THE CONSERVATIVE Party has sustained another blow following the declaration by a billionaire, who has spearheaded the party’s campaign to win up to 160 key marginal seats, that he does not pay British tax on foreign earnings.
Lord Ashcroft was forced finally to reveal that he enjoys non-domicile (“non-dom”) tax status, just days before documents about tax promises he made when he was awarded a place in the House of Lords in 2001 are published.
Last night, the Conservative Party leader David Cameron downplayed the controversy about Lord Ashcroft – who has faced questions for nearly a decade, saying he was “delighted” the peer had clarified the issue.
Lord Ashcroft contributed £6 million to the Tories before spending limits came into force on January 1st, but he is expected to face further difficulties shortly when a BBC Panoramainvestigation is aired.
The Labour Party seized on his admission, with Alan Johnson, the home secretary, urging voters “to take a long hard look at how the Tories” have financed their much better-funded campaign.
On Sunday, Mr Cameron said it was his “patriotic duty” to remove Gordon Brown: “If that is the case, then all of his candidates are being funded by somebody who has not been patriotic,” said Mr Johnson.
Labour itself has received contributions from a “non-dom” member of the House of Lords, Lord Paul, although his contributions have been smaller and he has not been involved in Labour’s campaign.
The Tory peer, who lived for years in Belize and is worth £1 billion, said: “While I value my privacy, I do not want my affairs to distract from the general election campaign.”
First refused a peerage because of his tax status, he was subsequently given one after he promised the then Conservative leader, William Hague, that he intended “to take up permanent residence in the UK again”.
Now he is saying he will do so – thus becoming liable for full UK taxes on all of his international earnings – if the Conservatives win the election.
The Liberal Democrats have urged the Electoral Commission, which is probing whether Lord Ashcroft improperly contributed money to the Tories through foreign-based companies, to finish its investigations before the election.
The “legality and validity of the entire election”, said Chris Huhne MP, could be “tainted” if the Tories win and it is found later that he had broken the rules.