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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Voters are turning against Brexit but the Lib Dems aren't benefiting

Labour's pro-Brexit stance is not preventing it from winning the support of Remainers. Will that change?

More than a year after the UK voted for Brexit, there has been little sign of buyer's remorse. The public, including around a third of Remainers, are largely of the view that the government should "get on with it".

But as real wages are squeezed (owing to the Brexit-linked inflationary spike) there are tentative signs that the mood is changing. In the event of a second referendum, an Opinium/Observer poll found, 47 per cent would vote Remain, compared to 44 per cent for Leave. Support for a repeat vote is also increasing. Forty one per cent of the public now favour a second referendum (with 48 per cent opposed), compared to 33 per cent last December. 

The Liberal Democrats have made halting Brexit their raison d'être. But as public opinion turns, there is no sign they are benefiting. Since the election, Vince Cable's party has yet to exceed single figures in the polls, scoring a lowly 6 per cent in the Opinium survey (down from 7.4 per cent at the election). 

What accounts for this disparity? After their near-extinction in 2015, the Lib Dems remain either toxic or irrelevant to many voters. Labour, by contrast, despite its pro-Brexit stance, has hoovered up Remainers (55 per cent back Jeremy Corbyn's party). 

In some cases, this reflects voters' other priorities. Remainers are prepared to support Labour on account of the party's stances on austerity, housing and education. Corbyn, meanwhile, is a eurosceptic whose internationalism and pro-migration reputation endear him to EU supporters. Other Remainers rewarded Labour MPs who voted against Article 50, rebelling against the leadership's stance. 

But the trend also partly reflects ignorance. By saying little on the subject of Brexit, Corbyn and Labour allowed Remainers to assume the best. Though there is little evidence that voters will abandon Corbyn over his EU stance, the potential exists.

For this reason, the proposal of a new party will continue to recur. By challenging Labour over Brexit, without the toxicity of Lib Dems, it would sharpen the choice before voters. Though it would not win an election, a new party could force Corbyn to soften his stance on Brexit or to offer a second referendum (mirroring Ukip's effect on the Conservatives).

The greatest problem for the project is that it lacks support where it counts: among MPs. For reasons of tribalism and strategy, there is no emergent "Gang of Four" ready to helm a new party. In the absence of a new convulsion, the UK may turn against Brexit without the anti-Brexiteers benefiting. 

George Eaton is political editor of the New Statesman.