Usain Bolt is wrong to oppose our tax laws

The sprinter won't compete in Britain again because he doesn't want to pay more tax.

Amid the drama of the Jamaican team's world record time in the 100m relay, which I was fortunate enough to witness in person, few noted Usain Bolt's post-race comments on tax. Asked why he did not compete in Britain more often (he refused to appear at Crystal Palace in 2010, for instance), Bolt cited our tax laws. "As soon as the law changes I'll be here all the time," he said.

Bolt's objection is to a law that allows the government to take a cut of his sponsorship and endorsement earnings as well as his appearance fee, which is currently taxed at 50 per cent. For instance, were he to take part in 10 meetings worldwide, with one in Britain, the Inland Revenue would tax him on 10 per cent of his worldwide sponsorship earnings. None of which is objectionable. Without tax funded events such as those in Britain, Bolt, who earns around £10m a year, would have no platform on which to perform and, consequently, no sponsorship. Those countries that don't tax non-resident sports people, as Britain does, should do.

The law was waived for the Olympics at the behest of the IOC (one wonders if we would have seen Bolt otherwise) and the government is now under pressure to permanently suspend it. But given the revenue it would lose from those athletes who do grace us with their presence, it is understandably reluctant to do so. Instead, it is Bolt who should reverse his stance and accept that it is legitimate for him to pay a proportion of his worldwide earnings to the British government. After all, having spending £9bn on the Olympics, we could do with the money.

Bolt's management complain that "his tax liability in the UK would exceed his appearance fee". Yet if true, that is only because his sponsorship earnings are so exorbitant to begin with. In any case, is it utopian to hope that athletes might be motivated by something other than money?

Update: Here's what the Treasury had to say on the subject in this year's Budget.

HMRC will revise its practice on the taxation of non-residents sports people to take training days into account when calculating the proportion of worldwide endorsement income subject to UK tax.

Jamaica's Usain Bolt reacts after winning the men's 200m Olympics final. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

ELLIE FOREMAN-PECK FOR NEW STATESMAN
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Why we, and Theresa May, will be watching George Osborne carefully

Osborne will use the Standard as a rival power base to the May government. But can he do the job and retain his credibility as a parliamentarian?

In his biography of the man who, in May, will become the new editor of the London Evening Standard while remaining as the MP for Tatton, the Financial Times commentator Janan Ganesh described how from an early age George Osborne “possessed a searing ambition to be a person of consequence”. Ganesh called Osborne “a psychological seer” and a “perspicacious analyst of people, including himself”. Moving through the gears, he added: “He has been a Pauline, a Bullingdon boy and a Bilderberg panjandrum, but he now belongs to the most truly privileged elite: those who are happy in their work.”

The Austerity Chancellor was published in 2012 when Osborne, who is 45, was considered to be David Cameron’s inevitable successor as leader of the Conservative Party and thus a future prime minister. As we all know, it did not quite turn out that way, the small matter of the EU referendum disrupting even the best-laid plans. Since being unceremoniously sacked last year by Theresa May, Osborne, who is an unapologetic liberal globaliser (he once told me that the book that had influenced him the most was Mill’s On Liberty), has been assiduously plotting his return to public life while assembling a portfolio of well-remunerated stipends, including a four-days-a-month contract with the asset management firm BlackRock, for which he is paid £650,000.

Before Christmas, Osborne was telling friends that he felt “unrepresented” by May’s Conservative Party. Because of the collapse of the Labour Party, he had concluded that the Brexit debate amounted, in essence, to an argument within the conservative family, among the Tory party, the press and the business community. The Scottish National Party naturally had a different view.

The first significant conversation I had with Osborne was at a Notting Hill drinks party – where else? I found him congenial and candid, and soon afterwards he invited me to accompany him on tours of the Nissan plant and the Hitachi factory, both in the north-east of England. The private Osborne is quite different from the public Osborne, who was booed at the 2012 Paralympics and has been caricatured as a “sneering Bullingdon boy”. Those who have worked closely with Osborne, including the former Liberal Democrat MP Danny Alexander, speak well of him – of his intellect and knowledge of and interest in history, but also of his decency and, most surprisingly, his shyness.

As chancellor, Osborne’s record was mixed. At least two of his Budgets unravelled calamitously, undermining his reputation for strategic intelligence. His dogmatic pursuit of expansionary fiscal contraction delayed Britain’s recovery from the Great Recession and his “fiscal surplus rule”, by which he attempted to bind future governments to a Budget surplus, was humiliatingly abandoned.

Osborne’s appointment as editor of the Standard is fascinating on many levels. For a start, it throws up any number of potential conflicts of interest between his role as an MP and his duty as an editor to challenge power, break stories and create mischief; between  his being a champion of the “Northern Powerhouse” and a celebrant of all things London; between his advisory role at BlackRock and the integrity of the Standard’s City pages. There is, too, the conflict of interest between Osborne, the spurned Remainer, and the Prime Minister, who is thought to resent the insouciance of the Cameroon chumocracy.

It’s certain that Osborne will use the Standard, a free newspaper with a daily distribution of nearly 900,000 copies, as a rival power base to the May government. But can he do the job and retain his credibility as a parliamentarian?

As an editor, I was relaxed about his appointment, even excited by it. It used to be common for politicians to write more than party propaganda for newspapers and magazines and for there to be free movement between Westminster and Fleet Street. Nigel Lawson is a former editor of the Spectator, as is Boris Johnson, who attempted and failed to be both an editor and an MP. Richard Crossman, a long-time contributing writer for the New Statesman, was our (unsuccessful) editor from 1970 to 1972 while staying on as an MP. John Freeman was a Labour MP before becoming a journalist; he edited the NS from 1961 to 1965. Michael Foot edited the Standard in his twenties, as well as Tribune after he entered the Commons.

I’ve no doubt that Osborne can succeed as an editor. Credentialism is overrated. He understands power, he has great contacts, he can write and, as a former applicant to the Times and Economist graduate trainee schemes, he has a long-standing interest in journalism. Whether he can combine editing with his obligations as an MP is for his constituents and his own conscience to decide.

Editing the Standard is no sinecure. Evgeny Lebedev is a hands-on proprietor and his staff have endured deep budget cuts. Osborne will bring to the role a touch of what Saul Bellow called “event-glamour”, as well as serious political purpose. The former austerity chancellor does not lack self-belief and his searing ambition to be a person of consequence is undiminished. Downing Street will be watching him very carefully, and so will his fellow journalists.

Jason Cowley is editor of the New Statesman. He has been the editor of Granta, a senior editor at the Observer and a staff writer at the Times.

This article first appeared in the 23 March 2017 issue of the New Statesman, Trump's permanent revolution