Mark Fullbrook, Liz Truss’s new chief of staff, is being paid for through his lobbying company in a move that may help him minimise tax.
In a highly unusual move, the prime minister’s most senior adviser is receiving his salary through Fullbrook Strategies.
It comes after Kwasi Kwarteng, the chancellor, repealed IR35 rules in the budget last week that were introduced in an attempt to stop people paying themselves through companies rather than on payroll to minimise their tax.
Fullbrook had previously claimed to the Guardian that he had stopped all commercial activities of the lobbying company as of 31 August this year.
The lobbying firm was only set up earlier this year, and has previously counted as clients Libya’s controversial “parliament”, which has twice attempted to overthrow the UN-established government of national unity in Tripoli, and Sante Global, formerly Unispace Health, which was awarded a £680m PPE contract in 2020.
Kwarteng said he had no knowledge of the arrangements but praised Fullbrook for enhancing the government.
A spokesperson for Fullbrook said: “This is not an unusual arrangement. It was not put in place for tax purposes and Mr Fullbrook derives no tax benefit from it.”
But Frances O’Grady, the TUC general secretary, told the BBC’s Sunday with Laura Kuennsberg programme: “We’d all like to be the judge of that but it’s not even transparent. What is going on?”
A Cabinet Office spokesperson said the arrangement had been cleared by the government’s propriety and ethics team.
“All government employees are subject to the necessary checks and vetting, and all special advisers declare their interests in line with Cabinet Office guidance,” a spokesperson said. “It is not unusual for a special adviser or civil
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