Gauke has left the Tories looking even more out-of-touch

"Cash-in-hand" payments are wrong but Gauke was the wrong person to say so.

With his declaration that it is "morally wrong" to pay tradesmen "cash-in-hand", Treasury minister David Gauke has managed to antagonise both the left and the right. For the left, Gauke's comments are a cynical attempt to distract attention from wealthy tax avoiders, for the right they are an illegitimate attempt to enforce morality.

Here's the offending statement in full:

Getting a discount with your plumber by paying cash in hand is something that is a big cost to the Revenue and means others have to pay more in tax. I think it is morally wrong. It is illegal for the plumber but it is pretty implicit in those circumstances that there is a reason why there is a discount for cash. That is a large part of the hidden economy.

Ignore for the moment that Gauke is a minister in a government that immorally reduced taxes for the richest, and it is hard to take issue with his comments. Either tax avoidance is morally wrong or it isn't. The difference between paying a plumber cash-in-hand and placing your earnings in a limited company (as Ken Livingstone did), is one of degree, not kind. One can argue, as some on the right do, that "tax efficiency" is neither illegal nor immoral, but that isn't the left's position.

What has already become clear this morning is that Gauke was the wrong person to deliver this message. As Exchequer Secretary to the Treasury, he is a member of a government that, at a time of austerity, has raised taxes on the poorest, while reducing them for the richest, and that has done all too little to combat prolific avoiders. The discovery that Gauke's wife is a tax avoidance lawyer, leaves him further exposed. Most voters will see his comments as further evidence that the "out-of-touch" Tories are determined to squeeze the little guy. First they came for you pasty, now they come for your plumber. The Treasury has already issued a clarification, stating that Gauke was answering a specific question, not outlining government policy. But with his comments now the subject of countless phone-in debates, the damage has already been done.

Treasury minister David Gauke said it was "morally wrong" to pay plumbers cash-in-hand. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Donald Trump vs Barack Obama: How the inauguration speeches compared

We compared the two presidents on trade, foreign affairs and climate change – so you (really, really) don't have to.

After watching Donald Trump's inaugural address, what better way to get rid of the last few dregs of hope than by comparing what he said with Barack Obama's address from 2009? 

Both thanked the previous President, with Trump calling the Obamas "magnificent", and pledged to reform Washington, but the comparison ended there. 

Here is what each of them said: 

On American jobs

Obama:

The state of our economy calls for action, bold and swift.  And we will act, not only to create new jobs, but to lay a new foundation for growth.  We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together.  We'll restore science to its rightful place, and wield technology's wonders to raise health care's quality and lower its cost.  We will harness the sun and the winds and the soil to fuel our cars and run our factories.  And we will transform our schools and colleges and universities to meet the demands of a new age.

Trump:

For many decades we've enriched foreign industry at the expense of American industry, subsidized the armies of other countries while allowing for the very sad depletion of our military.

One by one, the factories shuttered and left our shores with not even a thought about the millions and millions of American workers that were left behind.

Obama had a plan for growth. Trump just blames the rest of the world...

On global warming

Obama:

With old friends and former foes, we'll work tirelessly to lessen the nuclear threat, and roll back the specter of a warming planet.

Trump:

On the Middle East:

Obama:

To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect. To those leaders around the globe who seek to sow conflict, or blame their society's ills on the West, know that your people will judge you on what you can build, not what you destroy. 

Trump:

We will re-enforce old alliances and form new ones and unite the civilized world against radical Islamic terrorism, which we will eradicate completely from the face of the earth.

On “greatness”

Obama:

In reaffirming the greatness of our nation we understand that greatness is never a given. It must be earned.

Trump:

America will start winning again, winning like never before.

 

On trade

Obama:

This is the journey we continue today.  We remain the most prosperous, powerful nation on Earth.  Our workers are no less productive than when this crisis began.  Our minds are no less inventive, our goods and services no less needed than they were last week, or last month, or last year.  Our capacity remains undiminished.  

Trump:

We must protect our borders from the ravages of other countries making our product, stealing our companies and destroying our jobs.

Protection will lead to great prosperity and strength. I will fight for you with every breath in my body, and I will never ever let you down.

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland