A public spending watchdog has urged the Local Government Association (LGA) to continue working with the Treasury to clamp down on controversial ‘off-payroll' arrangements for senior staff.

In its report into Whole of Government Accounts (WGA) issued today, the commons Public Accounts Committee urged the LGA and the Exchequer to set clear expectations on the use of limited companies that minimise income tax for senior employees across the local authority sector, and develop frameworks for disclosing off-payroll deals.

Last year Somerset CC ended the controversial contract of its interim director of children's services, Peter Lewis, who was thought to be earning £320,000 from an ‘off-payroll' deal – with payments channelled through a Personal Services Company to minimise tax and national insurance contributions.