructure, innovation, growing the economy and public services.
- She acknowledged that reducing the deficit was important, but she said other factors needed to be taken into account in fiscal policy too.
In terms of what I’m setting out you’d have debt and deficit reducing so I’m not denying it’s important to get the deficit under control and start reducing debt. What I’m arguing is that to look at deficit in isolation is far too narrow because although that’s important, it’s also important to have stronger, sustainable, more solidly base economic growth.
- She said austerity had failed.
I’m going to make the argument that austerity has failed. It’s failed on the terms the coalition government have set for it. George Osborne said in 2010 that next year he’d have a £6bn surplus on his current spending – in actual fact he’s going to have a £49bn deficit. Austerity has failed and it’s time for a different approach. I think it is important that we reduce the deficit and the debt and what I will set out is a different way of doing that.
- She said she hoped SNP demands would influence a future Labour government.
I would certain hope, if there was a Labour government dependent on SNP support, which actually is the most popular preferred outcome of people in Scotland, then we could persuade and influence a Labour government to take a more moderate approach to deficit reduction.
- She said the SNP would not support Labour if it backed austerity.
I am not going to support governments that plough ahead with austerity, that damage the poorest in society. A Labour government that looked to the SNP for support would have to moderate its position in that regard. That would be popular not just with SNP supporters but I’m sure with a lot of traditional Labour supporters in Scotland and across the rest of the UK as well.
- She said many people in Labour supported her approach.
I am sure there are many voices within the Labour party who wish the Labour party was arguing this more progressive, moderate, balanced, fair approach to reducing the deficit.
- She appeared to rule out talks with Labour about a possible deal before the election. She was concentrating on getting as many SNP MPs elected as possible, she said. Asked her her relations with Ed Miliband, she said she did not know him well and had only met him a couple of times.
I’ve taken the quotes from PoliticsHome.
Government amendment defending its record on tax avoidance
And here’s the government’s amendment to the Labour motion on tax avoidance. (See 9.13am.)
Line 1, leave out from ‘House’ to end and add ‘notes that while the release of information pertaining to malpractice between 2005 to 2007 by individual HSBC accountholders was public knowledge, at no point were Ministers made aware of individual cases due to taxpayer confidentiality or made aware of leaked information suggesting wrongdoing by HSBC itself; notes that this Government has specifically taken action to get back money lost in Swiss bank accounts; welcomes the over £85 billion secured in compliance yield as a result of that action, including £850 million from high net worth individuals; notes the previous administration’s record, where private equity managers could pay a lower tax rate than their cleaners, very wealthy homebuyers could avoid stamp duty and companies could shift their profits to tax havens; further recognises that this Government has closed tax loopholes left open by the previous administration in every year of this Parliament, introduced the UK’s first General Anti-Abuse Rule, removed the cash- flow advantage of holding onto the money whilst disputing tax due with HMRC, and allowed HMRC to monitor, fine and publicly name promoters of tax avoidance schemes; notes this Government’s leading international role in tackling base erosion and profit shifting; welcomes the commitment to implement the G20-OECD agreed model for country-by-country reporting and rules for neutralising hybrid mismatch arrangements; notes the role of the diverted profits tax in countering aggressive tax planning by large multinationals; supports the Government’s adoption of the early adopters initiative; and recognises that as a result the UK is collecting more tax than ever before.’.
Updated
#UKGENERALELECTION2015 85 DAYS TO GO
— General Election (@UKELECTIONS2015) February 11, 2015
And here’s today election fact from the Press Association.
Peers are barred from being prime minister. The last to be prime minister was Tory the Marquis of Salisbury who retired in 1902. Conservative the Earl of Home had to renounce his peerage when he went into Downing Street in 1963. As Sir Alec Douglas Home, he secured a seat in the Commons after winning a by-election at Kinross and Perthshire West.
On Newsnight last night Matthew Hancock, the Conservative minister, was asked to defend the government’s record dealing with the HSBC allegations. It was not a particularly happy experience for him.
Asked repeatedly by the presenter, Evan Davis, to explain what ministers knew about the allegations, which, as the Guardian reports, where discussed openly in a Commons select committee in 2011 in general terms, Hancock said it was “not appropriate” for ministers to know about specific investigations by HMRC into individuals.
(But the complaint is not that ministers did not know about about an investigation into Mr X, or whoever, but that the whole problem with HSBC’s Swiss arm seems to have been ignored.)
Hancock was on slightly stronger ground when asked if he understood why people were so angry about the fact that only one of the 1,100 people who have been investigated has been prosecuted (a key fact in the Labour motion - see 9.13am). Hancock replied:
I, for instance, have been one of the leading people saying that those at the head of large banks that are systemically important should be liable for criminal prosecutions if they behave negatively. Because people need to know when people in positions of authority like that make a big mistake then they are held to account. And so I completely understand the anger. Sometimes these prosecutions are very complicated. I don’t know the details of it – it’s best that I don’t. But, boy, do these people who make these decisions need to be held to account.
Hancock was referring to the way that he personally pushed for penalties to be tightened for bankers who behave recklessly.
Labour's motion condemning government's record over HSBC and tax avoidance
Here’s the Labour motion on tax avoidance that MPs will debate later.
That this House notes with concern that following the revelations of malpractice at HSBC bank, which were first given to the Government in May 2010, just one out of 1,100 people who have avoided or evaded tax have been prosecuted; calls upon Lord Green and the Prime Minister to make a full statement about Lord Green’s role at HSBC and his appointment as a minister; regrets the failure of the Government’s deal on tax disclosure with Switzerland, which has raised less than a third of the amount promised by ministers; welcomes the proposals of charities and campaigning organisations for an anti-tax dodging bill; and further calls on the Government to clamp down on tax avoidance by introducing a penalty regime for the General Anti-Abuse Rule, which is currently too weak to be effective, closing the Quoted Eurobonds exemption loophole, ensuring that hedge funds trading shares pay the same amount of tax as other investors, introducing deeming criteria to restrict false self-employment in the construction industry, and scrapping the shares for rights scheme, which the Office for Budget Responsibility has warned could cost £1 billion in avoidance.
And this is what Ed Balls has said about the action Labour would take on tax avoidance.
David Cameron and George Osborne have totally failed to tackle tax avoidance in the last five years. They have failed to close the loopholes we have highlighted. And the amount of uncollected tax has risen under this government.
I am determined that the next Labour government will act where the Tories have failed. “We will close loopholes that cost the exchequer billions of pounds a year, increase transparency and toughen up penalties. And we will act in our first finance bill.
The revelations about how HSBC allowed its Swiss banking arm to collude in multi-million pound tax dodging have been astounding - for example, they seem to be turning the Scotsman’s Peter Jones into a revolutionary - and today they’re going to dominate proceedings in the House of Commons. They are almost certain to come up at PMQs; then they will features in a public accounts committee hearing with officials from HM Revenue and Customs; and finally they will be debated in the Commons. I will be focusing on all these developments.
As usual, I will try to keep an eye on the other stuff too. Here’s the agenda for the day.
9.30am: Steve Webb, the pensions minister, gives a speech to the Resolution Foundation.
12pm: David Cameron faces Ed Miliband at PMQs.
2pm: Nicola Sturgeon, Scotland’s first minister, gives a speech about how austerity has failed. Sturgeon was on the Today programme earlier. I will post highlights from her interview shortly.
2pm: Justice Lowell Goddard, the new chair of the child abuse inquiry, gives evidence to the Commons home affairs committee.
2.15pm: Lin Homer, chief executive of HM Revenue and Customs, and other HMRC officials give evidence to the Commons public accounts committee.
Around 4.30pm: MPs begin a Labour debate on the HSBC revelations.
As usual, I will be also covering all the breaking political news from Westminster, as well as bringing you the most interesting political comment and analysis from the web and from Twitter. I will post a summary at lunchtime and another in the afternoon.
If you want to follow me on Twitter, I’m on @AndrewSparrow