William Hague admits mistakes over handling of Lord Ashcroft affair

907AM GMT eighteen March 2010

William Hague and Lord Ashcroft

Mr Hague certified he had been wrong to oath that Lord Ashcroft would compensate "tens of millions" to the taxpayer on apropos a counterpart when in actuality the Conservative donor defended non-domiciled standing for taxation purposes.

The row over Lord Ashcrofts taxation standing has been reignited by leaked papers that suggested that Mr Hague had well known 10 years ago that his crony and monetary devotee had concluded usually to turn a British "resident" rather than a full taxation payer when entering the House of Lords.

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His promise, in a minute to Tony Blair, the then-prime minister, that Lord Ashcroft would compensate "tens of millions" to the exchequer by receiving up a chair gave the sense that he would stop to a "non-dom" and proceed profitable taxation on all his abroad earnings.

In fact, the counterpart reliable last month, he continues to be non-domiciled for taxation purposes, and is usually an central "long-term resident".

Mr Hague told BBC Radio 4"s Today programme "The one thing I will concur on this - and that I think in review was a inapplicable designation - was to contend tens of millions since it might have cost him millions. We don"t know, it might cost him millions in to the future.

"None of us can know - alternative than him, I suppose, and the taxation authorities - what it has cost

"But it was positively an critical shift for him to go from being not proprietor in the UK."

The leaked Cabinet Office papers show that there were four-months of negotiations over Lord Ashcrofts entrance to the Lords after he was primarily deserted on the drift that he was a non-dom.

A note by James Arbuthnot, the partys arch whip, shows that Mr Hague was kept sideways of the discussions, that took place 10 years ago, and was wakeful of the last understanding that reliable that Lord Ashcroft would be postulated a chair if he became a resident.

The papers show that Mr Arbuthnot pronounced Mr Hague, who was celebration personality at the time, reliable he was confident with the arrangements.

The shade unfamiliar cabinet member insisted, however, that he had voiced capitulation for the outlines of the understanding but knowning item and that he usually found out for sure that the counterpart was a non-dom at the begin of the year.

In the inserted period, he had regularly insisted that Lord Ashcroft had complied with the conditions set by the authorities for apropos a peer.

David Cameron, the celebration leader, schooled usually last month that he was a non-dom.

Mr Hague told BBCs Radio 4 Today Programme that the papers showed that there was no "secret Tory deal" since the Government had been entirely sensitive of Lord Ashcrofts taxation status.

He pronounced that he could not recollect the full sum of the discussions he had at the time about the understanding struck by Lord Ashcroft, and as he was "not a taxation accountant," did not regard himself with the full sum of the arrangement.

Chris Huhne, the Liberal Democrat home affairs spokesman, pronounced "William Hague betrothed the budding apportion that prior to Lord Ashcroft perceived his nobility he would compensate "tens of millions" in British tax, but afterwards never even checked either the guarantee was kept. He has treated with colour the taxpayer with sum contempt.

"It is definitely unimaginable to say, as William Hague did this morning, that he was not wakeful of the taxation implications of these negotiations that dragged on for 4 months when he was kept sensitive by his closest loyalist, the Chief Whip.

"Mr Hague is guilty of a asocial cover for a unfair preference that has cost British taxpayers some-more than �100 million.

"William Hague is not fit for any purpose in Government, let alone that of unfamiliar secretary. Lord Ashcroft contingency right away encounter his �100 million taxation bill."

Two Commons committees will currently launch probes in to the affair. However, the Conservatives are boycotting them, claiming that the investigations are politically motivated."