Lord Ashcroft should lose party role - Harman

Harriet Harman has called for Lord Ashcroft to be removed as Conservative Party deputy chairman as the row over the peer's tax status continues.

The peer's involvement with the Tories' election campaign "cast doubt" on David Cameron's judgement, she told the BBC.

Mr Cameron said he learnt last month that Lord Ashcroft did not pay full UK tax on his overseas earnings.

Shadow defence secretary Liam Fox said the degree of focus on the peer's financial affairs was "ridiculous".

'Question of judgment'

Amid Labour claims that Lord Ashcroft is helping to bankroll the Tories' fight in marginal seats at the election, Mr Fox said he had provided just 1% of its funds over the last year.

It had been thought that Lord Ashcroft had agreed in 2000 to pay full UK tax when he became a peer but it emerged recently that he had agreed to be a "long term resident", a lesser commitment.

He has agreed, in future, to be domiciled in the UK for tax purposes in line with proposed new laws requiring anyone in Parliament to be so.

It is amazing how this focus has been so intense on one donor Liam Fox

Ms Harman said Lord Ashcroft was a different case from so-called "non-dom" supporters of other parties because of undertakings he had given over his tax affairs when he was nominated for a peerage.

"The question of judgment here and the question about trust and credibility is about an assurance that was given to get Lord Ashcroft into the Lords," she told the Andrew Marr show.

"The real question is why hasn't David Cameron sacked Lord Ashcroft as deputy chairman if he has kept David Cameron in the dark for all these years?"

Ms Harman said she did not know whether Labour received money from "non-doms". She said was not her business to inquire into the tax affairs of individual party donors, only to make sure donors contributed legally.

Labour peer and donor Lord Paul has admitted he is a "non-dom" but that all his donations to Labour were made from UK-registered firms.

'Perspective'

For the Tories, Mr Fox said all parties received support from "non-doms" and the attention given to Lord Ashcroft was "ridiculous".

"To put this in perspective, Lord Ashcroft has given the Tory Party less than 1% of its total funding over the past year," Dr Fox said.

"It is amazing how this focus has been so intense on one donor."

Lib Dem leader Nick Clegg told Sky News he believed Lord Ashcroft's senior role within the Conservatives was "completely wrong" and insisted the Lib Dems had no "non-doms" sitting in Parliament.

On Thursday, the Electoral Commission said its investigation into donations by Bearwood Corporate Services, a firm belonging to Lord Ashcroft, to the Conservatives concluded they were legal.

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