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From The Sunday Times

February 14, 2010

Conservatives' Lord Ashcroft strikes back at 'smears'

Lord Ashcroft continues to maintain his silence regarding his tax status

Jonathan Oliver, Political Editor

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Lord Ashcroft, the billionaire Tory donor, last night attempted to turn the tables on his critics by releasing private Labour memos aimed at undermining his reputation.

Ashcroft, who is also a deputy chairman of the Conservative party, has used data protection laws to obtain 3,700 pages of documents relating to him held by the Labour party.

The peer, who has connections with the Central American tax haven of Belize, has been at the centre of controversy because of his refusal to state whether he pays full UK tax.

He has given an estimated £4.5m to the Tories since David Cameron became leader and plays a key role in channelling cash to candidates in marginal seats.

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One of Labour’s main methods of raising the profile of the Ashcroft debate has been to prepare cabinet ministers to issue letters challenging Cameron to come clean about Ashcroft’s tax status.

One memo dated October 31, 2009 reveals what Labour officials thought of these stunts: “When we do these stupid letters don’t we usually fax it to the Tories . . ?”

Another Labour email from December 2008 shows how party officials used backbench MPs to attack Ashcroft.

Discussing how to respond to a story about a failed Tory internet initiative, one staffer suggested Stephen Pound, the MP for Ealing North, should issue a statement.

The party official asks: “Is it worth getting Steve Pound to say something amusing about this? ‘Dave seems to be blowing millions of pounds of Lord Ashcroft’s money to try and appeal to young people but he’s only managed to find one friend’.”

The documents also show how Labour party officials closely monitored Ashcroft’s appearances at Conservative conferences.

“Just spoke to a hack who said Ashcroft didn’t turn up to his fringe meeting, (lucky didn’t go, really) . . .” says one memo dated September 29, 2008. It was written by Labour’s official observer at the event.

“Is it worth getting a quote round the attack list saying something like ‘Lord Ashcroft won’t even answer the questions of a Tory audience’?

“Could do from Hoon [Geoff Hoon, the former defence secretary], or (if that’s too senior) Steve McCabe [a Labour whip].”

The documents give a revealing insight into Labour’s media strategy. Discussing news of a row in Belize involving Ashcroft, one official writes on August 27, 2009: “Think Guardian most likely to go for it as they are always interested in him and will like all the ‘screwing local people’ element of this?”

Another memo written two days later illustrates Labour’s eagerness to stoke up controversy. Following a newspaper story alleging a “missing” gift to the Conservatives from the businessman, an official writes: “How did we miss that?! But great story — we should dust off every Ashcroft story we’ve not been able to shift before.”

Fresh questions have been raised over Ashcroft because of a law set to come into force this summer that will in effect bar peers who are domiciled overseas from sitting in the Lords.

Last night Ashcroft maintained his silence on his tax status but indicated he was willing to pay full British tax if the proposed legislation is passed.

“These ridiculous documents reveal the deception that the Labour party is deploying in its attempt to attack me and, for all I know, to attack others similarly,” he said.

A Labour spokesman said: “We have always been completely upfront and open that we find the secrecy surrounding Lord Ashcroft deeply troubling.”