Archive for February 20, 2012

Interim Judgement

February 20, 2012

Starting a storm: The unfortunate (but wealthy) Mr Lester

Two weeks ago we had a sense that the unmasking of Ed Lester from the Student Loans Company as the sole employee of his own personal services company was going to lead to a bit of a public sector witch hunt and so it has proven.

But whilst the majority of the heat so far has been on the civil service and the QUANGO sector it was only a matter of time before Eric Pickles jumped into the fray. And whilst others had been pussy footing around the issue (after all, other ministers are meant to be defending their own departments) Mr Pickles has typically been able to come out with both guns blazing and a nifty soundbite.

Mr Pickles on Friday called for Local Authorities to target ‘town hall tax-dodgers’ arguing that:

Local people have a right to know whether town hall tax-dodgers are short-changing the public purse; whether bumper bonuses are being awarded to poorly performing workers; or whether pay is being hiked up for execs who’ve boomeranged from post to post.

I am actually quite sympathetic to Eric Pickles.

My first job in local government was on a team that involved about eight staff; of which I think five of them were interims and all of those were in some form of separate company which enabled them to pay less tax. It doesn’t take a rocket scientist to work out what happened next; within a year the two members of the team who were on the payroll had left to take interim roles elsewhere and had set up PSCs (or joined a different umbrella company which apparently did the same thing… Who said tax isn’t meant to be taxing?!?).

I also don’t really like the idea of any member of staff setting up arrangements that enable them to pay less tax than I do. It just feels wrong.

And yet and yet…

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