Sunday, September 25, 2022
Breaking barriers - but not in a good way
The Times reports that Liz Truss's unconventional approach to basic economics is matched by the rather bizarre way of organising her office.
It is appropriate for Prime Ministers to have a Chief of Staff and special advisors, but normally these people are paid for by the state and are on the government payroll. That ensures they are accountable for their behaviour, have no conflicts of interest and only have the one boss. This barrier of impartiality and accountability is an important part of government.
The Times though, reveals that this prime minister’s chief of staff is being paid through his lobbying company in a highly unusual arrangement that could allow him to pay less tax:
Mark Fullbrook insists he is not being paid through his company for tax reasons and has obtained no tax benefit from the arrangement. However, he is refusing to explain the agreement that lets him direct government strategy without being directly employed by the government.
Previous holders of the role have been treated like any other special adviser (Spad), appointed on a temporary civil service contract and paid a salary that is made public. Fullbrook is instead a contractor and will receive any payment through Fullbrook Strategies, a private lobbying company he created in April but which he says has suspended commercial activities.
One Whitehall source said it was “unheard of” for a No 10 official of his seniority to be employed in this way although Fullbrook disputed this. It is unclear what the implications of the arrangement are from a financial and transparency perspective.
Between April and June, according to the Office of the Registrar of Consultant Lobbyists, Fullbrook’s company contacted the government on behalf of clients including the Libyan House of Representatives, which is opposed by the West and the UN, an energy provider and a PPE firm linked to a fundamentalist Christian sect.
It announced it had “suspended” its commercial activities earlier this month after Fullbrook was appointed by Liz Truss to be her top aide.
However he is continuing to use it as a vehicle to receive his publicly funded salary. The equivalent post under Boris Johnson carried a salary of £140,000.
The arrangement will lead to questions days after No 10 scrapped the so-called IR35 reforms of previous Conservative governments that were designed to stop people paying themselves via a company to avoid tax.
As the paper points out, Fullbrook is already facing questions after they revealed he had been interviewed by FBI agents in connection with an alleged criminal conspiracy to bribe a US politician and influence the outcome of an election in Puerto Rico.
It is appropriate for Prime Ministers to have a Chief of Staff and special advisors, but normally these people are paid for by the state and are on the government payroll. That ensures they are accountable for their behaviour, have no conflicts of interest and only have the one boss. This barrier of impartiality and accountability is an important part of government.
The Times though, reveals that this prime minister’s chief of staff is being paid through his lobbying company in a highly unusual arrangement that could allow him to pay less tax:
Mark Fullbrook insists he is not being paid through his company for tax reasons and has obtained no tax benefit from the arrangement. However, he is refusing to explain the agreement that lets him direct government strategy without being directly employed by the government.
Previous holders of the role have been treated like any other special adviser (Spad), appointed on a temporary civil service contract and paid a salary that is made public. Fullbrook is instead a contractor and will receive any payment through Fullbrook Strategies, a private lobbying company he created in April but which he says has suspended commercial activities.
One Whitehall source said it was “unheard of” for a No 10 official of his seniority to be employed in this way although Fullbrook disputed this. It is unclear what the implications of the arrangement are from a financial and transparency perspective.
Between April and June, according to the Office of the Registrar of Consultant Lobbyists, Fullbrook’s company contacted the government on behalf of clients including the Libyan House of Representatives, which is opposed by the West and the UN, an energy provider and a PPE firm linked to a fundamentalist Christian sect.
It announced it had “suspended” its commercial activities earlier this month after Fullbrook was appointed by Liz Truss to be her top aide.
However he is continuing to use it as a vehicle to receive his publicly funded salary. The equivalent post under Boris Johnson carried a salary of £140,000.
The arrangement will lead to questions days after No 10 scrapped the so-called IR35 reforms of previous Conservative governments that were designed to stop people paying themselves via a company to avoid tax.
As the paper points out, Fullbrook is already facing questions after they revealed he had been interviewed by FBI agents in connection with an alleged criminal conspiracy to bribe a US politician and influence the outcome of an election in Puerto Rico.
He has since signed an agreement with US law enforcement and is co-operating as a witness. It is understood that he is not under investigation. He denies any knowledge of the bribe and in a statement says he is “confident” he behaved within the law at all times.
Nevertheless, the arrangement Truss has with him inevitably raises questions about his status in government and whether the arrangement he has in place is a proper one for the Prime Minister's office.
Nevertheless, the arrangement Truss has with him inevitably raises questions about his status in government and whether the arrangement he has in place is a proper one for the Prime Minister's office.
