Rebels seek tax exiles showdown
By Alex Stevenson
Gordon Brown’s authority faces another test as Labour backbenchers square up over an amendment barring tax exiles from being party donors.
The government was defeated in the Lords last month over an amendment barring tax exiles from donating to political parties.
When the bill returns to the Commons on Monday the government will have to force a vote on the issue if it wants to overturn the proposed change to the law. Both the Labour and Conservative frontbenches are against the proposal.
Large swathes of the Labour backbenches, as well as the Liberal Democrats, support the move, however. An amendment not selected for debate during the Commons stages of the bill attracted 216 signatures – nearly one-third of the lower House.
Martin Linton, leader of the ‘Ashcroft group’ of Labour backbenchers fighting for the amendment, told politics.co.uk: “I feel that people will seize the opportunity to support this amendment, even if necessary against the government and the Conservative frontbench, because it is so clearly wrong that people who refuse to pay tax in this country, who go abroad because of taxes, should be able to influence our election and decide what our tax rates should be.”
Ministers will meet with the chief Labour rebels in a bid to avoid another large-scale flaunting of the government’s authority. They are expected to place pressure on the rebels to accept the government’s will and prevent open disagreement in the Commons.
Whips have struggled in recent weeks, losing two votes on procedural matters after the humiliating defeat over the Gurkhas. While there is no danger of a defeat if the issue comes to a vote on Monday, a substantial rebellion by Labour backbenchers would provide yet another indication of the prime minister’s waning authority.
The Lords defeat, the largest since 1997, was the result of arguments made by Liberal Democrat peer Lord Campbell-Savours. He said the tax exiles amendment deserved to be brought to the Commons’ attention because there had been so many signatures to the ignored amendment.
Labour backbenchers angry at the current situation are struggling against the weight of both main parties’ leaderships, who both benefit from existing arrangements.
Gift aid ‘could help widen party donations’
Arguably the Conservatives gain more than most because of their relationship with multimillionaire tax exile donor – and the party’s deputy chairman – Lord Ashcroft.
His tax status remains unclear. He is a prominent figure in Belize but is registered to vote in the UK and his companies are registered here.
Lord Ashcroft refuses to say whether he is resident in the UK or if he pays taxes here.
Mr Linton remains determined to harness the frustration of Labour backbenchers with tax exiles’ current status.
He added: “What Labour MP in his or her right mind would want to give tax exiles the power to bankroll elections?
“Why should people who don’t pay tax in this country decide what the rest of us pay?”
Listen to the interview with Martin Linton in full:
