Ashcroft tax status used as weapon against Cameron

The Tory leader stonewalled questions yesterday about his knowledge of Ashcroft’s tax affairs, insisting the peer had “resolved” the issue with his announcement on Monday that he paid UK tax on his earnings in the UK but not on overseas income.

A call from Lord Mandelson for the House of Lords Appointments Commission to investigate came to nothing when the panel of senior peers said it did not have the powers.

The First Secretary denounced the Commission’s decision as “unacceptable” and accused the Tory leadership of “dodging the truth” about Ashcroft’s status.

The Conservatives should now return the millions of pounds donated by Lord Ashcroft while he was not paying full UK tax, said Lord Mandelson.

Mr Cameron refused to say when he learned that his party’s deputy chairman was a non-dom and told journalists who challenged him on the issue that they were “flogging a dead horse”.

“People wanted to know what his tax status is,” he said. “People now know what his tax status is. This has been resolved. The horse is dead and should no longer be flogged.”

But Schools Secretary and Normanton MP Ed Balls said Labour regarded the issue as “a question of the integrity of our politics” and would not let it rest.

Mr Balls said: “This has actually moved into a real judgment issue about both William Hague and David Cameron.

“David Cameron wants to be Prime Minister, he’s got to answer the questions.

“It’s actually about judgment. What did he know and William Hague know and when did they know that Lord Ashcroft was not paying tax and using foreign money to pay for Conservative electioneering?

“They’ve got to answer those questions or if not there will be a question over both of their judgment and we will not let this drop.

“This is about the integrity of our politics. David Cameron has got a responsibility to answer the questions, not to dismiss us and people who ask questions.”

Lord Ashcroft gave a “clear and unequivocal assurance” in 2000 that he would take up permanent residence in the UK as a condition of being granted a seat in the House of Lords after being nominated by then Tory leader Mr Hague.

The peer went on to give substantial financial support to the Conservatives, making donations worth more than 4m since Mr Cameron became leader in 2005 and being appointed deputy chairman with responsibility for campaigning.

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