A powerful Commons spending watchdog is considering recalling the Local Government Association to Parliament, after casting doubt on reports that ‘off-payroll' arrangements are rare across town halls.
The Public Accounts Committee (PAC) said it was ‘sceptical' about figures outlining the use of personal service companies (PSCs) provided to MPs by LGA chief executive Carolyn Downs at a Parliamentary hearing in July. Ms Downs told MPs that seven out of the nine regional local government employers had identified just 13 people engaged in ‘off-payroll' arrangements – a practice that the MPs last week reported aroused suspicions of complicity in tax avoidance.
