Letter from The U.K.

LORD ASHCROFT OF BELIZE: The Billionaire Non-Dom Tory Tax Dodger

By Michael Faulkner – 21 March 2010

As the general election looms the two main contenders for office, Labour and the Tories, are in a state of disarray. Labour is lumbered with its leader, Gordon Brown, whose unpopularity seems beyond redemption. For well over a year electoral defeat has appeared certain. Until recently the Tories’ opinion poll lead was in double figures despite the fact that there was no discernible enthusiasm for a party which lacked any coherent idea about how to deal with the economic crisis other than a determination to introduce swingeing public spending cuts from the first day in office.

 In place of policies the Tories have relied on a PR exercise to promote the party leader, David Cameron. Led by their director of communications, Andy Coulson, this has sought to project Cameron as a young, energetic, enlightened liberal-minded reformer, keen to change the Tories’ image as the ‘nasty party’, rooted in the bigotry of the English shires. Coulson, on a rumoured salary of £200,000 , is a former editor of the Murdoch-owned News of the World, one of the most scurrilous of the press baron’s tabloid titles. He resigned that post in 2009 following exposure of the paper’s use of illegal hacking of celebrities’ mobile phones.  Cameron is himself a former PR man. His only job outside Tory politics was as director of corporate affairs at Carlton Communications. The party’s strategy has been to capitalise on New Labour’s – and particularly Brown’s – unpopularity. Inspired by Obama’s presidential campaign in 2008, they have assumed that electoral victory can be won by exploiting the public desire for ‘Change’. ‘Imagine another five years of Gordon Brown.’ Thus politics is reduced to a contest between the tired and sullen ‘bully’ Brown, and the smooth and youthful ‘New Conservative’ Cameron. As with Blair and New Labour, PR is everything. But will it work in the Tories’ favour?

Surprisingly, during the past few weeks the Tory poll lead has been drastically reduced from 20 points last summer to single figures in February and, according to one poll, to a mere 2%. This, it has to be said, is against a background of widespread disillusionment with all professional politics and politicians. It is likely that when the election comes, probably on May 6th, the turnout will be even lower than it was in the elections of 2001 and 2005. There is no enthusiasm for either of the main parties. The Tories know this and have therefore sought to play the personality card, hoping that Brown’s unpopularity will work to Cameron’s advantage. It has been remarked that with the electorate, Cameron is more popular than the Tory Party he leads and that the Labour Party remains more popular than its leader. Whatever may be the case, one thing is clear. The Tories are becoming increasingly worried that they may not win an outright majority. The prospect of a hung parliament, in which the balance of power is held by the Liberal Democrats and the Scottish and Welsh Nationalists, should be taken seriously.

At just the moment when they hoped to be able to extract maximum mileage from Andrew Rawnsley’s revelations about Brown’s bullying, the Tories have been hit by a scandal of far more serious political importance. Their deputy chairman, Lord Ashcroft, who in recent years has donated £5 million to the party, has been exposed as a ‘non-dom’ (someone not domiciled in the U.K.) who, on most of his vast income made outside Britain, pays no tax in this country. Michael Ashcroft is a billionaire whose main residential base for many years has been in the poverty-stricken tax haven of Belize where his business interests and property holdings are immense. His multi-million donations to the Tory party are targeted at marginal seats in the forthcoming election, where the Tories are anxious to overturn slender Labour or Lib.Dem. majorities to boost their chances of winning power. Thus, Ashcroft’s intervention in the British electoral process is a very serious matter. That is bad enough, but it gets worse.

For ten years Ashcroft has been a member of the House of Lords and, as such, he is part of the legislature which formulates taxation policy. In 2000, after intense lobbying on his behalf by his good friend William Hague, then leader of the Tory Party and now shadow foreign secretary, his ennoblement was eventually granted subject to the condition that he become permanently resident in the U.K. This he made a ‘clear and unequivocal assurance’ to do by the end of the year, and Hague announced that his lordship would, as a permanent resident, contribute ‘many millions’ in taxation to the exchequer every year. Ashcroft, we now know, failed to take up permanent residence here in order that he would not have to contribute those ‘many millions’. Instead, he managed to negotiate some dubious status as a ‘long term resident’, which enabled him to avoid paying tax. He then donated many millions to the coffers of the Tory Party.  

This issue has been on the boil for a long time. Cameron, Hague and other top Tories have prevaricated and obfuscated when asked about Ashcroft’s tax status. Ashcroft himself, needless to say, has haughtily disdained to respond at all to such impertinent questions – until he was compelled to do so by a demand from a Labour MP for information under the Freedom of Information Act. The Tories are squirming under the heat of this spotlight and they attempt to turn off the heat with counter-attacks against Labour-supporting non-dom donors. However, none of those has operated on anything like Ashcroft’s scale and none of them has held such a powerful position in the party. Still, it is difficult to regard as anything other than opportunistic, criticism from Lord Mandelson who enjoys the company of Russian oligarchs and famously said that New Labour had no problem with people becoming ‘filthy rich.’

The fact that the devious intrigues of billionaire ’Baron Belize’ and his ilk may not raise too many eyebrows amongst the general public is, perhaps, a sober reminder of the contempt with which most politicians are now regarded by most people.

PRAISE FOR A DIFFERENT MICHAEL: In memory of Michael Foot: 1913 – 2010.

Sometimes the death of a public figure throws into sharp relief certain features and values of the times in which we live and brings us to reflect on the nature of changes that have occurred over decades. So it was with the passing of Michael Foot who died at the age of 96 on the 3rd of March.

He was a well-known figure in British politics for more than sixty years, first coming into prominence on the left of the Labour Party in the years after the Second World War. He was elected to Parliament in the Labour landslide victory of 1945 for the Devonport division of Plymouth which he held until 1955. He returned to Parliament in 1960 as MP for the South Wales mining constituency of Ebbw Vale, which had been represented until his death in 1960, by his great friend Aneurin Bevan. He remained MP for the constituency until he stood down in 1992.

Like his hero, Nye Bevan, Foot aroused great hostility amongst Conservatives. He is frequently derided for his period as leader of the Labour Party between 1980 and ’83 which led that year to the worst electoral defeat Labour had suffered since 1935. Unmentioned in any of the obituaries is an episode from 1983 that expresses the brutishness of the ascendant Thatcherite mood. At the Tory pre-election conference the unspeakably awful ‘comedian’ Kenny Everett, called upon to perform for the jubilant hordes of young conservatives, shouted inanely ‘Let’s kick Michael Foot’s stick away! Let’s bomb Russia!’ Highly amused, they roared their approval. In fact, the seemingly frail Foot, who had used a walking stick ever since a serious car accident, was as tough as nails. The Labour Party had suffered a serious split after the election defeat of 1979 resulting in most on the right of the party breaking away to form the short-lived Social Democratic Party. Labour could never have won the election in 1983, no matter who had led it.

Michael Foot was not a ‘great leader’ of the Labour Party, but he was a great man and a wonderful human being. Whatever their differences with him, he deserves the most fulsome praise from those who, as he did, proudly describe themselves as socialists. He deserves the praise of all who work for a better future for humanity. Why is he worthy of such praise?

He was a passionate social democratic radical. He had an unblemished record as an anti-fascist. His first book, written under the pseudonym ‘Cato’ in 1940 when he was 27 years old, was a blistering criticism of Baldwin’s and Chamberlain’s appeasement of Nazi Germany. By the end of the year it had sold 150.000 copies. He was an outstanding journalist, for many years an editor of the Labour Left paper ‘Tribune’. With Bevan and Mikado he founded the ‘Keep Left group in the Labour Party during the years of Atlee’s government. In the late 1950s he was a founder of the Campaign for Nuclear Disarmament, a cause to which he was committed for the rest of his life. In a tradition now almost lost, he was a marvellous, captivating speaker – one of the great parliamentary speakers of all time to rank with Aneurin Bevan and Churchill.

But perhaps his greatest achievement was his mastery of the pen. He was a historian who threw himself with passion into literary biography. His subjects were the greatest in the English radical tradition. He wrote biographies of Hazlitt, Byron and, of course, Bevan. The sheer scope of his interests and erudition as an essayist is evident in the wonderful collection of monographs about his contemporaries brought together in ‘Loyalists and Loners, published in 1986.

Michael Foot was married for many years to the film-maker Jill Craigie who died in 1999. Well into very old age he was a familiar sight, with his shock of white hair, walking his dog on his beloved Hampstead Heath. It is sad to think that we may never look upon his like again. He towers head and shoulders above those who, unlike him have succumbed to the shallow pomp of peerages, or been corrupted by power, money or high office. He wanted none of that. The billionaire financial wizards and political mediocrities responsible for the present crisis have no comprehension of the values represented by Michael Foot. It is his memory and those values that we should cherish and their world which should be swept away.

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