The payment of council officials through personal services companies (PSC) – which can allow individuals to pay lower levels of tax – is set to be the subject of a probe by senior MPs.

The influential Public Accounts Committee (PAC) on 25 February asked Sir Bob Kerslake, permanent secretary at the Department for Communities and Local Government (DCLG) and head of the civil service, to supply information on how many personal services contracts there are in local government.