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| Politics live blog: Tax row over top civil servants pay | |
| (40 minutes later) | |
| 12.14pm: And again with feeling ... Thomas Docherty, wants to know who signed it off. We're not getting anywhere here. | |
| Alexander took questions from 34 MPs in about 35 minutes. Phew. | |
| 12.03pm: Labour's Barry Sheerman asks why Lester was awarded a higher salary than the prime minister. Alexander said Lester was brought in to turn the Student Loans Company around and has done a good job of it. | |
| Alan Campbell, Labour MP for Tynemouth, has asked whether the urgent review will take in local government employees on high pay. Alexander says he intends to discuss with the communities secretary as to whether that is appropriate. | |
| Simon Hughes, for the Lib Dems, says the public needs to be reassured that everyone pays their share of tax. Obviously, Alexander agrees. | |
| Mark Durkan, SDLP MP, asks whether there is going to be any "restitution" for HMRC. Alexander says he will give this consideration. (Lester is said to have save tens of thousands of pounds in tax by having his £182,000 salary paid gross to his company.) | |
| 11.57am: Labour's Gareth Thomas said he had previously asked questions about this and had been given reassurances which are at odds with what has emerged today. Alexander said the answer Thomas had at the time reflected the information he had at the time. | 11.57am: Labour's Gareth Thomas said he had previously asked questions about this and had been given reassurances which are at odds with what has emerged today. Alexander said the answer Thomas had at the time reflected the information he had at the time. |
| Alexander went on to say that this government has worked hard to crack down on tax avoidance. There has been a "quadrupling" of court cases relating to tax avoidance. | Alexander went on to say that this government has worked hard to crack down on tax avoidance. There has been a "quadrupling" of court cases relating to tax avoidance. |
| 11.56am: Lorely Burt has asked whether the urgent review will also include the terms set out by the previous government. Alexander has said that the cases brought to his attention only relate to levels of public sector pay above £142,500. He will be happy to share with the house what he finds. | 11.56am: Lorely Burt has asked whether the urgent review will also include the terms set out by the previous government. Alexander has said that the cases brought to his attention only relate to levels of public sector pay above £142,500. He will be happy to share with the house what he finds. |
| Labour's shadow biz minister Shabana Mahmood asked Alexander whether he was aware about any tax benefits when approving Lester's salary. The interim arrangements were made before he was in post. He doesn't know if there are existing arrangements previously approved and repeats that he has asked for an urgent review over what other similar arrangements may be in place. His review will only look at arrangements still in existence, he says. | Labour's shadow biz minister Shabana Mahmood asked Alexander whether he was aware about any tax benefits when approving Lester's salary. The interim arrangements were made before he was in post. He doesn't know if there are existing arrangements previously approved and repeats that he has asked for an urgent review over what other similar arrangements may be in place. His review will only look at arrangements still in existence, he says. |
| 11.53am: Danny Alexander, chief secretary to the Treasury, has just told MPs in the Commons has said there is "no place" for public servants engaging in any kind of tax avoidance. He has said that from now on, all payments to the Students Loans Company will be taxed "at source". He's clearly irritated with the revelations that the head of the Student Loans Company, Ed Lester, has been paid via a company without tax being deducted. He's also demanded an urgent internal audit to review all arrangements across all departments. | 11.53am: Danny Alexander, chief secretary to the Treasury, has just told MPs in the Commons has said there is "no place" for public servants engaging in any kind of tax avoidance. He has said that from now on, all payments to the Students Loans Company will be taxed "at source". He's clearly irritated with the revelations that the head of the Student Loans Company, Ed Lester, has been paid via a company without tax being deducted. He's also demanded an urgent internal audit to review all arrangements across all departments. |
| It came up during oral questions this morning and ahead of the urgent question being put by Nick Brown, MP for Newcastle upon Tyne East. Brown followed up in response to Alexander's statement on whether the cabinet secretary had approved the arrangements. | It came up during oral questions this morning and ahead of the urgent question being put by Nick Brown, MP for Newcastle upon Tyne East. Brown followed up in response to Alexander's statement on whether the cabinet secretary had approved the arrangements. |
| The deal, entered into in 2010, was disclosed in an HMRC letter obtained under the Freedom of Information Act by Exaro News and BBC Newsnight . It was raised earlier by Labour MP Gregg McClymont during oral questions to the business secretary, demanding to know who signed off with HMRC the special dispensation regarding the extraordinary tax arrangements of Ed Lester? | The deal, entered into in 2010, was disclosed in an HMRC letter obtained under the Freedom of Information Act by Exaro News and BBC Newsnight . It was raised earlier by Labour MP Gregg McClymont during oral questions to the business secretary, demanding to know who signed off with HMRC the special dispensation regarding the extraordinary tax arrangements of Ed Lester? |
| Earlier the business secretary Vince Cable defended Lester whom he described "an exceptionally useful individual who has helped to turn round that organisation". | Earlier the business secretary Vince Cable defended Lester whom he described "an exceptionally useful individual who has helped to turn round that organisation". |
| Cable told MPs: "The arrangements under which the negotiations took place involved substantial value for money for the taxpayer, a tax cut by the individual, and we will pursue matters of public concern on the tax issues." | Cable told MPs: "The arrangements under which the negotiations took place involved substantial value for money for the taxpayer, a tax cut by the individual, and we will pursue matters of public concern on the tax issues." |
| 11.15am: Political scrapbook alerts us to an article in today's Birmingham Post, which reports that David Cameron will "personally decide the fate" of Cannock Chase MP Aidan Burley, once an inquiry into the Nazi-themed stag party that he attended reports its findings. | 11.15am: Political scrapbook alerts us to an article in today's Birmingham Post, which reports that David Cameron will "personally decide the fate" of Cannock Chase MP Aidan Burley, once an inquiry into the Nazi-themed stag party that he attended reports its findings. |
| Burley was sacked as ministerial aide to the transport secretary, Justine Greening, after it emerged he was the one who had hired the replica SS uniform worn by the groom to be, and Cameron ordered an inquiry. Scrapbook comments: "Despite the prime minister's remarks around Holocaust Memorial Day, one could be forgiven cynicism given that Cameron has already written to Burley asking his anti-union TURC campaign to prepare a "report" on activities by union representatives." | Burley was sacked as ministerial aide to the transport secretary, Justine Greening, after it emerged he was the one who had hired the replica SS uniform worn by the groom to be, and Cameron ordered an inquiry. Scrapbook comments: "Despite the prime minister's remarks around Holocaust Memorial Day, one could be forgiven cynicism given that Cameron has already written to Burley asking his anti-union TURC campaign to prepare a "report" on activities by union representatives." |
| I called Conservative central office who said the party will not comment until the investigation has concluded and Cameron has been presented with the findings. But the spokesman did point out that the letter from Cameron to Burley welcoming the fact that he had set up the Trade Union Reform Campaign was sent on 23 November, ie more than two weeks prior to the Mail on Sunday revealing on 11 December that the nazi-style party had taken place. | I called Conservative central office who said the party will not comment until the investigation has concluded and Cameron has been presented with the findings. But the spokesman did point out that the letter from Cameron to Burley welcoming the fact that he had set up the Trade Union Reform Campaign was sent on 23 November, ie more than two weeks prior to the Mail on Sunday revealing on 11 December that the nazi-style party had taken place. |
| 10.54am: Labour has been granted an urgent question in the Commons later this morning after it was revealed that the head of the Student Loans Company (SLC) is being paid via a company without tax being deducted. | 10.54am: Labour has been granted an urgent question in the Commons later this morning after it was revealed that the head of the Student Loans Company (SLC) is being paid via a company without tax being deducted. |
| The SLC's chief executive, Ed Lester, has his £182,000 salary paid gross to his private service company, potentially saving him tens of thousands of pounds in tax. The question's coming up at 11.30am. | The SLC's chief executive, Ed Lester, has his £182,000 salary paid gross to his private service company, potentially saving him tens of thousands of pounds in tax. The question's coming up at 11.30am. |
| 10.40am Apologies for the delay. We're having a fair few technical hitches this morning. Douglas Alexander, the shadow foreign secretary, was the first off the block to go on air to discuss David Miliband's thoughts on the need for Labour to avoid the trap of being "Reassurance Labour" and instead rethink its ideas to meet the challenges of the times. | 10.40am Apologies for the delay. We're having a fair few technical hitches this morning. Douglas Alexander, the shadow foreign secretary, was the first off the block to go on air to discuss David Miliband's thoughts on the need for Labour to avoid the trap of being "Reassurance Labour" and instead rethink its ideas to meet the challenges of the times. |
| He told the Radio 4 Today programme that the failed leadership candidate "recognises the challenge we all face across political parties at the moment". Quotes courtesy of politicshome. | He told the Radio 4 Today programme that the failed leadership candidate "recognises the challenge we all face across political parties at the moment". Quotes courtesy of politicshome. |
| I think you've got to understand where politics is today, I think in a broader historical context, the global financial crisis of 2008 bears comparison with the Wall Street Crash of 1931, the collapse of the post-war consensus in 1979. | I think you've got to understand where politics is today, I think in a broader historical context, the global financial crisis of 2008 bears comparison with the Wall Street Crash of 1931, the collapse of the post-war consensus in 1979. |
| So, in the years ahead my strong sense is those ideas that are emerging will reflect the consequences of that crisis. Now, what did that crisis reveal? First of all it accelerated a generational shift in wealth and power from Europe and North America towards Asia, that's why this week we've had a political conversation in the Commons dominated in some ways by the reach of Brussels, but the generational question is going to be the rise of Beijing. | So, in the years ahead my strong sense is those ideas that are emerging will reflect the consequences of that crisis. Now, what did that crisis reveal? First of all it accelerated a generational shift in wealth and power from Europe and North America towards Asia, that's why this week we've had a political conversation in the Commons dominated in some ways by the reach of Brussels, but the generational question is going to be the rise of Beijing. |
| Alexander outlined what he sees as the fundamental issues facing parties in the post-crash era. | Alexander outlined what he sees as the fundamental issues facing parties in the post-crash era. |
| There's going to be two other fundamental questions, I think, that the Labour party is confronting, but, in fact, will confront all parties. First of all, a production question, how do we earn our living and pay our way in the world after the financial crisis? And, secondly, if you like, a distributional question. How do we build a good society when there's not much money around? | There's going to be two other fundamental questions, I think, that the Labour party is confronting, but, in fact, will confront all parties. First of all, a production question, how do we earn our living and pay our way in the world after the financial crisis? And, secondly, if you like, a distributional question. How do we build a good society when there's not much money around? |
| Mark Ferguson on Labourlist says that David Miliband's contribution is "thoughtful and weighty contribution" and his comments about moving beyond the state resonates with "aspects of Blue Labour thought" and with the internal party debate about whether some within Labour are "too comfortable with opposition". | Mark Ferguson on Labourlist says that David Miliband's contribution is "thoughtful and weighty contribution" and his comments about moving beyond the state resonates with "aspects of Blue Labour thought" and with the internal party debate about whether some within Labour are "too comfortable with opposition". |
| He takes issue with the Daily Telegraph's frontpage coverage and its claims that the essay is "an attack on his brother Ed's labour party" despite several positive references in the essay to the contrary. | He takes issue with the Daily Telegraph's frontpage coverage and its claims that the essay is "an attack on his brother Ed's labour party" despite several positive references in the essay to the contrary. |
| He writes that "... even the most ardent supporter of Ed Miliband would struggle to argue that Ed Miliband has been 'reassuring' Labour supporters recently. | He writes that "... even the most ardent supporter of Ed Miliband would struggle to argue that Ed Miliband has been 'reassuring' Labour supporters recently. |
| "What is pleasing, and should not be overlooked, is that David Miliband is starting to feel comfortable enough to make a cautious return to domestic political debate. That's something that I'm genuinely delighted about. David wasn't my first choice for leader, but months ago I was calling for him to return to frontline politics. Most activists I speak to – regardless of their personal politics – want Labour to have a team of all the talents. That includes David Miliband." | "What is pleasing, and should not be overlooked, is that David Miliband is starting to feel comfortable enough to make a cautious return to domestic political debate. That's something that I'm genuinely delighted about. David wasn't my first choice for leader, but months ago I was calling for him to return to frontline politics. Most activists I speak to – regardless of their personal politics – want Labour to have a team of all the talents. That includes David Miliband." |
| But while Ferguson plays down the idea that Miliband senior is having a pop at Miliband junior, Dan Hodges, contributing editor to Labour Uncut , writes in the Telegraph, suggests otherwise. He says that the timing of Miliband's intervention is "supremely significant". | But while Ferguson plays down the idea that Miliband senior is having a pop at Miliband junior, Dan Hodges, contributing editor to Labour Uncut , writes in the Telegraph, suggests otherwise. He says that the timing of Miliband's intervention is "supremely significant". |
| This is challenging stuff, and it's crystal clear who is being challenged. Nominally the article is in response to a hitherto unnoticed piece penned by Roy Hattersley in the obscure Political Quarterly. But the real target of David Miliband's attack on "Reassurance Labour" is Ed Miliband. And both brothers know it. | This is challenging stuff, and it's crystal clear who is being challenged. Nominally the article is in response to a hitherto unnoticed piece penned by Roy Hattersley in the obscure Political Quarterly. But the real target of David Miliband's attack on "Reassurance Labour" is Ed Miliband. And both brothers know it. |
| 10.05am: The foreign secretary William Hague has called for a stepping up of the fight against Somali-based terrorism as he became the first British foreign secretary to visit the war-torn state for 20 years. | 10.05am: The foreign secretary William Hague has called for a stepping up of the fight against Somali-based terrorism as he became the first British foreign secretary to visit the war-torn state for 20 years. |
| He arrived in the capital, Mogadishu, amid tight security, marking the start of a major diplomatic push to help stabilise a country he described as "the world's most failed state", according to the Press Association. | He arrived in the capital, Mogadishu, amid tight security, marking the start of a major diplomatic push to help stabilise a country he described as "the world's most failed state", according to the Press Association. |
| Hague said recent gains by the 10,000-strong African Union force in the country (Amisom) had driven back the radical Islamist group al Shabaab from the capital. | Hague said recent gains by the 10,000-strong African Union force in the country (Amisom) had driven back the radical Islamist group al Shabaab from the capital. |
| But with much of the south of the country still controlled by the organisation, which has links to al-Qaida, he said there must be no let-up in the pressure. 'We need to step this up. We are not complacent about it,' he said. | But with much of the south of the country still controlled by the organisation, which has links to al-Qaida, he said there must be no let-up in the pressure. 'We need to step this up. We are not complacent about it,' he said. |
| 9.50am: Good morning, I'm Hélène Mulholland, standing in for Andrew Sparrow today. | 9.50am: Good morning, I'm Hélène Mulholland, standing in for Andrew Sparrow today. |
| An essay in this week's New Statesman by the Labour party leader's big brother on the need for Labour to engage in "restless rethinking" of its purpose and its policies if it is to return to power, promises a lively debate both within the party and without. The former foreign secretary and defeated leadership candidate lays out a seven-point plan for the party. You can read the full article here and see whether you agree with his assessment. | An essay in this week's New Statesman by the Labour party leader's big brother on the need for Labour to engage in "restless rethinking" of its purpose and its policies if it is to return to power, promises a lively debate both within the party and without. The former foreign secretary and defeated leadership candidate lays out a seven-point plan for the party. You can read the full article here and see whether you agree with his assessment. |
| Diarywise, today looks set to be a quiet one. | Diarywise, today looks set to be a quiet one. |
| Damian Green, the immigration minister, will outline reforms to immigration policy at a Policy Exchange thinktank at 10am. The gist seems to be that only those with rosy bank accounts will be able to marry whom they want from abroad or settle in Britain. My colleague Alan Travis has trailed the contents of the speech here. | Damian Green, the immigration minister, will outline reforms to immigration policy at a Policy Exchange thinktank at 10am. The gist seems to be that only those with rosy bank accounts will be able to marry whom they want from abroad or settle in Britain. My colleague Alan Travis has trailed the contents of the speech here. |
| Tourists wandering around Westminster this morning will probably wonder what's going on if they head towards the gates of 10 Downing Street. The web-based lobbying group Avaaz, intend to make a noise about tax using props (a giant "David Cameron" and a "tax burglar", apparently) and a petition which is expected to have more than 100,000 signatures calling for tax transparency across the board and an end to tax breaks for big business. Perhaps one of the activists will contact us and tell us how it went. | Tourists wandering around Westminster this morning will probably wonder what's going on if they head towards the gates of 10 Downing Street. The web-based lobbying group Avaaz, intend to make a noise about tax using props (a giant "David Cameron" and a "tax burglar", apparently) and a petition which is expected to have more than 100,000 signatures calling for tax transparency across the board and an end to tax breaks for big business. Perhaps one of the activists will contact us and tell us how it went. |
| Down the road in parliament, the Joint Committee on Privacy and Injunctions will take evidence from News Group Newspapers and the Press Complaints Commission. Witnesses giving evidence include Dominic Mohan, editor of the Sun and Lord Hunt of Wirral, Chair, Press Complaints Commission. The committee's remit is here and the session starts at 10.15. My colleague Josh Halliday on media will be covering it in a separate liveblog, which will also take in the Leveson inquiry. | Down the road in parliament, the Joint Committee on Privacy and Injunctions will take evidence from News Group Newspapers and the Press Complaints Commission. Witnesses giving evidence include Dominic Mohan, editor of the Sun and Lord Hunt of Wirral, Chair, Press Complaints Commission. The committee's remit is here and the session starts at 10.15. My colleague Josh Halliday on media will be covering it in a separate liveblog, which will also take in the Leveson inquiry. |
| Meanwhile, in the Commons this morning, the business secretary Vince Cable will take questions. | Meanwhile, in the Commons this morning, the business secretary Vince Cable will take questions. |