THE ALLEGATIONS AGAINST GEORGE OSBORNE SUGGESTED HE WAS “NOT FIT TO BE CHANCELLOR” – LORD OAKESHOTT
A sleaze investigation has been launched into the expenses claims of George Osborne. The Shadow Chancellor has been accused of ‘flipping’ his designated second home from London to his constituency farmhouse.
It is alleged this happened after he took out a £450,000 mortgage on the rural property - nearly £5,000 more than the price of the house.
A Labour Party activist claims he then made expenses claims to cover interest payments on the whole debt, the activist was apparently so incensed they wrote to the Parliamentary Standards Commissioner.
Naturally, the Tories are incensed but a sleaze investigation will now follow by the Commissioner John Lyon and his decision to investigate is a blow to David Cameron’s closest ally.
It came as Mr Lyon rejected complaints about Chancellor Alistair Darling’s repeated ‘flipping’ of his second home to make claims on multiple properties.
If he launches a full-blown inquiry it would mean a cloud hanging over Mr Osborne’s career for months, until a verdict is reached.
It will also fuel discontent on the Tory backbenches over the harsh treatment meted out to MPs outside Mr Cameron’s inner circle over their expenses claims.
Though several members of the Shadow Cabinet, including Mr Osborne, have repaid money to the Commons fees office, senior MPs complain that they have got off lightly compared to others.
Mr Lyon was asked to investigate by Laurie Burton, the chairman of the local Labour Party in Mr Osborne’s constituency in Tatton, Cheshire.
And after consulting the Commons standards and privileges committee, led by Tory grandee Sir George Young, he replied saying: “I have accepted your complaint and am inviting his comments.”
In a letter, Mr Lyon said he would look into a claim that “Mr Osborne claimed for mortgage payments that were not necessarily incurred, contrary to the rules of the House”.
Mr Lyon said he had put the claims to Mr Osborne, adding: “When I receive his response, I will consider how best to proceed.”
The Commissioner dismissed another complaint that the Shadow Chancellor avoided paying capital gains tax when he ‘flipped’ his second home.
“This is a matter for HMRC (HM Revenue and Customs)”, he wrote.
Liberal Democrat Spokesperson for the Treasury in the House of Lords, Lord Oakeshott said the allegations against Mr Osborne suggested he was “not fit to be Chancellor”.
“George Osborne should know that you can’t tell the taxman one story and the fees office another,” he said. “We asked him to come clean and pay the taxpayer back weeks ago but he did nothing.
“This is a real test of David Cameron’s leadership - he needs to make his Shadow Chancellor pay back the tax he’s dodged. It looks like Cameron has either got one rule for the Notting Hill set and another for the knights of the shires, or that George Osborne is simply too close to chop.”
A spokesman for Mr Osborne said he was ‘relaxed’ because he had done nothing wrong.
