An urgent review has been ordered into tax avoidance schemes being used by public sector employees.

Treasury Chief Secretary Danny Alexander announced the plan after it emerged Student Loans Company chief executive Ed Lester was being paid via a firm without tax being deducted. It is reported the arrangement for the payment of his £182,000 salary saves Mr Lestertens of thousands of pounds in tax, paying 21% corporation tax instead of income tax. Responding to an urgent question on the matter in the Commons, Mr Alexander said: "The Student Loans Company will, for the remainder of the contract in question, change the arrangements and deduct tax and National Insurance at source.

"Across Government, if any appointments are found, whether agreed by this or the previous government, which do not provide value for money, I would urge departments to seek to unwind them as quickly as possible and as quickly as is compatible with securing good value for public money....Read more here--: Tax Row: Investigation As Boss Of Student Loans Company Ed Lester Was Paid As Firm Not As Individual