A Liberal Democrat peer who owns two homes worth more than £2 million, is the first Parliamentarian known to use the wage subsidy scheme to pay himself.
The frontbench peer has furloughed himself despite having a £100,000 cash pot in his company and claiming the daily House of Lords allowance during lockdown, The Telegraph revealed on Wednesday 20th May 2020.
Lord Fox who owns two homes worth more than £2 million is the first known parliamentarian to use the Government’s wage subsidy scheme to pay himself leading to many claiming the Lord is taking advantage of the system.
The 62-year-old Liberal Democrat frontbench spokesman for business is the owner and sole employee of Vulpes Advisory, a “strategic communications” company.
MPs criticised the peers decision to double-dip into the taxpayers’ pocket and dismissed Lord Fox as “milking the taxpayers” by MPs who wanted to see him pay the money back.
The peer has chosen to take the £162 daily allowance for his work in the Lords, which is being conducted by Zoom during the lockdown.
Asked on Wednesday night whether having his private income paid by the state as well as taking the Lords stipend was “greedy”, Lord Fox said: “I don’t think conflating the two is even logical.
“It’s what many companies are doing, which is furloughing their employees. If HMRC had thought it was ineligible for me to have applied for that, then they would have said so.”
Accounts filed with Companies House show Lord Fox has access to more than £100,000 cash in his Vulpes bank account, however instead of using the money to tide the business over, he furloughed himself and has already received his first month’s wage subsidy, of about £1,000, from the Government.
Asked why he did not first use the £100,000, he said: “I’m hoping to tide the business over, I’m hoping to relaunch it properly when the scheme… when the virus lifts.”
Conservative MP Robert Halfon said: “It’s incredible that, when my residents in Harlow are struggling to keep a roof over their heads, this peer seems to want to milk the taxpayer at both ends, for every penny – both through the Lords allowance and the furlough scheme.
“The Chancellor needs to nip this in the bud and make sure this is not allowed. The least he could do is pay the furlough money back.”
Mr Halfon said the furlough scheme “was never meant to be for wealthy Lords”.
Sir Iain Duncan Smith said: “It’s a bit rum, furloughing yourself while being a legislator.”
The Liberal Democrat party declined to comment when asked if it is appropriate for its frontbench peer to be furloughing himself while claiming the Lords’ stipend.
Lord Fox has a five-bedroom house in Windsor, which he reportedly bought in 1995 for £280,000 and which is now estimated to be worth up to £1.89 million, he also owns a second home in east London.
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