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MPs question appointment of former bankers' lobbyist in senior tax role MPs question appointment of former bankers' lobbyist in senior tax role
(about 1 hour later)
George Osborne’s decision to appoint a former bankers’ lobbyist as an independent tax adviser has been questioned by an influential parliamentary committee.George Osborne’s decision to appoint a former bankers’ lobbyist as an independent tax adviser has been questioned by an influential parliamentary committee.
The Treasury select committee expressed concerns on Tuesday over Angela Knight’s previous role as chair of the British Bankers’ Association (BBA) during the Libor scandal, her lack of tax knowledge and potential conflicts of interest with current directorships.The Treasury select committee expressed concerns on Tuesday over Angela Knight’s previous role as chair of the British Bankers’ Association (BBA) during the Libor scandal, her lack of tax knowledge and potential conflicts of interest with current directorships.
Knight, a former Tory MP, was appointed chair of the new Office of Tax Simplification (OTS) by the chancellor in December. The office’s remit is to reduce complexities in the tax system, which have been blamed for allowing corporate tax avoidance.Knight, a former Tory MP, was appointed chair of the new Office of Tax Simplification (OTS) by the chancellor in December. The office’s remit is to reduce complexities in the tax system, which have been blamed for allowing corporate tax avoidance.
Knight is also an independent director at the City firm Tullett Prebon , and holds the same position at the financial management firm Brewin Dolphin, is a board member at Transport for London and is a member of the advisory board of the economic consultancy Oxera. Knight is also an independent director at the City firm Tullett Prebon, holds the same position at the financial management firm Brewin Dolphin, is a board member at Transport for London and is a member of the advisory board of the economic consultancy Oxera.
One member of the committee said that her appointment which has been approved but with qualifications, looks suspiciously like another job for “the Tories’ friends”. One member of the committee said that her appointment, which has been approved but with qualifications, looks suspiciously like another job for “the Tories’ friends”.
Labour MP Wes Streeting said: “The qualified endorsement of her appointment does raise questions about the judgment of the chancellor and the seriousness with which he views his responsibilities to make appropriate appointments to important roles.”Labour MP Wes Streeting said: “The qualified endorsement of her appointment does raise questions about the judgment of the chancellor and the seriousness with which he views his responsibilities to make appropriate appointments to important roles.”
The report has been released as Osborne comes under increasing pressure over the government’s attitude towards tax transparency and simplification.The report has been released as Osborne comes under increasing pressure over the government’s attitude towards tax transparency and simplification.
On Monday, the government denied that Google’s deal to pay £130m in taxes owed over the last 10 years amounted to a “lower special rate” for the internet giant.On Monday, the government denied that Google’s deal to pay £130m in taxes owed over the last 10 years amounted to a “lower special rate” for the internet giant.
In the report, MPs questioned whether Knight’s role could still be described as independent because it is outside proper parliamentary scrutiny.In the report, MPs questioned whether Knight’s role could still be described as independent because it is outside proper parliamentary scrutiny.
The committee said it had concerns about Knight’s leadership, based on her role at the BBA, her previous engagements with the previous Treasury committee and her interactions with the parliamentary commission on banking standards.The committee said it had concerns about Knight’s leadership, based on her role at the BBA, her previous engagements with the previous Treasury committee and her interactions with the parliamentary commission on banking standards.
MPs also voiced fears over her independence from the Treasury and described her knowledge of tax issues as “limited”.MPs also voiced fears over her independence from the Treasury and described her knowledge of tax issues as “limited”.
They also questioned whether she was able to fulfil the role without personal conflict, given her other positions as a non-executive directors of several firms.They also questioned whether she was able to fulfil the role without personal conflict, given her other positions as a non-executive directors of several firms.
Earlier this month, Knight repeatedly told MPs on the committee she was sorry that she ended up at the lobby group at the time of banking crisis and the Libor rigging scandal.Earlier this month, Knight repeatedly told MPs on the committee she was sorry that she ended up at the lobby group at the time of banking crisis and the Libor rigging scandal.
Knight, who ran the BBA between 2007 and 2012, said: “I am so sorry I ended up at the BBA during the banking crisis. I’m so sorry it chose me to be its target. I’m so sorry it took a trade association into a different era. I’m so sorry I never persuaded the authorities to take over [setting] Libor [rates] earlier and I’m so sorry the banks brought about [the] financial disaster they did.”Knight, who ran the BBA between 2007 and 2012, said: “I am so sorry I ended up at the BBA during the banking crisis. I’m so sorry it chose me to be its target. I’m so sorry it took a trade association into a different era. I’m so sorry I never persuaded the authorities to take over [setting] Libor [rates] earlier and I’m so sorry the banks brought about [the] financial disaster they did.”
The BBA was responsible for setting the Libor rate under Knight, but was stripped of its role in 2012 after the multi-billion rate-rigging scandal was uncovered.The BBA was responsible for setting the Libor rate under Knight, but was stripped of its role in 2012 after the multi-billion rate-rigging scandal was uncovered.
Knight admitted that she wished she had been stronger in dealing with the problems that were uncovered with Libor, the regime for inter-bank interest rates, which the BBA administered at the time. Knight had wanted the Bank of England to have observer status to oversee Libor.Knight admitted that she wished she had been stronger in dealing with the problems that were uncovered with Libor, the regime for inter-bank interest rates, which the BBA administered at the time. Knight had wanted the Bank of England to have observer status to oversee Libor.
Andrew Tyrie MP, the Conservative chair of the committee, said: “The committee is content to approve Ms Knight’s appointment and wishes her every success in her new role. But the committee had concerns about Angela Knight’s suitability as chair of the OTS, stemming from her role at the BBA during the Libor-rigging scandal in 2008.Andrew Tyrie MP, the Conservative chair of the committee, said: “The committee is content to approve Ms Knight’s appointment and wishes her every success in her new role. But the committee had concerns about Angela Knight’s suitability as chair of the OTS, stemming from her role at the BBA during the Libor-rigging scandal in 2008.
“Ms Knight’s experience at the BBA represented a small, but important, part of her career. The committee’s concerns will be kept under review.”“Ms Knight’s experience at the BBA represented a small, but important, part of her career. The committee’s concerns will be kept under review.”
A Treasury spokesman said: “Angela Knight has a breadth of experience from a career spanning 43 years, including roles as an MP, businesswoman, Treasury minister and head of three industry bodies. This makes her a strong candidate for this part-time role providing recommendations on how we can make the tax system easier and simpler for taxpayers.”A Treasury spokesman said: “Angela Knight has a breadth of experience from a career spanning 43 years, including roles as an MP, businesswoman, Treasury minister and head of three industry bodies. This makes her a strong candidate for this part-time role providing recommendations on how we can make the tax system easier and simpler for taxpayers.”