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Blears left in the cold as Prime Minister defends Hoon and Purnell on tax
Nicholas Cecil, Deputy Political Editor21 May 2009
Hazel Blears was looking increasingly isolated today after Gordon Brown strongly defended other Cabinet ministers facing expenses allegations.
The Prime Minister insisted he did not believe that Transport Secretary Geoff Hoon and Work and Pensions Secretary James Purnell had exploited the tax and Commons expenses systems.
Both faced questions over why they did not pay capital gains tax on the sale of properties which had at one stage being declared to the Commons authorities as second homes. However, Mr Brown said: “As far as I know there is not a problem that needs to be dealt with.” Mr Hoon and Mr Purnell have strongly denied any wrongdoing.
The Prime Minister also made clear that he considers their actions to be different from those of Communities Secretary Ms Blears, who has repaid £13,000 for capital gains tax she did not pay on the sale of a London flat which she had declared to the Commons authorities as her second home. “In Hazel Blears's case, she immediately, when she found out there was a problem, repaid the money,” he said. “She apologised, said it was a mistake and has rectified the situation.”
His words were more tempered than when he denounced her behaviour as “completely unacceptable” but the contrast with his defence of the two other Cabinet ministers will only fuel speculation that she is facing demotion in a reshuffle after the 4 June European and local elections.
Ms Blears today admitted the scale of damage the expenses row had inflicted on her political standing. She said: “I know it will take many months and years for my reputation to recover.”
Both Mr Hoon and Mr Purnell insist the taxman has confirmed that no capital gains tax was due. Mr Purnell did not pay tax on the sale of his London flat in October 2004. Mr Hoon did not pay tax on an estimated £300,000 profit on the sale of his London home in 2006. The house was rented out while Mr Hoon, who also owned a family home in Derbyshire, lived in a grace-and-favour property from 1997 to 2006.
Reader views (21)
I'm definitely in the wrong career. After living in Japan for so long and seeing Japanese politicos lining their pockets at the expence of honest people, I'm sure that if I'd entered politics, I'd have a cosy mansion in the home counties, a holiday flat or two on the cote d'azur and a perhaps a duck shelter, a swimming pool, tennis court and moat all kept in good nick by the the mugs who elected me.
- Victhebrit, Nara, Japan, 22/05/2009 05:19
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Those of you waiting for one of these trough snouters to ACTUALLY be sacked, shouldn't hold your breath. The economy is in a mess, unemployment is going through the roof, businesses are going to the wall at an alarming rate and public anger at the criminal MPs getting away with daylight robbery is at an all time high. What do parliament do about it... make empty speeches and go on holiday. Are they hoping it will all be over when they get back from recess.
Crisis? What crisis? Don't bother parliament they are on holiday.
- Mike, Newport, UK, 21/05/2009 17:09
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I listened to a senior labour female on R4 today [it was probably HB] who seemed totally unable to grasp the significance of the fact that HMG was quietly maintaining the status quo re. "expenses" until the gaff was blown via the Telegraph. She was unable to accept that the only obvious way that the electorate could make their, reasonable, views shown concerning specific MPs would be to hold a general election ASAP. It was pretty pathetic listening to this person desparately trying to talk her way out of the impossible situation she was in & yet still treating the "public" with the contempt & condescension we have now got used to. Call an election & let the voters decide.
- Robin Sidebottom, bishops castle, shropshire, 21/05/2009 16:58
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Its so refreshing to at last see someone benefitting from my hard earned tax, Usually its dished out to a load of scroungers who spend it on beer, ciggies and the latest mobile phone. But this time Ali Baba Brown and his theiving cronies are getting immense pleasure by spending on worthwhile items like Plasma T.V;s soft furnishing's and second home's.
- Gary Hopkins, Hatfield, 21/05/2009 16:44
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Mordwinof - You were required to pay CGT on 1/3 of your property, probably because you were claiming 1/3 of the mortgage and other household costs against your rent income i.e. the 'business' proportion of your house. Hard cheese, mate.
Malcolm, London - It is simply a matter of advising HMRC in writing which of your properties you elect to be your PPR. Your choice. You don't have to live there. Any subsequent capital gains from the sale of your PPR are free from tax. It's slightly more complicated than that, but that's the gist. Nobody broke any laws. All citizens have the same choice. It's just that some of us are better informed than others. Get a good Tax Accountant.
- Haskey, London SE1, 21/05/2009 16:31
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Shuffling arounds seats between the increasing band of untrustworthy MP's is hardly a way of creating a 'New Model Parliament'. What we need is a General Election so that we know that all those elected are corruption free.
- Ian, dartford, 21/05/2009 16:19
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So GB believes there is not a problem to be dealt with does he? I think he might have overlooked the slight problem of an irate public.
- John, Andover England, 21/05/2009 16:11
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They were put in office to serve the public yet they went on a spree of self serving at the Taxpayers expense. They betrayed the trust and duty of that of position and privilege in order to get personally better off financially. Then they seem to express that we should all forgive and forget so they can get back to business as usual , self-serving!
- A.Taxpayer, London, 21/05/2009 16:05
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Blears and Jacqui Smith are due to be demoted in the next reshuffle - but they will be kicked out at the next election. It will be so refreshing not to have their odious faces appearing in our newspapers every day.
- R.F., Yorks, UK, 21/05/2009 16:02
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Lots of consistency there then!
- Brian Hughes, wales, 21/05/2009 16:00
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She reminds me of Chuckie ..... good riddance to her.
- Pete, N1, 21/05/2009 15:51
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Brown, being lord of all he surveys, gets to pick and choose who's guilty does he? Never mind, they'll soon be gone.
- Paul Freeman, London, England, 21/05/2009 15:50
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I find the fact that Hoon does not have to pay CGT on the property extraordinary. My wife & I sold our house in 1995 & because we had let some rooms as bedsits & a flat we were informed by the I.R. that capital gains were due on one third of the sale price. To avoid this we moved to France & as long as we did not return to the U.K for 3 years no tax was payable.
Not suprisingly we have not returned.
As for Mrs Blears,why should her "reputation" ever recover? She should be in Holloway.
- Mordwinoff, Lisle France., 21/05/2009 15:43
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Who gives a stuff. Just sow her mouth up, and put her out with the rest of the garbage.
- Lezli Taubler, London / ENGLAND, 21/05/2009 15:41
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Who cares what Crash said? He lost all credibility months ago.
- Marianne, SW France/London, 21/05/2009 15:36
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Let me try & get this clear - your article says ..... "Mr Hoon did not pay tax on an estimated £300,000 profit on the sale of his London home in 2006. The house was rented out while Mr Hoon, who also owned a family home in Derbyshire, lived in a grace-and-favour property from 1997 to 2006."..... So, Hoon did not live in his London house for 8/9 years from 1997 - 2006. During this time his London home was rented out. His main/family home was in Derbyshire so his London home was NOT his "prime residence". As I understand it, NORMAL people (ie obviou slynot MP's!!)are only exempt fronm Capital Gains Tax on their "prime residence". So can someone from HMRC or No10 Downing Street explain to me WHY exactly Hoon did not pay CGT when he sold his London house??? In addition, where has alistair Darling gone - disappeared from the face of the earth I think - keeping his head down more likely. Has he been asked WHY he didn't pay stmp duty when he purchased his house??
- Malcolm, London, 21/05/2009 15:21
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Total rubbish - they r ALL the same - grab, grab, grab. Sack them all - oh hang on, this is the party of tough on crime, causes of crime etc etc etc. - a bunch of spivs on the make. ZanuLabour - an examplt to everyone on how to MILK us dry.
- Ronreagan, aberdeen, 21/05/2009 15:07
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Bliars lied to HMRC on her tax return by failing to declare capital gains liable for tax.
This is a criminal offence for which any ordinary person would be prosecuted. You cannot simply claim to have made a clerical error, send off a cheque and expect it all to simply go away.
HMRC should prove that the law applies equally to all by prosecuting this trough snouter. Otherwise, there is no reason why the rest of us should stop paying every tax other than PAYE income tax, as the precedent for acceptable avoidance will have been set.
- Keith Lonsdale, Doncaster, 21/05/2009 14:58
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Surely we can't be that lucky? Gordon has got so many things to apologise for and so many disasters to manage that he's simply forgotten the teeny-tiny Ms.Blears. I still gasp with disbelief that El Gordo thinks he can lead the country. You don't ask the burglar to fix your window locks afterwards.
- Mark, London, 21/05/2009 14:56
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She said: “I know it will take many months and years for my reputation to recover.”
NO Mam - when your electors discovered that you were robbing them, that was the end of your reputation (or the beginning of your new one) for ever.
We don't want crooks in Parliament any more.
- Sean, Coventry UK, 21/05/2009 14:55
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Does anyone else wonder of this investigation should now extend to local councils so that we can be sure that our council taxes are not suffering the same abuse?
- Graham Allaway, St. Albans, UK, 21/05/2009 14:50
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