| Prescott apologises over non-payment of council tax, says it was an error |
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LONDON: Britain's deputy prime minister John Prescott apologised to the MPs for his failure to pay council tax on his grace-and-favour home, and handed 3,830.52 to the government, asking Westminster City Council to calculate the balance he owed.
Prescott, also minister incharge of council tax, said there was a genuine misunderstanding on the tax computation of the Admiralty House flat in London and tendered his apologies to the House of Commons. He then reimbursed the amount. The balance amount will have to be calculated afresh as the tax had been paid at a discounted second home rate. Sources said there could be a further payment of around 2,000 pounds required from him.
The issue came to be raised in the house by his Tory shadow spokesperson Caroline Spelman, who said Prescott was not paying council tax at Admiralty House or Dorneywood, his official country residence in Buckinghamshire. The tax is being paid by the charitable trust that owns and manages the property.
Prescott responded in a written statement, saying the government had paid a discounted amount of council tax on the flat since 1997, continuing the arrangements in place for the previous Tory government. He said he was paying council tax on his home in his Hull constituency and on a rented flat in south London, which he had moved out of. He said he believed he was paying the tax on all three properties.
As he resided at Admiralty House, he paid extra income tax for the benefit in kind — equivalent to 10 per cent of his ministerial salary. He said that he thought the council tax was included.
Since 1997, the government had been paying council tax on the flat at a discounted rate on the basis that it was a second home. Prescott said he was not told about this. He added in the statement: “On reviewing the situation, I am now aware that an inadvertent error has occurred, based on a genuine misunderstanding.”
He has advised the concerned department to send all future bills to him personally.
Cabinet secretary Sir Gus O’Donnell told the Commons that he would ensure that ministers with official residences received clear guidance on council tax.
Spelman, in her reference, said while pensioners have been jailed for not paying their bills, it had taken Tory pressure to get the deputy prime minister to pay his full dues.
Under British rules, MPs are entitled to designate a London or constituency home as their primary, while ministers are required to live in London.
Posted
on : Fri, 13 Jan 2006 11:40 GMT | Politics News
By : Mark Richardson
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