Phil Wilson MP, Labour MP for Sedgefield, has today written to Sue Gray, Director General of the Propriety and Ethics team at the Cabinet Office, seeking clarification over the financial arrangements of the newly appointed Financial Secretary to the Treasury, Andrea Leadsom MP.

Full text of the letter below:

Dear Ms Gray

I am writing with regard to reports in The Independent regarding financial arrangements made over a number of years by the newly appointed Financial Secretary to the Treasury, Andrea Leadsom.The newspaper reports allegations that some of these arrangements are similar to those used for the purposes of tax avoidance. 

The Independent sets out the arrangements as follows:

“Tax affairs: What she did

2003 Sets up buy-to-let property company with  husband, invests £1m in houses in Oxford and Surrey.

2004 Charges over the property created in favour of Kleinwort Benson (Channel Islands) Ltd, based in Jersey, a tax haven.

2005 Transfers 24 per cent  of the shares in property company to two trusts set up for the benefit of her children.

2006 Another charge over a buy-to-let property created in favour of Kleinwort Benson (Channel Islands) Ltd.

2010 Becomes a Tory MP.

2013 Moves the offshore charges back to the UK branch of Kleinwort Benson.2014 Steps down as director of buy-to-let property company, becomes City minister in cabinet reshuffle.”

The Minister urgently needs to explain these arrangements and why they were put in place. Given the role Ms Leadsom plays in the regulatory regime for financial services and the Help to Buy scheme, it is important that her own financial arrangements are not only beyond reproach but are seen to be so.

The amount of uncollected tax has increased by £1bn this year and whilst George Osborne claims to be tackling tax avoidance his deal with Switzerland raised less than a third the amount he originally claimed it would.

So the public are rightly angry when the tax system is manipulated by those with the money to do so.

The public will want to be reassured that, in this case, not only has a legal process been followed throughout but that there has been reasonable and proper practice which can stand up to scrutiny. I am therefore seeking clarification from you as to whether these financial arrangements were disclosed in full to you at the time when the minister was appointed.Furthermore, I would seek reassurance that you, and the Prime Minister, are confident that these arrangements meet the highest standards of propriety and integrity in Government - such as the public has a right to expect from Ministers and public officials.

Yours Sincerely,​

Phil Wilson MP