The leader of the trade union representing senior town hall staff has said she is ‘saddened' by a potential Treasury probe into the personal tax affairs of top council employees.

Following last week's revelations that the head of the Student Loans Company (SLC), Ed Lester, avoided tax under arrangements agreed within Whitehall, the Treasury has launched a wider investigation into senior public sector employees' pay – and warned council staff arrangements could form part of the review.