Danny Alexander, the chief secretary to the Treasury, has said that he plans on taking decisive action against those who attempt to swerve taxation despite them working on government contracts.
In his conference speech last week he poured praise on the way in which HM Revenue & Customs (HMRC) has dealt with the issue of tax avoidance but added that further measures will be taken.
The furore around government workers minimising their tax liabilities came this summer when it emerged that Ed Lester, head of the Student Loans Company, was working via his own limited company and thus paying less tax and national insurance.
Mr Alexander said: "In the summer, I shut down the scandalous situation where thousands of public sector workers were being paid in a way that potentially allowed them to pay too little tax.
"Rules are now in place to stop that happening – based on the simple principle that if you’re being paid public money, you should pay your taxes."
He added that he is currently in discussions with the HMRC and hopes to have a “workable solution” put together before the end of the year.