Should MPs’ tax returns be made public? As the Chancellor says he would be happy to publish his, a former Tory Cabinet minister tells us it is an unwarranted invasion of privacy.
After the issue of personal finances dominated London’s mayoral race this week, Mr Osborne indicated that a US-style system of publishing top politicians’ tax returns could be considered in the UK.
Business Secretary Vince Cable also declared that he was prepared to be open about his personal finances.
Pressure for ministers to reveal their income intensified on Thursday when Boris Johnson and Ken Livingstone, the main rivals for the capital’s top job, set out details of their own earnings and tax.
The two were embroiled in a bitter public row over tit-for-tat accusations of avoiding income tax by channelling earnings through companies.
Questioned over the debate, Mr Osborne told The Daily Telegraph: “My personal principle has been: make the rules in general more transparent.
“We are happy to consider publishing tax returns for people seeking the highest offices. Of course, they do it in America.”
Mr Osborne also made clear that he would be open about whether he personally benefits in future from the reduction in the top 50p rate of income tax which he controversially cut in last month’s budget.
I have no problem with my tax return being published while I am in government. Chancellor George Osborne
“No doubt, next time I fill in a tax return, I will be asked the question and will give you a straightforward answer,” he said – saying he had not been in the top earner category last time.
Backing openness in tax affairs, Mr Cable told the newspaper: “I’m quite happy to be open about it. I have no problem with my tax return being published while I am in government.”
However, the MP John Redwood told Channel 4 News: “Of course George Osborne had to show some sympathy for the idea because the Conservative candidate for Mayor Boris Johnson understandably challenged Ken Livingstone.”
Mr Redwood warned of the “dangers” of making such information public. He told us “The election can get sidetracked into: did someone make too big a pension contribution, did they shelter too much tax for charitable donations instead of getting on with discussing what are these people going to do for us – are they going to put general taxes up; are they going to spend the money wisely on public services.
Where do you want to stop on peoples’ personal lives when people are running for office? Surely there’s some personal space. John Redwood MP
“I think the other question is: how do you judge between people when you know how much tax they have paid? Is the man who paid more tax virtuous or is the person who gave a bigger charitable donation and sheltered tax more virtuous?”
Mr Livingstone, who is fighting to wrest back for Labour the post he lost in 2008, has come under fire for channelling earnings through a company so that they are liable for corporation not income tax.
In a foul-mouthed bust-up, Tory incumbent Mr Johnson called his City Hall predecessor a “f****** liar” over on-air allegations that he operated a similar arrangement.
Challenged to do so by Mr Livingstone, Mr Johnson and Liberal Democrat hopeful Brian Paddick issued accountant-signed statements of their earnings and tax for the past three or four years.
Although he published some figures, the ex-mayor said he would only give full details of his earnings if others agreed to disclose information concerning spouses and partners.
Mr Redwood said: “Where do you want to stop on peoples’ personal lives when people are running for office? Surely there’s some personal space. Do you want their medical records? Do you want to know what people do in their time off?”
Mr Osborne, who has faced a stinging backlash over the tax cut for top earners and other budget measures such as the so-called “granny tax” of reduce income tax allowances for pensioners, defended the package.
“We are not in a daily popularity contest. But Britain is in a daily contest around the world,” he said.
“I think this government is helping Britain to win that contest.”
His latest defence of the measures came as an opinion poll showed voter confidence in his ability to run the UK economy had slumped to an all-time low.
As many as 60 per cent do not trust him with the nation’s purse strings (up eight points on last month) while those expressing confidence is down from 25 per cent to 21 per cent.
That net score of -39, in a ComRes poll for ITV, is much worse than his previous low of -30, in July last year.
I don’t have any regrets about the substance of the Budget, I’m unrepentant about it [being] an aggressively pro-business budget. George Osborne
Mr Osborne insisted he is “unrepentant” about the budget and claimed the measures it included have been received well internationally.
He said: “I don’t have any regrets about the substance of the budget, I’m unrepentant about it [being] an aggressively pro-business budget … it cut the top rate of tax which was deeply uncompetitive, it lifted millions of low-paid people out of tax altogether, and it cut the corporation tax rate so that Britain is very, very competitive in the world.”
He also hit back at suggestions the Conservatives are out of touch.
“That is, again, a usual charge from the usual suspects,” he said.
“It’s now been four years since we were all chased around by people in top hats so it’s hardly a new charge. I don’t think it’s relevant now and I don’t think it was relevant then.”
He added: “I feel that as long as the government is on the side of those working people, then it will be a government that is in touch.”