David Cameron: 'Wealth isn't a dirty word' ... PM fights back in storm over his family taxes

Today the PM was expected to unveil new laws against companies that fail to stop evasion, while adding: “But as we do so, we should differentiate between schemes designed to artificially reduce tax and those that are encouraging investment. We must defend the right of every citizen to make money lawfully. This is a Government that believes in aspiration and wealth creation. These are not somehow dirty words.

“They are the engines of growth and prosperity in our country — and we must always support those who want to own shares and make investments to support their families.”

The Prime Minister’s spokeswoman said: “When it comes to tax returns, the PM has made clear he is willing to be transparent. It’s right for potential prime ministers also to do so. When we think who is in charge of the nation’s finances, the PM thinks chancellors and shadow chancellors should too.”

This stance would mean Mr Johnson and other senior politicians would be expected to publish returns if they made a bid to succeed Mr Cameron. But No 10 stopped short of calling for other ministers and MPs to publish information. No 10 also said Mr Cameron had given “unprecedented detail” about his tax affairs, and batted away questions about why he had not published his full tax return.

Shadow chancellor John McDonnell said the “problem” with Mr Cameron not publishing details of other share investments was that it “all keeps coming back” with more questions. Mr McDonnell said there would be a debate about whether all MPs should publish their tax returns — a move he backed.

Justice Secretary Michael Gove leaped to Mr Cameron’s defence, saying: “I think he has behaved with integrity.” A HMRC spokesman said Mr Troup had confirmed he never had dealings with Mossack Fonseca, the firm at the centre of the “Panama Papers”, and was unaware of Mossack until recently.

None of the individuals or organisations named so far were clients that he advised when he worked in the private sector, the spokesman added, while “Edward Troup’s role in HMRC has never involved responsibility for operational activities or direct dealings with companies on their tax affairs”.

Conservative backbencher Jacob Rees-Mogg, a member of the Commons Treasury committee, told BBC radio: “I think ... it’s very clear that all MPs within a year or two will be publishing their returns, and I’m not going to be the one holding out against that.

“I think it is a pity that we have lost privacy, but to some extent it is politicians’ fault because we lost the trust of the public over the expenses affair.”

He said overseas investment funds did not give tax advantages to UK residents, pointing out that he had run and set up such financial schemes himself.

Mark Field, Tory MP for Cities of London and Westminster, warned that if MPs were made to publish their returns it could become a “slippery slope” for other public figures to have to do so. He favoured a new section in the Commons Register of Members’ Interests for “unearned income” such as interest on investments and inheritances.