Earlier this year, Danny Alexander told the FT he was going to use the levers of government to get companies to pay their fair share of tax. Specifically, he was going to stop companies from winning big Whitehall contracts if they haven’t complied with tax rules. He told us at the time:
If you work for the government, whether you’re an individual employee or a company that has got a contract with the government, you need to be behaving properly with regard to tax rules.
His comments came after an FT investigation showed some of the world’s biggest IT companies that provide services to the government, use ingenious and somewhat aggressive tactics to avoid paying UK corporation tax. Read more
Talking to a senior Liberal Democrat the other day, talk turned to which of their MPs are at risk at the next election. This person reckoned the party could feasibly hold on to between 43 and 50 seats, which would be a major triumph given the meltdown many have been predicting for the last few months.
One seat this person insisted was safe was that of Danny Alexander. Why, I asked – because Inverness voters like having a political heavyweight (before you criticise, he is a member of the quad) as their MP? To a certain extent, they replied. Because the voters there are died-in-the-wool Lib Dems? Not especially, they said. Why then? Because Inverness has done very well out of Danny Alexander.
On several occasions since Alexander became Treasury chief secretary, there have been small but significant giveaways that help, among other places, Inverness in particular. Read more
Here’s another example of the OBR shrugging its shoulders at coalition policy.
The Office of Budget Responsibility reviews the Lib Dem-backed crackdown on tax avoidance and concludes that it will have no impact on compliance rates. Read more
It was worth listening to Today this morning if only to hear Lord Ashdown under siege over the issue of Sir Philip Green and his tax status. The Lib Dem peer was asked about how the government could seriously talk about battling tax avoidance given the recent hiring of the retail tycoon as an efficiency czar: As the interviewer asked:
“If this government was really serious about tax avoidance it would not have employed, would it, Sir Philip Green, who is also accused of avoiding taxes, perfectly legally…but there he is, advising the government on waste. If the Lib Dems really had power in this government he wouldn’t be there would he?”
Ashdown said he would not criticise the appointment. He then rattled off a list of the many changes achieved by the coalition (pupil premium, tax breaks for low-income families, etc). It was as if he didn’t want to discuss the tycoon at all.
But the Lib Dems do seem to be facing both ways on the issue of tax at the moment. Yesterday Danny Alexander announced a new £900m to spend on tackling the issue. But how does this square with hiring Sir Philip? Read more
Of all the new cabinet ministers surely one of the most obscure – until recently – is Danny Alexander, who was chief of staff for Nick Clegg. Alexander has played a key role in producing the Lib Dem manifesto and in the coalition talks of recent days, working closely with the Tories’ Oliver Letwin to produce yesterday’s coalition agreement. Read more