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Boris Johnson in foul-mouthed rant at Ken Livingstone over tax claims Boris Johnson in foul-mouthed rant at Ken Livingstone over tax claims
(about 4 hours later)
Boris Johnson has accused Ken Livingstone of being "a fucking liar" in a furious confrontation in a lift following a live radio debate.Boris Johnson has accused Ken Livingstone of being "a fucking liar" in a furious confrontation in a lift following a live radio debate.
Tensions boiled over after a London mayoral hustings on LBC 97.3 in which Johnson, the current mayor, and Livingstone, Labour's candidate, clashed over their respective tax arrangements. Tensions boiled over after a London mayoral hustings on LBC 97.3 in which Johnson, the incumbent, and Livingstone, Labour's candidate, clashed over their respective tax arrangements.
The four candidates – including the Lib Dems' Brian Paddick, and Jenny Jones for the Greens – had begun the day in good spirits, arriving at the studio for a one-hour hustings. Johnson made to hand his coat to Livingstone, as if mistaking him for a member of staff, to the amusement of some. With just over four weeks to go until polling day, the animosity between the two lead rivals in the race to become the next mayor of London exploded into the open as they came face to face for their third joint hustings of the campaign. An on-air row was followed by a confrontation by Johnson in a small lift with three witnesses present.
But once the debate began the mood became increasingly fractious, culminating in a heated discussion after Livingstone told listeners that the Conservative incumbent used exactly the same tax arrangements as he did for the payment of media earnings. The day had begun in relatively good spirits as Johnson, Livingstone, the Lib Dems' Brian Paddick and Green party candidate Jenny Jones arrived at the studio in Leicester Square.
Livingstone has been accused of hypocrisy for denouncing those who avoid tax while having set up a company, Silveta Ltd, to channel his earnings and which allowed him to be liable for corporation tax at 20%. Livingstone seemed unfazed as Johnson, who has widened his lead over his Labour rival to eight points in the most recent YouGov polling, made to hand him his coat on their way in to the studio. Each of the four candidates then threw a dart in their respective party political colours at a dartboard to decide who would go first in their brief address to listeners before questions began. Johnson hit bullseye, and went first, with Livingstone third.
An incensed Johnson unleashed his ire after the debate in the confines of the lift. In front of Paddick, Jones, and LBC's managing editor James Rea, a reportedly red faced Johnson went "nose to nose" with Livingstone and told him three times over: "You are a fucking liar". The candidates then emerged from the lift to talk to the media on LBC's roof terrace But the atmosphere became increasingly tense as listeners called in with questions, culminating in an argument when the matter of Livingstone's tax arrangements was raised by a caller.
The private exchange followed strong words from Johnson during the live radio hustings. Pressed by a listener on why Livingstone thought hard-pressed Londoners would want a candidate who avoided his taxes, the Labour candidate accused the mayor of having "the same arrangements" for dealing with his media earnings as he had, insisting he had used a company called Finland Station. Livingstone has been accused of hypocrisy for denouncing those who avoid tax while having set up a private company, Silveta, to channel his earnings, so he was liable to pay corporation tax at 20% rather than income tax at a higher rate.
An incensed Johnson called the claim "lies": "I have never used a company to minimise my tax," he said. "There was a TV production company which I was briefly a director of but I certainly never ... I have always paid full income tax." To Johnson's fury, Livingstone said his Conservative rival used exactly the same tax arrangements as he did for the payment of media earnings.
Livingstone said in a statement after the fracas that Johnson had lost his temper "because he lost the debate — he talked about cable cars not cutting fares and the squeeze on Londoners". "The fact is, Boris and I are in exactly the same situation," Livingstone told listeners. "We both had media earnings. We both put them through a company. You have to pay tax on the money you take out."
Johnson's aides released a letter dated 12 March from the mayor's personal accountant, Robert Maples, stating that Johnson is "liable to income tax on the entirety of his earnings and has made all due payments. He is not party to any tax avoidance or deferral schemes, nor has any of his income been transferred to any other members of his family." Johnson repeatedly insisted Livingstone's claim was a lie, to no avail. Minutes later, in the confines of a lift for a short journey from the second floor to a roof terrace on the sixth floor at LBC's offices, an incensed Johnson unleashed his ire in front of fellow passengers Paddick, Jones and LBC managing editor James Rea.
Johnson also issued a statement to rebut the claims made by Livingstone. "In relation to my business affairs and tax arrangements, specifically do I have any company or other arrangements constructed to enable me to pay less tax and do I, as has been claimed by the Labour mayoral candidate and the opposition eader, have the same arrangements as Labour's mayoral candidate. The answer is simple and unequivocal in both cases. No. A reportedly red-faced Johnson went "nose to nose" with Livingstone and told him three times over: "You are a fucking liar." A spokesman for the Labour candidate insisted he said nothing in reply because he was shocked. The candidates emerged from the lift to be photographed.
"My salary as mayor is taxed as an employee of the GLA. In the same way as when I was an MP my salary was taxed as an employee. Any other income that I have received from outside endeavours has been received on a self-employed basis, to me as an individual (no company or other structure has been involved). No income earned by me has ever been paid to a "service" company, through which a person or person's freelance earnings can be channelled so that they pay corporation rather than income tax. To suggest otherwise is a complete and utter fabrication." Siobhan Benita, the only independent candidate in the mayoral race, said she had witnessed the row while on her way to the radio studio to comment on the debate. She said the outburst showed the need for an independent mayor "who rises above petty party politics and personal boxing matches".
The private exchange, reported by witnesses, followed an interchange which began when a listener asked Livingstone why hard-pressed Londoners would want a candidate who avoided his taxes.
Livingstone accused those who accused him of tax avoidance of smears. "I pay my income tax on everything I get. The simple fact is that I've employed three people over the last four years. You can't do that on some casual arrangement; you have a proper situation and you pay that money out."
Paddick interjected to say Livingstone had chosen a way of avoiding paying high levels of tax, while Johnson's earnings meant he would personally benefit from the scrapping of the 50p top rate of tax.
Johnson said he was not prepared to comment on his tax affairs, but was "proud" to pay his income tax. He said it was "pretty disgraceful" to be attacked by Livingstone – saying he was "someone who had deliberately set up a tax-dodging manoeuvre" and then denounced everyone who had done so.
It was then that Livingstone mentioned Finland Station, a company he said Johnson set up while an MP, which "handled your television work".
Johnson said: "I have never used a company to minimise my tax. There was a TV production company which I was briefly a director of, yes but I certainly never ... I have always paid full income tax."
Livingstone nevertheless reiterated that he and Johnson were in "exactly the same position". Repeatedly, Johnson said: "That's not true."
Speaking after the radio hustings, Jones said the "personality and accusations" during the public debate had meant the issues and policies that matter to Londoners got lost. "There was a lot of testosterone in the room; getting my voice in wasn't always easy," she said.
An aide to Johnson later released a letter dated 12 March from the mayor's personal accountant, Robert Maples, stating that Johnson is "liable to income tax on the entirety of his earnings and has made all due payments. He is not party to any tax avoidance or deferral schemes, nor has any of his income been transferred to any other members of his family".
Johnson also issued a statement to rebut the claims made by Livingstone. "In relation to my business affairs and tax arrangements, specifically do I have any company or other arrangements constructed to enable me to pay less tax and do I, as has been claimed by the Labour mayoral candidate and the opposition leader, have the same arrangements as Labour's mayoral candidate. The answer is simple and unequivocal in both cases: no.
"My salary as mayor is taxed as an employee of the Greater London Authority. In the same way as when I was an MP, my salary was taxed as an employee. Any other income that I have received from outside endeavours has been received on a self-employed basis, to me as an individual (no company or other structure has been involved). No income earned by me has ever been paid to a 'service' company, through which a person or person's freelance earnings can be channelled so that they pay corporation rather than income tax. To suggest otherwise is a complete and utter fabrication."
A spokesman for Livingstone said the candidate stood by his claims and maintained Johnson still had "questions to answer" over tax arrangements to do with Finland Station.
The issue may resurface on Wednesday, when the two rivals face up for a debate on BBC2's Newsnight.
Going up for trouble ...
• In 2008 an aide was overheard in a lift telling David Miliband that his speech at the Labour party conference only deserved a "six out of 10". Miliband reportedly said he had toned it down as he did not want to be perceived as challenging the then PM Gordon Brown: "I couldn't have gone any further. It would have been a Heseltine moment."
• Stella Creasy had been a Labour MP for a year when she was asked by Tory MP Andrew Robathan whether she could read, since the lift was for people with wheelchairs and MPs. Robathan subsequently apologised to Creasy.
• Journalist Matthew Parris was a fresh-faced young Conservative MP in 1979 when he was delighted to find himself sharing a lift and a conversation with minister Sir Keith Joseph. When Joseph got out of the lift he told Parris: "Thank you very much. I hope to use your lift again."