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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To stop Jeremy Corbyn, I am giving my second preference to Andy Burnham

The big question is whether Andy Burnham or Yvette Cooper will face Jeremy in the final round of this election.

Voting is now underway in the Labour leadership election. There can be no doubt that Jeremy Corbyn is the frontrunner, but the race isn't over yet.

I know from conversations across the country that many voters still haven't made up their mind.

Some are drawn to Jeremy's promises of a new Jerusalem and endless spending, but worried that these endless promises, with no credibility, will only serve to lose us the next general election.

Others are certain that a Jeremy victory is really a win for Cameron and Osborne, but don't know who is the best alternative to vote for.

I am supporting Liz Kendall and will give her my first preference. But polling data is brutally clear: the big question is whether Andy Burnham or Yvette Cooper will face Jeremy in the final round of this election.

Andy can win. He can draw together support from across the party, motivated by his history of loyalty to the Labour movement, his passionate appeal for unity in fighting the Tories, and the findings of every poll of the general public in this campaign that he is best placed candidate to win the next general election.

Yvette, in contrast, would lose to Jeremy Corbyn and lose heavily. Evidence from data collected by all the campaigns – except (apparently) Yvette's own – shows this. All publicly available polling shows the same. If Andy drops out of the race, a large part of the broad coalition he attracts will vote for Jeremy. If Yvette is knocked out, her support firmly swings behind Andy.

We will all have our views about the different candidates, but the real choice for our country is between a Labour government and the ongoing rightwing agenda of the Tories.

I am in politics to make a real difference to the lives of my constituents. We are all in the Labour movement to get behind the beliefs that unite all in our party.

In the crucial choice we are making right now, I have no doubt that a vote for Jeremy would be the wrong choice – throwing away the next election, and with it hope for the next decade.

A vote for Yvette gets the same result – her defeat by Jeremy, and Jeremy's defeat to Cameron and Osborne.

In the crucial choice between Yvette and Andy, Andy will get my second preference so we can have the best hope of keeping the fight for our party alive, and the best hope for the future of our country too.

Tom Blenkinsop is the Labour MP for Middlesbrough South and East Cleveland