Labour, Tories spar over HSBC scandal

Britain’s leading political parties sought to distance themselves from the HSBC scandal, following publication of the names of top donors to the parties with accounts in the British bank’s Swiss division.

On Wednesday, The Guardian revealed that a number of donors to both the Conservative and Labour parties had accounts in Switzerland with HSBC’s private bank.

While most on the list had made donations to the Conservative Party, including a former party Treasurer and House of Commons member, Lord Fink, the list also included two Labour party donors including Lord Swraj Paul, founder of the industrial group Caparo.

‘Dodgy donors’

“How can the Prime Minister explain the revolving door between Tory party HQ and the Swiss branch of HSBC,” Labour Party leader Ed Miliband asked during a lively session of the Prime Minister’s Questions on Wednesday, calling Prime Minister David Cameron a “dodgy prime minister surrounded by dodgy donors.” Cameron retorted that the list revealed by the

Guardian included Lord Paul who he said had funded Gordon Brown’s election campaign.

“I’m very clear: people should pay their taxes in our country and no government has been tougher than this one in chasing down tax evasion and tax avoidance,” he added. However, Miliband sought to distance himself from former donors, arguing that none of those named had given the party “a penny” under his watch.

The Guardian said the donors named had held the accounts legally and for a wide variety of reasons.

Lord Paul has said in the past that his Swiss accounts were fully legitimate, known to UK tax authorities, and that he had paid the full taxes due.

The HSBC scandal has, perhaps unsurprisingly, become caught up in the political debate ahead of a general election this May. Labour has attacked the government over the way it had tackled the revelations in the leak – handed over to the tax authorities in 2010 – and has also raised questions about the appointment of the former head of HSBC, Stephen Green, as a trade minister and member of the House of Lords.

Transparency measures

The Conservatives have sought to focus the debate on tax transparency measures introduced by them and steps to tackle tax avoidance.