Cllr Alan Lamb (Conservative, Wetherby) first made the allegation in September on social networking site Twitter. He has now taken the issue to a full meeting of the council next week, tabling a motion calling for the practice to stop.
He has given no details of which staff are allegedly involved – or their seniority, or how long the practice has allegedly been going on.
The BBC reported earlier this year that almost 100 permanent posts at local councils were being filled by people paid through limited companies. Public accounts committee chair Margaret Hodge described the situation as a “tax avoidance scheme, which is totally wrong”.
Councillors will debate the motion when they meet on Wednesday 14th November. The motion says:
“This Council notes with strong concern recent examples of senior Leeds City Council staff being paid via private service companies and commits to bringing this practice to an immediate end.
“This Council believes that the recent Government consultation, ‘Taxation of Controlling Persons’, sets a clear approach to this issue and further believes that both morally and in the interest of fairness the Council should fully support the proposals in the consultation.
“This Council commits to developing a clear policy that will create a strong framework for the future appointment of all senior members of staff and further commits to developing this as quickly as possible and through the submission of a report to the Executive Board.”