Cameron's tax return isn't enough

The PM should also reveal his wealth and assets.

I noted last week that the decision by the London mayoral candidates to publish their tax returns had set an important precedent that other senior politicians would feel compelled to follow. Since then, George Osborne has said he is "very happy" to consider publishing ministers' tax returns and, now, David Cameron has followed his Chancellor's lead. A source tells the Daily Telegraph:

The Prime Minister is relaxed about the idea of the tax returns of senior Cabinet Ministers being published, but wants the opportunity to explore how this might work

But would Cameron's tax return be enough to satisfy the new demand for transparency? In a significant intervention, David Davis has rightly argued that any proposal should also cover the disclosure of wealth and assets:

This will induce the politics of envy – but if you are going to do it, you have got to cover everything: wealth, trusts, whether you are a beneficiary of trusts, whether you are going to inherit things.

If you want really to know about someone’s tax affairs you have to know about more than just someone’s tax return. You have to know their assets, the potential inheritances, if they are going to be the beneficiaries of upcoming trust funds – all those things.

Among other things, this would draw further attention to Cameron and Osborne's privileged status, an ever more sensitive issue since the abolition of the 50p tax rate. Osborne, for instance, owns a 15 per cent stake in his family's wallpaper company Osborne & Little and stands to inherit around £4m from a trust fund, while Cameron's wealth is estimated at £3.2m (excluding inheritance). Indeed, the latter once memorably admitted to the Times that he couldn't remember how many houses he owns.

Here's the full exchange:

So how many properties do you own? “I own a house in North Kensington which you’ve been to and my house in the constituency in Oxfordshire and that is, as far as I know, all I have.”

A house in Cornwall? “No, that is, Samantha used to have a timeshare in South Devon but she doesn’t any more.” And there isn’t a fourth? “I don’t think so – not that I can think of.” Please don’t say, “Not that I can think of.” “You might be… Samantha owns a field in Scunthorpe but she doesn’t own a house…”

The rest of the interview was punctuated with Cameron’s nagging anxiety about how this exchange was going to make him sound: “I was wondering how that will come across as a soundbite”; “‘Not that I can think of’ makes me sound… I am really worried about that…”; “I am still thinking about this house thing”; and his parting shot was: “Do not make me sound like a prat for not knowing how many houses I’ve got."

Davis, who recently observed that Cameron and his ministers ("very well turned out, well-fed") "look like they’re in a completely different world", will have his own motives for demanding greater transparency. Ever since he fought Cameron for the Conservative leadership in 2005, Davis has rarely missed an opportunity to contrast his humble background (he was raised on a council estate in Tooting) with that of the Eton-educated Cameron.

Cameron is "relaxed" about the idea of tax returns being published. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty
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Forget planning for no deal. The government isn't really planning for Brexit at all

The British government is simply not in a position to handle life after the EU.

No deal is better than a bad deal? That phrase has essentially vanished from Theresa May’s lips since the loss of her parliamentary majority in June, but it lives on in the minds of her boosters in the commentariat and the most committed parts of the Brexit press. In fact, they have a new meme: criticising the civil service and ministers who backed a Remain vote for “not preparing” for a no deal Brexit.

Leaving without a deal would mean, among other things, dropping out of the Open Skies agreement which allows British aeroplanes to fly to the United States and European Union. It would lead very quickly to food shortages and also mean that radioactive isotopes, used among other things for cancer treatment, wouldn’t be able to cross into the UK anymore. “Planning for no deal” actually means “making a deal”.  (Where the Brexit elite may have a point is that the consequences of no deal are sufficiently disruptive on both sides that the British government shouldn’t  worry too much about the two-year time frame set out in Article 50, as both sides have too big an incentive to always agree to extra time. I don’t think this is likely for political reasons but there is a good economic case for it.)

For the most part, you can’t really plan for no deal. There are however some things the government could prepare for. They could, for instance, start hiring additional staff for customs checks and investing in a bigger IT system to be able to handle the increased volume of work that would need to take place at the British border. It would need to begin issuing compulsory purchases to build new customs posts at ports, particularly along the 300-mile stretch of the Irish border – where Northern Ireland, outside the European Union, would immediately have a hard border with the Republic of Ireland, which would remain inside the bloc. But as Newsnight’s Christopher Cook details, the government is doing none of these things.

Now, in a way, you might say that this is a good decision on the government’s part. Frankly, these measures would only be about as useful as doing your seatbelt up before driving off the Grand Canyon. Buying up land and properties along the Irish border has the potential to cause political headaches that neither the British nor Irish governments need. However, as Cook notes, much of the government’s negotiating strategy seems to be based around convincing the EU27 that the United Kingdom might actually walk away without a deal, so not making even these inadequate plans makes a mockery of their own strategy. 

But the frothing about preparing for “no deal” ignores a far bigger problem: the government isn’t really preparing for any deal, and certainly not the one envisaged in May’s Lancaster House speech, where she set out the terms of Britain’s Brexit negotiations, or in her letter to the EU27 triggering Article 50. Just to reiterate: the government’s proposal is that the United Kingdom will leave both the single market and the customs union. Its regulations will no longer be set or enforced by the European Court of Justice or related bodies.

That means that, when Britain leaves the EU, it will need, at a minimum: to beef up the number of staff, the quality of its computer systems and the amount of physical space given over to customs checks and other assorted border work. It will need to hire its own food and standards inspectors to travel the globe checking the quality of products exported to the United Kingdom. It will need to increase the size of its own regulatory bodies.

The Foreign Office is doing some good and important work on preparing Britain’s re-entry into the World Trade Organisation as a nation with its own set of tariffs. But across the government, the level of preparation is simply not where it should be.

And all that’s assuming that May gets exactly what she wants. It’s not that the government isn’t preparing for no deal, or isn’t preparing for a bad deal. It can’t even be said to be preparing for what it believes is a great deal. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to domestic and global politics.