Fat Cats slated

The Bishop of Blackburn spoke for many of us last month when he criticised City “fat cats” and their huge bonuses.

At a time when recession looms and things are getting really difficult for many people, it is more important than ever that we address this issue.

The sums of money involved take my breath away.

In 2007, over £9 billion was dished out in City of London bonuses. 4,200 people got at least £1 million apiece. A few hundred individuals got over £5m each and, amazingly, 20 received £10m or more. Each.

Over recent years, swashbuckling private equity raiders have taken over famous High Street names such as Boots the Chemist, British Home Stores, Debenhams and Halfords, selling “surplus” property holdings and “sweating the assets” and walking away with millions.

There is a financial crisis, global in nature, but we have our part to play in tackling the worst abuses.

In Parliament, I have been pressing the Government to take action against offshore financial centres such as the Channel Islands and the Caymans where individuals and companies face woefully lax regulatory regimes and secrecy and tax avoidance is the order of the day.

I have had a long running campaign to rid Parliament of Tax Exiles. Last year my Private Members Bill ran out of time and failed to become law but its aims are as relevant now as ever.

It is scandalous that there are people in Parliament who make our laws but don’t pay our taxes.

I told the Commons the Conservative peer and donor, Lord Laidlaw, was ennobled in 2004 after promising to become a UK resident for tax purposes. He reneged on that promise and lives in tax exile in Monaco.

Another Conservative peer, Lord Ashcroft openly admits bankrolling local Conservative Associations yet refuses to say if he pays UK taxes. He is based in the Central American tax haven of Belize.

I have asked the Information Commissioner to investigate. Watch this space.