Farage admits offshore tax fund was a mistake: "I'm not rich enough"

A bad day for UKIP as Farage's tax avoidance is exposed and the party loses its deposit in the Aberdeen Donside by-election.

Has Nigel Farage's seemingly inexorable rise finally come to an end? It feels that way this morning. The UKIP leader is on the defensive after the Daily Mirror revealed that he opened an offshore trust fund on the Isle of Man "for inheritance purposes", while in last night's Scottish by-election in Aberdeen Donside his party finished a disappointing fifth and lost its deposit after winning only 4.8 per cent of the vote. 

Farage wisely responded to the tax story by immediately admitting that it was "a mistake", although his declaration that he's "not rich enough to need one" is unlikely elicit much sympathy from voters. He said: "My financial advisers recommended I did it, to have a trust really for inheritance purposes and I took the advice and I set it up.

"It was a mistake. I was a completely unsuitable person for it. I am not blaming them, it was my fault.

"It's a vehicle that you chuck things in through your life that you don't need and you build up a trust fund for your children or grandchildren.

"It was called an educational trust and could have been used for grandchildren's schools fees, things like that.

"It was a mistake for three reasons. Firstly, I’m not rich enough to need one and I am never going to be.

"Secondly, frankly, the world has changed. Things that we thought were absolutely fair practice 10 years, 20 years ago, 30 years ago aren’t any more.

"Thirdly, it was a mistake because it cost me money. I sent a cheque off to set it up."

The story is all the more damaging for Farage because he also stands accused of hypocrisy. In a speech last month in the European Parliament, he told MEPs that they had a "common enemy – rich people, successful companies evading tax". Farage, of course, is guilty of legal tax avoidance, not illegal tax evasion, but it's the shared motive that counts. 

As for the by-election, while UKIP's share of 4.8 per cent might be considered impressive given that it had no previous presence in the seat, its prediction that it would keep its deposit (by polling at least 5 per cent) means it must be regarded as a failure. Lord Monckton, the party's Scottish leader, declared before the result: "We have made a breakthrough. It's clear now we'll keep our deposit".

Alex Salmond (interviewed in this week's NS) said: "They have never saved a single deposit in Scotland, which once again demonstrates a clear divergence between Scottish and Westminster politics."

Here's the result in full

  • Mark McDonald (SNP): 9,814 - 42% (-13.4%)
  • Willie Young (Labour): 7,789 - 33.3% (+5.5%)
  • Christine Jardine (Lib Dem)1,940 - 8.3% (+2.3%)
  • Ross Thomson (Conservative): 1,791 - 7.7% (-0.4%)
  • Otto Inglis (UKIP): 1,128 - 4.8% (+4.8)
  • Rhonda Reekie (Scottish Greens): 410 - 1.8% (+1.8%)
  • Dave MacDonald (Scottish National Front): 249 - 1.1% (+0.3%)
  • Tom Morrow (Scottish Christian Party "Proclaiming Christ's Lordship"): 222 - 0.9% (+0.9%)
  • James Trolland (Scottish Democratic Alliance): 35 - 0.1% (+0.1%)

Update: Labour has just issued its response to the tax story. John Spellar MP said: "I know Nigel Farage wants to appeal to disaffected Tories, but copying some of the Tories' biggest donors by using offshore trusts to avoid tax is taking things too far. It's typical of UKIP - they talk about how much they love this country, but they don't even bank here – it’s just hypocritical."

UKIP leader Nigel Farage addresses the media in London on May 3, 2013. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Four times Owen Smith has made sexist comments

The Labour MP for Pontypridd and Jeremy Corbyn’s Labour leadership rival has been accused of misogynist remarks. Again.

2016

Wanting to “smash” Theresa May “back on her heels”

During a speech at a campaign event, Owen Smith blithely deployed some aggressive imagery about attacking the new Prime Minister. In doing so, he included the tired sexist trope beloved of the right wing press about Theresa May’s shoes – her “kitten heels” have long been a fascination of certain tabloids:

“I’ll be honest with you, it pained me that we didn’t have the strength and the power and the vitality to smash her back on her heels and argue that these our values, these are our people, this is our language that they are seeking to steal.”

When called out on his comments by Sky’s Sophy Ridge, Smith doubled down:

“They love a bit of rhetoric, don’t they? We need a bit more robust rhetoric in our politics, I’m very much in favour of that. You’ll be getting that from me, and I absolutely stand by those comments. It’s rhetoric, of course. I don’t literally want to smash Theresa May back, just to be clear. I’m not advocating violence in any way, shape or form.”

Your mole dug around to see whether this is a common phrase, but all it could find was “set back on one’s heels”, which simply means to be shocked by something. Nothing to do with “smashing”, and anyway, Smith, or somebody on his team, should be aware that invoking May’s “heels” is lazy sexism at best, and calling on your party to “smash” a woman (particularly when you’ve been in trouble for comments about violence against women before – see below) is more than casual misogyny.

Arguing that misogyny in Labour didn’t exist before Jeremy Corbyn

Smith recently told BBC News that the party’s nastier side only appeared nine months ago:

“I think Jeremy should take a little more responsibility for what’s going on in the Labour party. After all, we didn’t have this sort of abuse and intolerance, misogyny, antisemitism in the Labour party before Jeremy Corbyn became the leader.”

Luckily for Smith, he had never experienced misogyny in his party until the moment it became politically useful to him… Or perhaps, not being the prime target, he simply wasn’t paying enough attention before then?

2015

Telling Leanne Wood she was only invited on TV because of her “gender”

Before a general election TV debate for ITV Wales last year, Smith was caught on camera telling the Plaid Cymru leader that she only appeared on Question Time because she is a woman:

Wood: “Have you ever done Question Time, Owen?”

Smith: “Nope, they keep putting you on instead.”

Wood: “I think with party balance there’d be other people they’d be putting on instead of you, wouldn’t they, rather than me?”

Smith: “I think it helps. I think your gender helps as well.”

Wood: “Yeah.”

2010

Comparing the Lib Dems’ experience of coalition to domestic violence

In a tasteless analogy, Smith wrote this for WalesHome in the first year of the Tory/Lib Dem coalition:

“The Lib Dem dowry of a maybe-referendum on AV [the alternative vote system] will seem neither adequate reward nor sufficient defence when the Tories confess their taste for domestic violence on our schools, hospitals and welfare provision.

“Surely, the Liberals will file for divorce as soon as the bruises start to show through the make-up?”

But never fear! He did eventually issue a non-apology for his offensive comments, with the classic use of “if”:

“I apologise if anyone has been offended by the metaphorical reference in this article, which I will now be editing. The reference was in a phrase describing today's Tory and Liberal cuts to domestic spending on schools and welfare as metaphorical ‘domestic violence’.”

***

A one-off sexist gaffe is bad enough in a wannabe future Labour leader. But your mole sniffs a worrying pattern in this list that suggests Smith doesn’t have a huge amount of respect for women, when it comes to political rhetoric at least. And it won’t do him any electoral favours either – it makes his condemnation of Corbynite nastiness ring rather hollow.

I'm a mole, innit.