Teenage ministers

I watched a good part of Treasury questions on the BBC Parliament channel. I think that George Osborne could do a little less of the partisan point scoring, most of us have got the message that Labour made serious fiscal policy errors. It would be better if he cast himself as someone above the fray steering the nation through a serious financial crisis.

Lord Lawson when he was Chancellor used to complain about 'teenage scribblers' which was slightly ironic as he had once been a financial journalist himself. Looking at the Treasury bench with Danny Alexander sitting there it looked as if we now have teenage ministers, although I suppose this is the equivalent of saying all the policeman look young today. Alexander is no doubt very smart, but he does gravitas less well than his predecessor.

Alexander was thrown quite badly by a question from a grumpy Scottish Labour MP about the No.10 comms director, Andy Coulson, an Essex boy made good (a label that could also be applied to me). It was interesting to see George Osborne reassuring him after the exchange and the chemistry between them seemed to be good.

I still find it a little odd to hear Lib Dem ministers and Conservative MPs referring to each other as 'my honourable friend', but that's Coalition Government.

Telegraph targets Alexander

The Daily Telegraph has now targeted the new Chief Secretary to the Treasury David Alexander over allegations that he used a tax loophole to avoid paying capital gains tax on his second home in London: Danny

They claim it is part of their campaign on behalf of 'ordinary' second home owners and small investors. I am not sure what an 'ordinary' second home owner is. Some people, including politicians, need a second home for work related reasons. Others choose to have one for lifestyle reasons, but it's hardly something one can afford to do on a median income. As for small investors, I am one, but I wouldn't buy shares outside of an ISA or a SIPP as a tax efficient vehicle and I would expect to pay capital gains tax if I sold a substantial number.

The fact of the matter is that an anomaly has developed between the top rate of income tax and the top rate of capital gains tax. This opens the way for tax avoidance which is not acceptable in a period of fiscal consolidation. How one closes this gap is another matter: one does have to do it in one go or immediately and one could look at the exemption on relatively small gains.

The Telegraph should be careful what they wish for. Presumably they would prefer a Conservative majority government, but that is not a possibility. The alternative is a minority Conservative government which would be much weaker. The objective of the coalition was to establish 'strong and stable' government at a time of economic and financial crisis. Although phrases like the 'national interest' are used too readily, this is a period when we need to try and rise about cheap political point scoring to undermine one part of the Coalition Government.