Monday, 31 May 2010

Alexander In The Clear Over CGT Claims But Cabinet Appointment Provokes Controversy

Danny Alexander, the new Chief Secretary to the Treasury, appears to be in the clear over claims that he avoided paying Capital Gains Tax.

His new job is safe as he did not break any rules over the designation of his main home.

However, questions have been raised about David Cameron's decision to replace David Laws with Mr Alexander at the Treasury.

Unlike his predecessor, Mr Alexander does not have an economic or banking background.

More importantly, it is being suggested that the Prime Minister was obliged to appoint another Lib Dem MP as Mr Laws' successor, no matter how inexperienced. The objective of this was to keep the same balance of Conservatives and Liberal Democrats in the Cabinet and thus avoiding any upset to the equilibrium of the Coalition.

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