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| No 'secret' Ashcroft deal - Hague | No 'secret' Ashcroft deal - Hague |
| (9 minutes later) | |
| Former Conservative leader William Hague has denied any "secret" deal was done over Lord Ashcroft's tax status. | Former Conservative leader William Hague has denied any "secret" deal was done over Lord Ashcroft's tax status. |
| The Tory donor was made a peer in 2000 after undertaking to become a permanent UK resident, which was widely believed to mean he would be a full UK taxpayer. | The Tory donor was made a peer in 2000 after undertaking to become a permanent UK resident, which was widely believed to mean he would be a full UK taxpayer. |
| Mr Hague told the BBC leaked papers showed No 10 knew the agreed deal had not included the peer's tax status. | Mr Hague told the BBC leaked papers showed No 10 knew the agreed deal had not included the peer's tax status. |
| But a member of the panel which approved the peerage said she felt Lord Ashcroft had not met his undertakings. | But a member of the panel which approved the peerage said she felt Lord Ashcroft had not met his undertakings. |
| Giving evidence to a Commons committee which is looking into the issue, Labour peer Baroness Dean said the Political Honours Scrutiny Committee believed it had been assured Lord Ashcroft would become a permanent resident before he took up his seat in the Lords. | Giving evidence to a Commons committee which is looking into the issue, Labour peer Baroness Dean said the Political Honours Scrutiny Committee believed it had been assured Lord Ashcroft would become a permanent resident before he took up his seat in the Lords. |
| "It looks like that the commitments and undertakings given were not carried through," she said. | "It looks like that the commitments and undertakings given were not carried through," she said. |
| She added that she was "surprised" by Lord Ashcroft's recent admission of his actual tax position. | She added that she was "surprised" by Lord Ashcroft's recent admission of his actual tax position. |
| Long-running row | Long-running row |
| There has been a long-running row over Lord Ashcroft's tax status, focusing in recent weeks on when the Conservative leadership knew he was not domiciled in the UK for tax purposes after he acknowledged being a "non dom" last month. | There has been a long-running row over Lord Ashcroft's tax status, focusing in recent weeks on when the Conservative leadership knew he was not domiciled in the UK for tax purposes after he acknowledged being a "non dom" last month. |
| LORD ASHCROFT A businessman once described as the "boss" of Caribbean tax haven Belize, Michael Ashcroft has pumped millions into the Tory Party since 1998. Has become deputy party chairman and runs crucial unit targeting marginal seats.It had been thought he pledged to become full UK taxpayer as a condition of becoming a Lord in 2000, but he and Tory politicians have always refused to clarify whether he had done so.Last month Lord Ashcroft finally cleared the issue by admitting he did not pay tax in the UK on most of his non-UK earnings, but said the undertaking agreed at the time of becoming a Lord was to be a "long term resident", and he hadcomplied with that.Leaked cabinet office papers appear to confirm that the deal done over his peerage did not include his tax status. Q&A: Lord Ashcroft Read Nick Robinson's blog | LORD ASHCROFT A businessman once described as the "boss" of Caribbean tax haven Belize, Michael Ashcroft has pumped millions into the Tory Party since 1998. Has become deputy party chairman and runs crucial unit targeting marginal seats.It had been thought he pledged to become full UK taxpayer as a condition of becoming a Lord in 2000, but he and Tory politicians have always refused to clarify whether he had done so.Last month Lord Ashcroft finally cleared the issue by admitting he did not pay tax in the UK on most of his non-UK earnings, but said the undertaking agreed at the time of becoming a Lord was to be a "long term resident", and he hadcomplied with that.Leaked cabinet office papers appear to confirm that the deal done over his peerage did not include his tax status. Q&A: Lord Ashcroft Read Nick Robinson's blog |
| While defending his actions over the issue, Mr Hague admitted it had been a "mistake" to say the agreement "would cost Lord Ashcroft millions" in extra tax. | While defending his actions over the issue, Mr Hague admitted it had been a "mistake" to say the agreement "would cost Lord Ashcroft millions" in extra tax. |
| "The one thing I will concede on this - and which I think in retrospect was a mistake - was to say tens of millions because it may have cost him millions. We don't know, it may cost him millions into the future," he told BBC Radio 4's Today programme. | "The one thing I will concede on this - and which I think in retrospect was a mistake - was to say tens of millions because it may have cost him millions. We don't know, it may cost him millions into the future," he told BBC Radio 4's Today programme. |
| "None of us can know - other than him, I suppose, and the tax authorities - what it has cost. | "None of us can know - other than him, I suppose, and the tax authorities - what it has cost. |
| "But it was certainly an important change for him to go from being not resident in the UK." | "But it was certainly an important change for him to go from being not resident in the UK." |
| Mr Hague, who nominated Lord Ashcroft for a peerage when he was Tory leader, said the documents "vindicated" his argument that Lord Ashcroft had abided by the undertakings he had given at the time. | Mr Hague, who nominated Lord Ashcroft for a peerage when he was Tory leader, said the documents "vindicated" his argument that Lord Ashcroft had abided by the undertakings he had given at the time. |
| "The idea that this was a secret Tory deal for Lord Ashcroft to avoid whatever people thought he should have paid is rather blown apart by the knowledge this was all copied to Downing Street," he told BBC Radio 4's Today. | "The idea that this was a secret Tory deal for Lord Ashcroft to avoid whatever people thought he should have paid is rather blown apart by the knowledge this was all copied to Downing Street," he told BBC Radio 4's Today. |
| Critics say the Conservatives failed to answer repeated questions about Lord Ashcroft's tax status over the past decade but Mr Hague defended the answers he gave when asked over the years about the issue. | Critics say the Conservatives failed to answer repeated questions about Lord Ashcroft's tax status over the past decade but Mr Hague defended the answers he gave when asked over the years about the issue. |
| "I said he was meeting the obligations placed on him. As you can see from these documents, everybody agreed that he was doing that, that it met the terms of the original undertakings." | "I said he was meeting the obligations placed on him. As you can see from these documents, everybody agreed that he was doing that, that it met the terms of the original undertakings." |
| FROM THE TODAY PROGRAMME More from Today programme | FROM THE TODAY PROGRAMME More from Today programme |
| Mr Hague said Lord Ashcroft had only told him he was a non-dom "around the turn of the year" and that he subsequently went on to "explain" his position to David Cameron and announce it publicly. | Mr Hague said Lord Ashcroft had only told him he was a non-dom "around the turn of the year" and that he subsequently went on to "explain" his position to David Cameron and announce it publicly. |
| "You could argue that that should all have been done earlier. OK, you can argue that. But we have done all of that." | "You could argue that that should all have been done earlier. OK, you can argue that. But we have done all of that." |
| The BBC's Political Editor Nick Robinson said despite Mr Hague's attempts to dismiss the matter as a "fuss", the reality was, in public, the Tories had appeared secretive and evasive over the issue for 10 years. | The BBC's Political Editor Nick Robinson said despite Mr Hague's attempts to dismiss the matter as a "fuss", the reality was, in public, the Tories had appeared secretive and evasive over the issue for 10 years. |
| 'Backbone' | 'Backbone' |
| Mr Hague's comments came ahead of a Commons hearing by the Public Administration Committee into the arrangements and undertakings surrounding Lord Ashcroft's peerage. | Mr Hague's comments came ahead of a Commons hearing by the Public Administration Committee into the arrangements and undertakings surrounding Lord Ashcroft's peerage. |
| The Conservative members of the committee boycotted the hearing and the party has protested to the chairman of the committee, Labour MP Tony Wright, over what they say is a "partisan" inquiry. | |
| Mr Wright said Lord Ashcroft and Mr Hague had been invited to attend but the committee had been told by Tory officials that they were "not inclined to do so". | Mr Wright said Lord Ashcroft and Mr Hague had been invited to attend but the committee had been told by Tory officials that they were "not inclined to do so". |
| Sir Hayden Phillips, the senior civil servant who oversaw negotiations between the Conservatives and the scrutiny panel over the peerage process, said he did not believe he had been "deceived". | Sir Hayden Phillips, the senior civil servant who oversaw negotiations between the Conservatives and the scrutiny panel over the peerage process, said he did not believe he had been "deceived". |
| He told MPs his role was merely to "satisfy" himself that Lord Ashcroft would spend enough time in the UK to qualify for his peerage and that the Conservatives and the authorities agreed on the nature of the undertakings that he was giving, which he believed they had. | He told MPs his role was merely to "satisfy" himself that Lord Ashcroft would spend enough time in the UK to qualify for his peerage and that the Conservatives and the authorities agreed on the nature of the undertakings that he was giving, which he believed they had. |
| 'Contempt' | 'Contempt' |
| Sir Hayden stressed he was not a tax expert and did not, at the time, appreciate the distinctions between domicile and non-domicile status. | Sir Hayden stressed he was not a tax expert and did not, at the time, appreciate the distinctions between domicile and non-domicile status. |
| But he said it was clear with hindsight that the panel's "reservations" that the undertaking meant a specific tax obligation on Lord Ashcroft should have been made more "explicit" at the time. | But he said it was clear with hindsight that the panel's "reservations" that the undertaking meant a specific tax obligation on Lord Ashcroft should have been made more "explicit" at the time. |
| If that had been the case, he added, "there is a chance this might have well been the outcome". | If that had been the case, he added, "there is a chance this might have well been the outcome". |
| Speaking in the Commons, Labour deputy leader Harriet Harman said Mr Hague had shown "flagrant contempt" to Parliament by not appearing before the committee. | Speaking in the Commons, Labour deputy leader Harriet Harman said Mr Hague had shown "flagrant contempt" to Parliament by not appearing before the committee. |
| He [William Hague] is not prepared to acknowledge that he knew Lord Ashcroft was a non-dom but kept quiet because he wanted to carry on taking the money Harriet Harman | He [William Hague] is not prepared to acknowledge that he knew Lord Ashcroft was a non-dom but kept quiet because he wanted to carry on taking the money Harriet Harman |
| "It can only be explained in one way, that the shadow foreign secretary is afraid to answer the questions about when he knew Lord Ashcroft was not paying tens of millions of pounds in tax despite the fact he was paying millions of pounds to the Conservative Party," she said. | "It can only be explained in one way, that the shadow foreign secretary is afraid to answer the questions about when he knew Lord Ashcroft was not paying tens of millions of pounds in tax despite the fact he was paying millions of pounds to the Conservative Party," she said. |
| "He is not prepared to appear before a select committee because he is not prepared to acknowledge that he knew Lord Ashcroft was a non-dom but kept quiet because he wanted to carry on taking the money." | "He is not prepared to appear before a select committee because he is not prepared to acknowledge that he knew Lord Ashcroft was a non-dom but kept quiet because he wanted to carry on taking the money." |
| She was rebuked by Speaker John Bercow after repeatedly raising the issue during Commons business questions. Mr Bercow said it had been "done to death" and she should stick to discussing the future business of the House. | She was rebuked by Speaker John Bercow after repeatedly raising the issue during Commons business questions. Mr Bercow said it had been "done to death" and she should stick to discussing the future business of the House. |
| The Lib Dems, who claim that Lord Ashcroft owes more than £100m in unpaid tax, said the Tories had treated the public "with total contempt" over the issue. | The Lib Dems, who claim that Lord Ashcroft owes more than £100m in unpaid tax, said the Tories had treated the public "with total contempt" over the issue. |
| "William Hague promised the prime minister that before Lord Ashcroft received his peerage he would pay "tens of millions" in British tax, but then never even checked whether the promise was kept," the party's home affairs spokesman Chris Huhne said. | "William Hague promised the prime minister that before Lord Ashcroft received his peerage he would pay "tens of millions" in British tax, but then never even checked whether the promise was kept," the party's home affairs spokesman Chris Huhne said. |
| "It is utterly unbelievable to say, as William Hague did this morning, that he was not aware of the tax implications of these negotiations that dragged on for four months when he was kept informed by his closest loyalist, the chief whip." | |
| Lord Ashcroft has pumped millions of pounds of his own money into the Conservative Party over the years and in 2005 was made its deputy chairman, with responsibility for targeting marginal seats at the general election. | Lord Ashcroft has pumped millions of pounds of his own money into the Conservative Party over the years and in 2005 was made its deputy chairman, with responsibility for targeting marginal seats at the general election. |