Tag Archives: Financial Secretary

Chancellor of the Exchequer says tax is ‘not my job’

Doesn't he look shifty?

Doesn’t he look shifty?

Slippery as an eel, the submarine Chancellor has surfaced from whatever hiding-place he has been using for the last week or so, insisted that the pursuit of people who evaded tax on advice from the HSBC Bank is nothing to do with him, and re-submerged before anybody could point out that this isn’t entirely true.

As Chancellor of the Exchequer, George Osborne doesn’t have a hand in individual prosecutions – but he does set the conditions under which such investigations are undertaken.

Alex Little is therefore correct in pointing out that Osborne is notably not saying that HMRC will have all the resources it needs to carry out a full and exhaustive investigation into the HSBC scandal, and that he needs to appoint financial regulators who actually want to stamp out abuses, rather than those who live in sublime ignorance (such as the gentleman mentioned in Mr Little’s article).

None of the government’s actions have satisfied Labour. Chris Leslie, shadow chief secretary to the Treasury, said: “George Osborne has finally emerged, but he still hasn’t answered any of the key questions over the HSBC scandal. He cannot continue to duck responsibility for HMRC’s failure to act or the decision to make Lord Green a Conservative Minister.

“Why has there only been one prosecution out of 1,100 names? Why did George Osborne and David Cameron appoint Lord Green as a Minister months after the government received these files? Did they discuss tax evasion at HSBC with Lord Green, or did they turn a blind eye?

“And why did the Treasury sign a deal with the Swiss authorities in 2012 which prevents the UK from actively obtaining similar information in the future?”

According to The Guardian, a YouGov survey for the Times Red Box found 62% of people want the chancellor to answer these questions.

The longer he leaves it, the less electable his Conservative Party becomes…

… and the more like a gang of crooks covering their friends’ backs.

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Sajid Javid, the man who trivialised the WWI centenary, shames himself on the economy

Sajid Javid? No - this is The Collector, from the Doctor Who serial The Sun Makers, but it's an easy mistake to make. This charmer's game was extorting taxes from human refugees who had fled the death of the sun to live under artificial heat sources on Pluto(!) - but revolution triggers a recession in which he literally shrinks down to nothing, disappearing into the commode he appears to be sitting on. If only Mr Javid would do the same!

Sajid Javid? No – this is The Collector, from the Doctor Who serial The Sun Makers, but it’s an easy mistake to make. This charmer’s game was extorting taxes from human refugees who had fled the death of the sun to live under artificial heat sources on Pluto(!) – but revolution triggers a recession in which he literally shrinks down to nothing, disappearing into the commode he appears to be sitting on. If only Mr Javid would do the same!

They say the secret of great comedy is timing, and Sajid Javid’s speech lambasting Labour’s ability with the economy could not come at a better time – to make a fool of him.

Javid heads up the Department of Culture, Media and Sport – you know, the government organisation that offended everybody earlier this week by denying everybody but the Prime Minister a chance to write a personal message on the wreaths laid at a First World War centenary commemoration in Glasgow.

Having made one faux pas already this week, Javid was set to ram his foot even further down his own gullet with his speech knocking Labour.

According to the Telegraph, he was planning to say that Labour’s “basic instinct” is to spend money, the party’s economic policies will leave Britain £500 billion worse-off, and this will be the equivalent of two-thirds of national income in 2035, while the Conservative approach would make it the equivalent of one-third of GDP.

The speech met with scorn before it was even made, over on alittleecon. In an article headlined Tory Minister Sajid Javid plucks some numbers out of his arse, author Alex Little pointed out:

  • Sajid Javid does not understand economics; national debt is merely an indicator of how much a government wants the economy to be funded by the private sector or the public. As government debt is issued in the form of bonds, all of it represents somebody else’s savings and more government debt means more private savings, while the economy is funded by the public sector.
  • Whether a low debt-to-GDP ratio is better than a higher one depends entirely on how it has been achieved. A fast-growing, dynamic economy can have a high level of government debt, while a slow-growing economy could have a very low debt-to-GDP ratio.
  • His timescale covers the next 20 years, making his claim a nonsense from the start. The electoral cycle is only five years so, for Labour to win in 2015 and continue winning until the date Mr Javid uses, they’d have to be doing something right!
  • Of course, Labour has not produced any spending plans yet and, when they arrive, the totals are unlikely to be hugely different from the Tories’ (although the way the money is used may differ greatly). So Mr Javid has (as Mr Little rather indelicately puts it) plucked some numbers out of his arse.

Mr Javid’s week is going very well – he has ruined a major ceremony with the behaviour of a schoolboy, then followed it up by showing that his understanding of economics – wasn’t he Financial Secretary to the Treasury before moving to the DCMS? Coupled with George Osborne as Chancellor, this could explain much – is worse than that of a schoolboy. And it’s only Wednesday.

Let’s all hope he goes for the hat trick.

Follow me on Twitter: @MidWalesMike

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