Cable quizzes Darling (Twickenham & Richmond Liberal Democrats)

Cable quizzes Darling

March 30, 2009 11:42 AM

cable • [Mar 26]: Vincent Cable: ' . . IT suggested that the private banks had now won their battle to obtain support from the taxpayer under the asset protection scheme while continuing arrangements of large-scale tax avoidance at the expense of the British Government . . '

Given the excitement over the Governor's comments, yesterday was a very good day to bury bad news. Can the Chancellor explain the comments reported from a Treasury spokesman yesterday? The spokesman said: "The asset protection scheme and the code of practice on taxation for the banking sector are separate issues." That completely undermined the original terms of that arrangement, which required the full disclosure of all tax opinions. It suggested that the private banks had now won their battle to obtain support from the taxpayer under the asset protection scheme while continuing arrangements of large-scale tax avoidance at the expense of the British Government and maintaining intact their tax avoidance departments.

Alistair Darling (Chancellor of the Exchequer, HM Treasury; Edinburgh South West, Labour): I do not know the quote that the hon. Gentleman is referring to. There are two distinct issues here, are there not? First, there is the asset protection scheme, which is designed to get credit flowing again and to ensure bank assets. As I said earlier, it is similar to the sort of thing that America and other countries are doing. There is a separate issue about the payment of tax by all companies, but the banks in particular. Both are equally important, because it is important that people pay what is due. On the hon. Gentleman's general points about yesterday, as I said to him before, I believe that what we are doing is absolutely right, not just for banking but more importantly for the wider economy.

Richmond upon Thames Liberal Democrats: