Danny Alexander
Encyclopedia
Daniel Grian Alexander (born 15 May 1972) is a British Liberal Democrat
politician who has been Chief Secretary to the Treasury
since 2010. He has been the Member of Parliament
(MP) for the Inverness, Nairn, Badenoch & Strathspey
constituency since 2005.
In his first parliamentary term (2005-2010), Alexander was the Liberal Democrat Shadow Secretary for Work and Pensions
, the chief of staff to party leader, Nick Clegg
, and Chair of the Liberal Democrat Manifesto Group (2007-2010).
With the 2010 UK general election producing a hung parliament
, he played a key role in the four-man Liberal Democrat negotiating team and in the drawing up of the coalition document
for the new Coalition Government
with the Conservative Party
. Alexander was initially appointed Secretary of State for Scotland
, but at the end of May 2010, he was promoted to Chief Secretary to the Treasury
, following the resignation of David Laws
.
, Alexander lived on the island of Colonsay
as a boy before his family moved to Glengarry
. He was educated at Lochaber High School
, Fort William in the Scottish Highlands
, before reading Philosophy, Politics and Economics (PPE) at St Anne's College, Oxford.
, before spending eight years as the Director of Communications
at the European Movement
(1996-1999) and its successor organisation, the Britain in Europe
campaign (1999-2004).
In 2004 and 2005, he was the Head of Communications for the recently formed Cairngorms National Park Authority
.
in the 2005 UK general election
. He won the seat from David Stewart
, who was previously the Labour
MP for Inverness East, Nairn and Lochaber
, the basis of the new constituency. In August 2005 it was revealed that Christopher Haskins, Baron Haskins of Skidby
, a Labour peer who was a friend of Alexander, had donated £2,500 to Alexander's campaign; subsequently Haskins was expelled from the Labour party
for this action.
as a junior spokesman for Work and Pensions
, responsible for disability issues, where he contributed to debates on incapacity benefit
reform, the Child Support Agency
and the Turner Report
on future pension provision in the UK. He was also a member of the Scottish Affairs Select Committee (2005–2008).
In 2007, he was appointed as Liberal Democrat Shadow Secretary of State for Social Exclusion
for six months, before becoming Liberal Democrat Shadow Secretary of State for Work and Pensions
, holding the post until June 2008. He gave this post up to focus on his role as chief of staff
to the new party leader, Nick Clegg
, as well as his responsibility for leading the preparation of the party's election manifesto.
. As part of his role Alexander became the main author of the 2010 Liberal Democrat General Election manifesto and became a confidant of the leader. His close relationship with Clegg is thought to have been central to his subsequent meteoric rise. After the election Alexander became one to the key negotiators in the coalition discussions with the Conservatives and played a key role in the negotiating of the Coalition agreement alongside Oliver Letwin
.
, David Laws
and Andrew Stunell
that brokered the agreement to go into a governing coalition with the Conservatives. He was initially appointed Secretary of State for Scotland
for the coalition government, then was appointed Chief Secretary to the Treasury
after the resignation of David Laws
on 29 May 2010. He was appointed as a Privy Counsellor
on 13 May 2010.
as the Secretary of State for Scotland
making him one of five Liberal Democrats to serve in the cabinet. Speaking about his approach to the role Alexander said it was "about ensuring the UK government can also work together with the Scottish Government and the Scottish Parliament
" and added "we've got a programme for government
which we've set out which I think will deliver enormous benefits to the people of Scotland."
As part of his role Alexander was given responsibility to implement the recommendations of the Calman Commission which would give more fiscal powers to the Scottish Parliament, the promise to implement the proposals had formed part of the coalition agreement. (See also: Scotland Bill 2011
)
In his first official visit to Scotland in his new capacity Alexander was accompanied by the Prime Minister David Cameron
for a series of meetings with the First Minister Alex Salmond
. Cameron called for a fresh start in relations between the parliaments in Westminster
and Holyrood
and committed to appearing every year to answer questions at the Scottish Parliament. Speaking of the coalitions support for the Calman Commission findings Cameron said "I believe, and Danny believes, we should be pursuing the Calman agenda. That is a much greater degree of fiscal autonomy for Scotland
. I think that is right and that is what we want to put in place".
Alexander's tenure as Scottish Secretary was short lived however and just over two weeks from his appointment on 29 May 2010 he was promoted to the role of Chief Secretary to the Treasury
following the resignation of David Laws
. Michael Moore
, MP for Berwickshire, Roxburgh and Selkirk
, replaced Alexander as Secretary of State for Scotland
.
marked the continuation of a remarkable rise for Alexander who was now beginning his second cabinet post in under a month. The role effectively put Alexander in charge of the government's deficit reduction plan - a position of power which he particularly relished.
newspaper published front-page allegations that Alexander had exploited a legal loophole to avoid the payment of capital gains tax
on a property he had sold in 2007 alleging that he had profited from a "morally dubious" loophole to avoid paying capital gains tax. Just a few days earlier, the same newspaper had caused the resignation of Alexander's predecessor David Laws
after finding irregularities in his expenses claims. The paper suggested that "the fact that Mr Alexander has become the second Lib Dem to face questions about his finances within three days has focused attention on whether the party leadership has properly audited the financial activities of its senior figures".
Alexander had bought the property in question, a London flat, in 1999 and, after being elected to parliament for a Scottish constituency in 2005, designated the property as his "second home" whilst claiming that his first home was now in his constituency, the property was then sold in 2007 for a profit on which he paid no capital gains tax. As the property was the only one he owned however, up until 2006, HM Revenue and Customs rules meant that capital gains tax was not payable as should someone find a buyer for their home within three years the property qualifies for relief from [capital gains tax] as long as the property has been the only or main home at some point. Speaking at the time Alexander said "I have always listed London as my second home on the basis set out in the parliamentary rules as I spent more time in Scotland than I did in London." The Daily Telegraph itself claimed that "there is no suggestion that Mr Alexander has actually broken any tax laws". Indeed, a few years earlier the Daily Telegraph had given advice to its readers in a financial column to behave the same way Alexander had.
announced details of how they would conduct the governments spending review which would set spending limits for every government department for the period from 2011-12 up until 2014-15. As part of the review due to be announced on 20 October 2010 a star chamber was established chaired by both Osborne and Alexander designed to scrutinize the spending plans of each government department. Shortly after the announcement of how the review would take place Alexander announced on 17 June 2010 that £2billion worth of projects agreed by the previous Labour government would be cancelled. The projects included an £80million loan to Sheffield Forgemasters and the cancellation of a £25million visitors centre at Stonehenge
. Labour attacked the plans as an "attack on jobs" but Alexander countered by saying that the previous government had gone on a "pre-election spending spree in the full knowledge that the government had long since run out of money."
Following the announcement on the cancellation of projects Alexander worked closely with the Chancellor George Osborne
to produce an emergency budget on 22 June 2010 which announced a series of measures designed to reduce the United Kingdoms budget deficit. Measures included a rise in the rate of VAT
from 17.5% to 20% starting in 2011, a rise in Capital Gains Tax
from 18% to 28% and the introduction of a levy on the banks designed to raise £2billion a year. Defending the budget against allegations that it disproportionately hit the poor hardest Alexander described it as "fair" and "progressive" saying "this is a Budget that protects the most vulnerable - especially children in poverty and pensioners - while ensuring those with the broadest shoulders take the greatest share of the burden.".
Following the budget and in the intervening period until the spending review Alexander found himself at the heart of controversial spending decisions made by the government. A series of leaked letters from cabinet ministers showed that the spending review was causing strain within government departments including within the Department of Work and Pensions when a memo from Osborne to Iain Duncan Smith
suggested that deep cuts to the welfare budget had already been agreed, prompting accusations by Labour that the cuts were a "vicious" and an attack on the poorest in society. In response Alexander said "I am not going to comment on a leaked letter but what I will say is that with welfare spending making up nearly £200bn, of course it is something we have to look at in the context of the spending review." Further controversy came when the Treasury announced that the Ministry of Defence
would have to include the £20billion replacement of Trident
within their budget on top of potential cuts of potentially up to 10 and 20%. The Secretary of State for Defence himself Liam Fox
later wrote to David Cameron
in another leaked letter saying that cuts in defence spending would seriously damage troops morale. Ken Clarke however, the Secretary of State for Justice, said that he was "relishing" life back at the centre of government and said that the discussions on the spending review he had with Danny Alexander were "rather informal but quite intense and serious."
On 19 October 2010, the day before the spending review was announced in the House of Commons, Alexander was photographed reading a memo which showed that as a result of the cuts the government would be announcing up to 490,000 public service jobs could be lost. The figure contained within confidential briefing papers came from the Office for Budget Responsibility
(OBR). On 20 October 2010 the chancellor George Osborne
announced the findings of the review which included the claim from the OBR. Other key points from the review included an average 19% cut in departmental budgets, the desire to eliminate the structural deficit by 2015, £7bn extra in cuts to welfare spending and a move for the retirement age to be increased to 66 for both men and women by 2020. In a letter to Liberal Democrat members Alexander defended the cuts by saying "When we came into office, we inherited an economy that was on the brink. With the largest budget deficit in Europe and no plan for tackling it, Britain faced huge economic risks. These could only be dealt with by a clear plan to deal rapidly with the worst financial position this country has faced for generations." Despite the scale of the cuts announced Alexander, in his letter, went on to claim that the burden had been spread fairly by ensuring that key public services relied on by the most vulnerable in society had been protected. He emphasised the announcement of the 'fairness premium' designed to help the poorest children and noted that key transport projects had been given the go ahead as well as the announcement of a green investment bank.
. They have two children, Isabel, (b. 2007), and Isla, (b. 2010), and live in Aviemore
. He met his wife while working for the European Movement in London. She is a features editor for Psychologies
magazine.
In October 2010 Deputy Leader of the Labour Party Harriet Harman
criticised Alexander during her speech at the Labour Party's Scottish Conference making a personal insult referencing his red hair
. The incident generated controversial media attention and Alexander responded stating he was "proud" of his hair colour. Harman later apologised, admitting her conduct was "wrong".
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Liberal Democrats
The Liberal Democrats are a social liberal political party in the United Kingdom which supports constitutional and electoral reform, progressive taxation, wealth taxation, human rights laws, cultural liberalism, banking reform and civil liberties .The party was formed in 1988 by a merger of the...
politician who has been Chief Secretary to the Treasury
Chief Secretary to the Treasury
The Chief Secretary to the Treasury is the third most senior ministerial position in HM Treasury, after the Prime Minister and the Chancellor of the Exchequer . In recent years, the office holder has usually been given a junior position in the British Cabinet...
since 2010. He has been the Member of Parliament
Member of Parliament
A Member of Parliament is a representative of the voters to a :parliament. In many countries with bicameral parliaments, the term applies specifically to members of the lower house, as upper houses often have a different title, such as senate, and thus also have different titles for its members,...
(MP) for the Inverness, Nairn, Badenoch & Strathspey
Inverness, Nairn, Badenoch and Strathspey (UK Parliament constituency)
Inverness, Nairn, Badenoch and Strathspey is a constituency of the House of Commons of the Parliament of the United Kingdom . It elects one Member of Parliament by the first past the post system of election....
constituency since 2005.
In his first parliamentary term (2005-2010), Alexander was the Liberal Democrat Shadow Secretary for Work and Pensions
Department for Work and Pensions
The Department for Work and Pensions is the largest government department in the United Kingdom, created on June 8, 2001 from the merger of the employment part of the Department for Education and Employment and the Department of Social Security and headed by the Secretary of State for Work and...
, the chief of staff to party leader, Nick Clegg
Nick Clegg
Nicholas William Peter "Nick" Clegg is a British Liberal Democrat politician who is currently the Deputy Prime Minister, Lord President of the Council and Minister for Constitutional and Political Reform in the coalition government of which David Cameron is the Prime Minister...
, and Chair of the Liberal Democrat Manifesto Group (2007-2010).
With the 2010 UK general election producing a hung parliament
Hung parliament
In a two-party parliamentary system of government, a hung parliament occurs when neither major political party has an absolute majority of seats in the parliament . It is also less commonly known as a balanced parliament or a legislature under no overall control...
, he played a key role in the four-man Liberal Democrat negotiating team and in the drawing up of the coalition document
Conservative – Liberal Democrat Coalition Agreement
The Conservative – Liberal Democrat Coalition Agreement was a policy document drawn up following the 2010 general election in the United Kingdom...
for the new Coalition Government
United Kingdom coalition government (2010–present)
The ConservativeLiberal Democrat coalition is the present Government of the United Kingdom, formed after the 2010 general election. The Conservative Party and the Liberal Democrats entered into discussions which culminated in the 2010 coalition agreement, setting out a programme for government...
with the Conservative Party
Conservative Party (UK)
The Conservative Party, formally the Conservative and Unionist Party, is a centre-right political party in the United Kingdom that adheres to the philosophies of conservatism and British unionism. It is the largest political party in the UK, and is currently the largest single party in the House...
. Alexander was initially appointed Secretary of State for Scotland
Secretary of State for Scotland
The Secretary of State for Scotland is the principal minister of Her Majesty's Government in the United Kingdom with responsibilities for Scotland. He heads the Scotland Office , a government department based in London and Edinburgh. The post was created soon after the Union of the Crowns, but was...
, but at the end of May 2010, he was promoted to Chief Secretary to the Treasury
Chief Secretary to the Treasury
The Chief Secretary to the Treasury is the third most senior ministerial position in HM Treasury, after the Prime Minister and the Chancellor of the Exchequer . In recent years, the office holder has usually been given a junior position in the British Cabinet...
, following the resignation of David Laws
David Laws
David Anthony Laws is a British politician. He is Liberal Democrat Member of Parliament for Yeovil and former Chief Secretary to the Treasury....
.
Early life and education
Born in EdinburghEdinburgh
Edinburgh is the capital city of Scotland, the second largest city in Scotland, and the eighth most populous in the United Kingdom. The City of Edinburgh Council governs one of Scotland's 32 local government council areas. The council area includes urban Edinburgh and a rural area...
, Alexander lived on the island of Colonsay
Colonsay
Colonsay is an island in the Scottish Inner Hebrides, located north of Islay and south of Mull and has an area of . It is the ancestral home of Clan Macfie and the Colonsay branch of Clan MacNeill. Aligned on a south-west to north-east axis, it measures in length and reaches at its widest...
as a boy before his family moved to Glengarry
Glengarry
The glengarry bonnet is a traditional boat-shaped hat without a peak made of thick-milled woollen material with a toorie on top, a rosette cockade on the left, and ribbons hanging down behind...
. He was educated at Lochaber High School
Lochaber High School
Lochaber High School is a six year comprehensive secondary school located in the town of Fort William, Lochaber in the Highland region of Scotland.-Admissions:The current Head Teacher is Mr J Sutherland. It is situated off the A830...
, Fort William in the Scottish Highlands
Scottish Highlands
The Highlands is an historic region of Scotland. The area is sometimes referred to as the "Scottish Highlands". It was culturally distinguishable from the Lowlands from the later Middle Ages into the modern period, when Lowland Scots replaced Scottish Gaelic throughout most of the Lowlands...
, before reading Philosophy, Politics and Economics (PPE) at St Anne's College, Oxford.
Early career
In 1993 and 1994, Alexander worked as a press officer with the Scottish Liberal DemocratsScottish Liberal Democrats
The Scottish Liberal Democrats are one of the three state parties within the federal Liberal Democrats; the others being the Welsh Liberal Democrats and the Liberal Democrats in England...
, before spending eight years as the Director of Communications
Director of Communications
Director of communications is a position in both the private and public sectors. A director of communications is responsible for managing and directing an organization's internal and external communications...
at the European Movement
European Movement UK
The European Movement UK is an independent pressure group in the United Kingdom which campaigns in support of greater European integration and for reform of the European Union. It is part of the European Movement International....
(1996-1999) and its successor organisation, the Britain in Europe
Britain in Europe
Prior to August 2005, Britain in Europe was the main British pro-European pressure group. Despite connections to Labour and the Liberal Democrats, it was a cross-party organisation with supporters from many different political backgrounds...
campaign (1999-2004).
In 2004 and 2005, he was the Head of Communications for the recently formed Cairngorms National Park Authority
Cairngorms National Park
The Cairngorms National Park is a national park in north east Scotland, established in 2003. It was the second of two national parks established by the Scottish Parliament, after Loch Lomond and the Trossachs National Park, set up in 2002. The park covers the Cairngorms range of mountains, and...
.
Member of Parliament
Alexander was elected to the newly formed constituency of Inverness, Nairn, Badenoch and StrathspeyInverness, Nairn, Badenoch and Strathspey (UK Parliament constituency)
Inverness, Nairn, Badenoch and Strathspey is a constituency of the House of Commons of the Parliament of the United Kingdom . It elects one Member of Parliament by the first past the post system of election....
in the 2005 UK general election
United Kingdom general election, 2005
The United Kingdom general election of 2005 was held on Thursday, 5 May 2005 to elect 646 members to the British House of Commons. The Labour Party under Tony Blair won its third consecutive victory, but with a majority of 66, reduced from 160....
. He won the seat from David Stewart
David John Stewart
David John Stewart is a Scottish politician. Prior to his election in 1997, he had been a leading member of Labour’s Scottish Executive. He is married to Linda Stewart, who also stood in the 2007 Scottish elections as Labour Party candidate for the Inverness East, Nairn and Lochaber Constituency...
, who was previously the Labour
Scottish Labour Party
The Scottish Labour Party is the section of the British Labour Party which operates in Scotland....
MP for Inverness East, Nairn and Lochaber
Inverness East, Nairn and Lochaber (UK Parliament constituency)
Inverness East, Nairn and Lochaber, was a county constituency of the House of Commons of the Parliament of the United Kingdom from 1997 to 2005...
, the basis of the new constituency. In August 2005 it was revealed that Christopher Haskins, Baron Haskins of Skidby
Christopher Haskins, Baron Haskins of Skidby
Christopher Robin Haskins, Baron Haskins , is a British/Irish businessman, and former member of the British Labour Party....
, a Labour peer who was a friend of Alexander, had donated £2,500 to Alexander's campaign; subsequently Haskins was expelled from the Labour party
Labour Party (UK)
The Labour Party is a centre-left democratic socialist party in the United Kingdom. It surpassed the Liberal Party in general elections during the early 1920s, forming minority governments under Ramsay MacDonald in 1924 and 1929-1931. The party was in a wartime coalition from 1940 to 1945, after...
for this action.
Front bench spokesman
At the start of the new parliament in 2005, Alexander was appointed by party leader Charles KennedyCharles Kennedy
Charles Peter Kennedy is a British Liberal Democrat politician, who led the Liberal Democrats from 9 August 1999 until 7 January 2006 and is currently a Member of Parliament for the Ross, Skye and Lochaber constituency....
as a junior spokesman for Work and Pensions
Department for Work and Pensions
The Department for Work and Pensions is the largest government department in the United Kingdom, created on June 8, 2001 from the merger of the employment part of the Department for Education and Employment and the Department of Social Security and headed by the Secretary of State for Work and...
, responsible for disability issues, where he contributed to debates on incapacity benefit
Incapacity benefit
Incapacity Benefit is a United Kingdom state benefit that is paid to those below the State Pension age who cannot work because of illness or disability and have made National Insurance contributions. It is administered by Jobcentre Plus...
reform, the Child Support Agency
Child Support Agency
The Child Support Agency is a delivery arm of the Child Maintenance and Enforcement Commission in Great Britain and the Department for Social Development in Northern Ireland...
and the Turner Report
Pensions Commission
The Pensions Commission was a non-departmental public body in the United Kingdom, reporting to the Secretary of State for Work and Pensions, set up to keep under review the regime for UK private pensions and long-term savings....
on future pension provision in the UK. He was also a member of the Scottish Affairs Select Committee (2005–2008).
In 2007, he was appointed as Liberal Democrat Shadow Secretary of State for Social Exclusion
Social exclusion
Social exclusion is a concept used in many parts of the world to characterise contemporary forms of social disadvantage. Dr. Lynn Todman, director of the Institute on Social Exclusion at the Adler School of Professional Psychology, suggests that social exclusion refers to processes in which...
for six months, before becoming Liberal Democrat Shadow Secretary of State for Work and Pensions
Secretary of State for Work and Pensions
The Secretary of State for Work and Pensions is a post in the British Cabinet, responsible for the Department for Work and Pensions. It was created on 8 June 2001 by the merger of the Employment part of the Department for Education and Employment and the Department of Social Security.The Ministry...
, holding the post until June 2008. He gave this post up to focus on his role as chief of staff
Chief of Staff
The title, chief of staff, identifies the leader of a complex organization, institution, or body of persons and it also may identify a Principal Staff Officer , who is the coordinator of the supporting staff or a primary aide to an important individual, such as a president.In general, a chief of...
to the new party leader, Nick Clegg
Nick Clegg
Nicholas William Peter "Nick" Clegg is a British Liberal Democrat politician who is currently the Deputy Prime Minister, Lord President of the Council and Minister for Constitutional and Political Reform in the coalition government of which David Cameron is the Prime Minister...
, as well as his responsibility for leading the preparation of the party's election manifesto.
Chief of Staff
In June 2008 Alexander gave up his role shadowing the Work and Pensions brief to become Chief of Staff to the Leader of the Liberal Democrats, Nick CleggNick Clegg
Nicholas William Peter "Nick" Clegg is a British Liberal Democrat politician who is currently the Deputy Prime Minister, Lord President of the Council and Minister for Constitutional and Political Reform in the coalition government of which David Cameron is the Prime Minister...
. As part of his role Alexander became the main author of the 2010 Liberal Democrat General Election manifesto and became a confidant of the leader. His close relationship with Clegg is thought to have been central to his subsequent meteoric rise. After the election Alexander became one to the key negotiators in the coalition discussions with the Conservatives and played a key role in the negotiating of the Coalition agreement alongside Oliver Letwin
Oliver Letwin
Oliver Letwin MP FRSA is a British politician. A member of the Conservative Party, he is currently the Minister of State at the Cabinet Office, and a Member of Parliament representing the constituency of West Dorset...
.
Coalition Government
Following the 2010 general election, Alexander was part of the Liberal Democrats key negotiating team alongside Chris HuhneChris Huhne
Christopher Murray Paul-Huhne, generally known as Chris Huhne is a British politician and cabinet minister, who is the current Liberal Democrat Member of Parliament for the Eastleigh constituency in Hampshire...
, David Laws
David Laws
David Anthony Laws is a British politician. He is Liberal Democrat Member of Parliament for Yeovil and former Chief Secretary to the Treasury....
and Andrew Stunell
Andrew Stunell
Robert Andrew Stunell, known as Andrew Stunell, OBE is a Liberal Democrat politician in the United Kingdom. He is the Member of Parliament for Hazel Grove, and was first elected at the 1997 general election...
that brokered the agreement to go into a governing coalition with the Conservatives. He was initially appointed Secretary of State for Scotland
Secretary of State for Scotland
The Secretary of State for Scotland is the principal minister of Her Majesty's Government in the United Kingdom with responsibilities for Scotland. He heads the Scotland Office , a government department based in London and Edinburgh. The post was created soon after the Union of the Crowns, but was...
for the coalition government, then was appointed Chief Secretary to the Treasury
Chief Secretary to the Treasury
The Chief Secretary to the Treasury is the third most senior ministerial position in HM Treasury, after the Prime Minister and the Chancellor of the Exchequer . In recent years, the office holder has usually been given a junior position in the British Cabinet...
after the resignation of David Laws
David Laws
David Anthony Laws is a British politician. He is Liberal Democrat Member of Parliament for Yeovil and former Chief Secretary to the Treasury....
on 29 May 2010. He was appointed as a Privy Counsellor
Privy Council of the United Kingdom
Her Majesty's Most Honourable Privy Council, usually known simply as the Privy Council, is a formal body of advisers to the Sovereign in the United Kingdom...
on 13 May 2010.
Secretary of State for Scotland
Following the negotiations between the Conservatives and Liberal Democrats, Alexander was appointed to the cabinetCabinet of the United Kingdom
The Cabinet of the United Kingdom is the collective decision-making body of Her Majesty's Government in the United Kingdom, composed of the Prime Minister and some 22 Cabinet Ministers, the most senior of the government ministers....
as the Secretary of State for Scotland
Secretary of State for Scotland
The Secretary of State for Scotland is the principal minister of Her Majesty's Government in the United Kingdom with responsibilities for Scotland. He heads the Scotland Office , a government department based in London and Edinburgh. The post was created soon after the Union of the Crowns, but was...
making him one of five Liberal Democrats to serve in the cabinet. Speaking about his approach to the role Alexander said it was "about ensuring the UK government can also work together with the Scottish Government and the Scottish Parliament
Scottish Parliament
The Scottish Parliament is the devolved national, unicameral legislature of Scotland, located in the Holyrood area of the capital, Edinburgh. The Parliament, informally referred to as "Holyrood", is a democratically elected body comprising 129 members known as Members of the Scottish Parliament...
" and added "we've got a programme for government
Legislative programme
A legislative programme is a list of bills which the United Kingdom government intends to introduce to Parliament during a parliamentary session. The programme is an outline of the Government's intended direction and emphases in the coming year...
which we've set out which I think will deliver enormous benefits to the people of Scotland."
As part of his role Alexander was given responsibility to implement the recommendations of the Calman Commission which would give more fiscal powers to the Scottish Parliament, the promise to implement the proposals had formed part of the coalition agreement. (See also: Scotland Bill 2011
Scotland Bill 2011
The Scotland Bill is a bill proposed by the Conservative-Liberal Democrat coalition UK Government, with broad support from the opposition Labour Party, setting out amendments to the Scotland Act 1998, with the aim of devolving further powers to Scotland....
)
In his first official visit to Scotland in his new capacity Alexander was accompanied by the Prime Minister David Cameron
David Cameron
David William Donald Cameron is the current Prime Minister of the United Kingdom, First Lord of the Treasury, Minister for the Civil Service and Leader of the Conservative Party. Cameron represents Witney as its Member of Parliament ....
for a series of meetings with the First Minister Alex Salmond
Alex Salmond
Alexander Elliot Anderson "Alex" Salmond MSP is a Scottish politician and current First Minister of Scotland. He became Scotland's fourth First Minister in May 2007. He is the Leader of the Scottish National Party , having served as Member of the Scottish Parliament for Gordon...
. Cameron called for a fresh start in relations between the parliaments in Westminster
Westminster
Westminster is an area of central London, within the City of Westminster, England. It lies on the north bank of the River Thames, southwest of the City of London and southwest of Charing Cross...
and Holyrood
Holyrood, Edinburgh
Holyrood is an area in Edinburgh, the capital of Scotland. Lying east of the city centre, at the end of the Royal Mile, Holyrood was once in the separate burgh of Canongate before the expansion of Edinburgh in 1856...
and committed to appearing every year to answer questions at the Scottish Parliament. Speaking of the coalitions support for the Calman Commission findings Cameron said "I believe, and Danny believes, we should be pursuing the Calman agenda. That is a much greater degree of fiscal autonomy for Scotland
Fiscal autonomy for Scotland
Full fiscal autonomy, sometimes referred to as devolution max, devo-max or fiscal federalism, has come to be used to describe a situation where instead of receiving a block grant from the UK Exchequer as at present, the Scottish Parliament would receive all taxation levied in Scotland and would...
. I think that is right and that is what we want to put in place".
Alexander's tenure as Scottish Secretary was short lived however and just over two weeks from his appointment on 29 May 2010 he was promoted to the role of Chief Secretary to the Treasury
Chief Secretary to the Treasury
The Chief Secretary to the Treasury is the third most senior ministerial position in HM Treasury, after the Prime Minister and the Chancellor of the Exchequer . In recent years, the office holder has usually been given a junior position in the British Cabinet...
following the resignation of David Laws
David Laws
David Anthony Laws is a British politician. He is Liberal Democrat Member of Parliament for Yeovil and former Chief Secretary to the Treasury....
. Michael Moore
Michael Moore (UK politician)
Michael Kevin Moore is a British Liberal Democrat politician, currently the Secretary of State for Scotland in the UK coalition government, and the Member of Parliament for the constituency of Berwickshire, Roxburgh and Selkirk....
, MP for Berwickshire, Roxburgh and Selkirk
Berwickshire, Roxburgh and Selkirk (UK Parliament constituency)
Berwickshire, Roxburgh and Selkirk is a constituency of the British House of Commons, located in the south of Scotland within the Scottish Borders council area...
, replaced Alexander as Secretary of State for Scotland
Secretary of State for Scotland
The Secretary of State for Scotland is the principal minister of Her Majesty's Government in the United Kingdom with responsibilities for Scotland. He heads the Scotland Office , a government department based in London and Edinburgh. The post was created soon after the Union of the Crowns, but was...
.
Chief Secretary to the Treasury
The move to the Treasury and the effective number two position to chancellor George OsborneGeorge Osborne
George Gideon Oliver Osborne, MP is a British Conservative politician. He is the Chancellor of the Exchequer of the United Kingdom, a role to which he was appointed in May 2010, and has been the Member of Parliament for Tatton since 2001.Osborne is part of the old Anglo-Irish aristocracy, known in...
marked the continuation of a remarkable rise for Alexander who was now beginning his second cabinet post in under a month. The role effectively put Alexander in charge of the government's deficit reduction plan - a position of power which he particularly relished.
Capital gains tax controversy
Two days after being appointed to his new position, the Daily TelegraphThe Daily Telegraph
The Daily Telegraph is a daily morning broadsheet newspaper distributed throughout the United Kingdom and internationally. The newspaper was founded by Arthur B...
newspaper published front-page allegations that Alexander had exploited a legal loophole to avoid the payment of capital gains tax
Capital gains tax
A capital gains tax is a tax charged on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property...
on a property he had sold in 2007 alleging that he had profited from a "morally dubious" loophole to avoid paying capital gains tax. Just a few days earlier, the same newspaper had caused the resignation of Alexander's predecessor David Laws
David Laws
David Anthony Laws is a British politician. He is Liberal Democrat Member of Parliament for Yeovil and former Chief Secretary to the Treasury....
after finding irregularities in his expenses claims. The paper suggested that "the fact that Mr Alexander has become the second Lib Dem to face questions about his finances within three days has focused attention on whether the party leadership has properly audited the financial activities of its senior figures".
Alexander had bought the property in question, a London flat, in 1999 and, after being elected to parliament for a Scottish constituency in 2005, designated the property as his "second home" whilst claiming that his first home was now in his constituency, the property was then sold in 2007 for a profit on which he paid no capital gains tax. As the property was the only one he owned however, up until 2006, HM Revenue and Customs rules meant that capital gains tax was not payable as should someone find a buyer for their home within three years the property qualifies for relief from [capital gains tax] as long as the property has been the only or main home at some point. Speaking at the time Alexander said "I have always listed London as my second home on the basis set out in the parliamentary rules as I spent more time in Scotland than I did in London." The Daily Telegraph itself claimed that "there is no suggestion that Mr Alexander has actually broken any tax laws". Indeed, a few years earlier the Daily Telegraph had given advice to its readers in a financial column to behave the same way Alexander had.
2010 Spending Review
On 8 June 2010 Alexander and the Chancellor George OsborneGeorge Osborne
George Gideon Oliver Osborne, MP is a British Conservative politician. He is the Chancellor of the Exchequer of the United Kingdom, a role to which he was appointed in May 2010, and has been the Member of Parliament for Tatton since 2001.Osborne is part of the old Anglo-Irish aristocracy, known in...
announced details of how they would conduct the governments spending review which would set spending limits for every government department for the period from 2011-12 up until 2014-15. As part of the review due to be announced on 20 October 2010 a star chamber was established chaired by both Osborne and Alexander designed to scrutinize the spending plans of each government department. Shortly after the announcement of how the review would take place Alexander announced on 17 June 2010 that £2billion worth of projects agreed by the previous Labour government would be cancelled. The projects included an £80million loan to Sheffield Forgemasters and the cancellation of a £25million visitors centre at Stonehenge
Stonehenge
Stonehenge is a prehistoric monument located in the English county of Wiltshire, about west of Amesbury and north of Salisbury. One of the most famous sites in the world, Stonehenge is composed of a circular setting of large standing stones set within earthworks...
. Labour attacked the plans as an "attack on jobs" but Alexander countered by saying that the previous government had gone on a "pre-election spending spree in the full knowledge that the government had long since run out of money."
Following the announcement on the cancellation of projects Alexander worked closely with the Chancellor George Osborne
George Osborne
George Gideon Oliver Osborne, MP is a British Conservative politician. He is the Chancellor of the Exchequer of the United Kingdom, a role to which he was appointed in May 2010, and has been the Member of Parliament for Tatton since 2001.Osborne is part of the old Anglo-Irish aristocracy, known in...
to produce an emergency budget on 22 June 2010 which announced a series of measures designed to reduce the United Kingdoms budget deficit. Measures included a rise in the rate of VAT
Vat
Vat or VAT may refer to:* A type of container such as a barrel, storage tank, or tub, often constructed of welded sheet stainless steel, and used for holding, storing, and processing liquids such as milk, wine, and beer...
from 17.5% to 20% starting in 2011, a rise in Capital Gains Tax
Capital gains tax
A capital gains tax is a tax charged on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property...
from 18% to 28% and the introduction of a levy on the banks designed to raise £2billion a year. Defending the budget against allegations that it disproportionately hit the poor hardest Alexander described it as "fair" and "progressive" saying "this is a Budget that protects the most vulnerable - especially children in poverty and pensioners - while ensuring those with the broadest shoulders take the greatest share of the burden.".
Following the budget and in the intervening period until the spending review Alexander found himself at the heart of controversial spending decisions made by the government. A series of leaked letters from cabinet ministers showed that the spending review was causing strain within government departments including within the Department of Work and Pensions when a memo from Osborne to Iain Duncan Smith
Iain Duncan Smith
George Iain Duncan Smith is a British Conservative politician. He is currently the Secretary of State for Work and Pensions and was previously leader of the Conservative Party from September 2001 to October 2003...
suggested that deep cuts to the welfare budget had already been agreed, prompting accusations by Labour that the cuts were a "vicious" and an attack on the poorest in society. In response Alexander said "I am not going to comment on a leaked letter but what I will say is that with welfare spending making up nearly £200bn, of course it is something we have to look at in the context of the spending review." Further controversy came when the Treasury announced that the Ministry of Defence
Ministry of Defence (United Kingdom)
The Ministry of Defence is the United Kingdom government department responsible for implementation of government defence policy and is the headquarters of the British Armed Forces....
would have to include the £20billion replacement of Trident
UK Trident programme
The UK Trident programme is the United Kingdom's Trident missile-based nuclear weapons programme. Under the programme, the Royal Navy operates 58 nuclear-armed Trident II D-5 submarine-launched ballistic missiles and around 200 nuclear warheads on 4 Vanguard-class ballistic missile submarines from...
within their budget on top of potential cuts of potentially up to 10 and 20%. The Secretary of State for Defence himself Liam Fox
Liam Fox
Liam Fox MP is a British Conservative politician, Member of Parliament for North Somerset, and former Secretary of State for Defence....
later wrote to David Cameron
David Cameron
David William Donald Cameron is the current Prime Minister of the United Kingdom, First Lord of the Treasury, Minister for the Civil Service and Leader of the Conservative Party. Cameron represents Witney as its Member of Parliament ....
in another leaked letter saying that cuts in defence spending would seriously damage troops morale. Ken Clarke however, the Secretary of State for Justice, said that he was "relishing" life back at the centre of government and said that the discussions on the spending review he had with Danny Alexander were "rather informal but quite intense and serious."
On 19 October 2010, the day before the spending review was announced in the House of Commons, Alexander was photographed reading a memo which showed that as a result of the cuts the government would be announcing up to 490,000 public service jobs could be lost. The figure contained within confidential briefing papers came from the Office for Budget Responsibility
Office for Budget Responsibility
The Office for Budget Responsibility provides independent economic forecasts as background to the preparation of the UK budget. It was formally created in May 2010 following the general election, although it had previously been constituted in shadow form by the Conservative party opposition in...
(OBR). On 20 October 2010 the chancellor George Osborne
George Osborne
George Gideon Oliver Osborne, MP is a British Conservative politician. He is the Chancellor of the Exchequer of the United Kingdom, a role to which he was appointed in May 2010, and has been the Member of Parliament for Tatton since 2001.Osborne is part of the old Anglo-Irish aristocracy, known in...
announced the findings of the review which included the claim from the OBR. Other key points from the review included an average 19% cut in departmental budgets, the desire to eliminate the structural deficit by 2015, £7bn extra in cuts to welfare spending and a move for the retirement age to be increased to 66 for both men and women by 2020. In a letter to Liberal Democrat members Alexander defended the cuts by saying "When we came into office, we inherited an economy that was on the brink. With the largest budget deficit in Europe and no plan for tackling it, Britain faced huge economic risks. These could only be dealt with by a clear plan to deal rapidly with the worst financial position this country has faced for generations." Despite the scale of the cuts announced Alexander, in his letter, went on to claim that the burden had been spread fairly by ensuring that key public services relied on by the most vulnerable in society had been protected. He emphasised the announcement of the 'fairness premium' designed to help the poorest children and noted that key transport projects had been given the go ahead as well as the announcement of a green investment bank.
North Sea Oil Windfall Tax
Alexander caused controversy after giving a speech to a group of businessmen that a £10 billion windfall tax on North Sea oil revenue in the 2011 budget was his idea. The move has been estimated to cost up to 40,000 jobs and have repercussions for the economy of Aberdeen.Personal life
Alexander married Rebecca Hoar in July 2005 in ChippenhamChippenham
Chippenham may be:* Chippenham, Wiltshire* Chippenham * Chippenham, Cambridgeshire-See also:* Virginia State Route 150, also known as Chippenham Parkway, USA* Cippenham, Berkshire, UK...
. They have two children, Isabel, (b. 2007), and Isla, (b. 2010), and live in Aviemore
Aviemore
Aviemore is a town and tourist resort, situated within the Cairngorms National Park in the Highlands of Scotland. It is in the Badenoch and Strathspey committee area, within the Highland council area. The town is popular for skiing and other winter sports, and for hill-walking in the Cairngorm...
. He met his wife while working for the European Movement in London. She is a features editor for Psychologies
Psychologies
Psychologies is a monthly women's magazine dedicated to personal development and well-being.- History :Psychologies was founded in 1970 by Agnès et Bernard Loiseau. Sales rose to 70,000 copies...
magazine.
In October 2010 Deputy Leader of the Labour Party Harriet Harman
Harriet Harman
Harriet Ruth Harman QC is a British Labour Party politician, who is the Member of Parliament for Camberwell and Peckham, and was MP for the predecessorPeckham constituency from 1982 to 1997...
criticised Alexander during her speech at the Labour Party's Scottish Conference making a personal insult referencing his red hair
Red hair
Red hair occurs on approximately 1–2% of the human population. It occurs more frequently in people of northern or western European ancestry, and less frequently in other populations...
. The incident generated controversial media attention and Alexander responded stating he was "proud" of his hair colour. Harman later apologised, admitting her conduct was "wrong".
External links
- Profile at HM TreasuryHM TreasuryHM Treasury, in full Her Majesty's Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing the British government's public finance policy and economic policy...
- Danny Alexander MP official constituency site
- Danny Alexander MP Liberal Democrats profile
- Danny Alexander MP Scottish Liberal Democrats profile
- Danny Alexander MP Highland Liberal Democrats profile
- Danny Alexander Profile at New StatesmanNew StatesmanNew Statesman is a British centre-left political and cultural magazine published weekly in London. Founded in 1913, and connected with leading members of the Fabian Society, the magazine reached a circulation peak in the late 1960s....
Your Democracy - Speech at LibDem 2008 conference
- Danny Alexander - Profile Ethos Journal profile of Danny Alexander
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