02/02/2012

Labour Question Tax Deal For Student Loans Chief

Labour's Shadow Exchequer Secretary has called for an investigation after reports emerged that the chief executive of the Student Loans Company was paid through a third party company.

On Thursday, the Government said the head of the Student Loans Company (SLC) will have tax and National Insurance payments deducted from his £182,000 pay package in future, after BBC's Newsnight reported its CEO, Ed Lester, was not added to the SLC payroll.

Responding, Owen Smith said: "The Government claims it is getting tough on tax avoidance and yet Ministers sanctioned a pay deal for this senior public servant which seems to have been designed solely to make it easy for him to avoid paying tax.

"This case raises serious questions over the credibility of this Government when it comes to getting people to pay their fair share of tax. We need a full investigation into this issue."

Meanwhile, the SLC released a statement, defending the pay arrangements they had with Mr Lester. The statement said: "He was offered this post after a solid performance as Interim CEO, where his leadership led to considerable improvement in the company's overall performance."

"SLC followed all government guidelines on the appointment and remuneration of the CEO.Mr. Lester's two year contract with the SLC officially started on 1st February 2011 and will end on 31st January 2013."

(DW/GK)

Related UK National News Stories
Click here for the latest headlines.

30 November 2010
Corporation Tax Reform To Create 'Competition'
The Government has published details of its Corporate Tax Reform programme consisting of a series of essential reforms designed to improve the UK's tax competitiveness. Measures include the introduction of new Controlled Foreign Company (CFC) rules and a commitment to introduce a Patent Box.
21 March 2007
Council tax report recommends changes
People living in the most expensive properties in England should pay more council tax, a report has recommended.
03 October 2006
Conservatives focus on families
The Conservatives have focused on the family on the third day of the party's conference in Bournemouth, with leader David Cameron suggesting that a Tory government would consider easing the tax burden on couples with children.
30 May 2014
More Fall Into Debt Following HMRC Overpayments
The number of issues reported to Citizens Advice of people falling into debt as a result of repaying overpaid tax credits increased by 14 per cent in the 2013/14 tax year. Tax Credit debts arise when HMRC over-estimates a person’s entitlement to financial support and ends up having to recoup overpayments.
06 April 2011
Government Tackle Tax Avoidance
David Gauke, Exchequer Secretary to the Treasury, has today announced a change in legislation to prevent tax avoidance. The measure will prevent individuals from taking advantage of a tax loophole that would have emerged today had the Government not taken action.