BBC to review pay structure

Concern over tax payments.

MPs heard at the House of Commons Public Accounts Committee yesterday that 148 of its 467 TV and radio presenters were paid through personal service companies (PSCs) firms rather than on the corporation’s payroll.

Wages paid through PSCs, which are legal, do not have income tax and national insurance contributions deducted at source, allowing tax dues to be reduced.

The PAC also heard claims from an unnamed presented that he was "bullied” into using a PSC arrangement for his pay.

The BBC's chief financial officer, Zarin Patel, said yesterday at the Committee hearing that due to high levels of public concern over the use of PSCs to employ some presenters, it would review whether this was appropriate for the broadcaster.

At least 41 BBC "off payroll" freelancers earning £100,000 or more last year did not pay tax at source, with five of these earning more than £150,000 per year, according to the corporation’s figures following a freedom of information request by Conservative MP David Mowat.

"With the amount of public concern expressed today, I think I have to say yes, we will review it, and we will review it with real seriousness," Patel told the House of Commons public accounts committee.

"But can I emphasise that none of this is designed to avoid tax. That is not why we use an extensive number of freelance contracts at the BBC."

This article originally appeared in economia.

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This is a news story from economia.

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Lord Sainsbury pulls funding from Progress and other political causes

The longstanding Labour donor will no longer fund party political causes. 

Centrist Labour MPs face a funding gap for their ideas after the longstanding Labour donor Lord Sainsbury announced he will stop financing party political causes.

Sainsbury, who served as a New Labour minister and also donated to the Liberal Democrats, is instead concentrating on charitable causes. 

Lord Sainsbury funded the centrist organisation Progress, dubbed the “original Blairite pressure group”, which was founded in mid Nineties and provided the intellectual underpinnings of New Labour.

The former supermarket boss is understood to still fund Policy Network, an international thinktank headed by New Labour veteran Peter Mandelson.

He has also funded the Remain campaign group Britain Stronger in Europe. The latter reinvented itself as Open Britain after the Leave vote, and has campaigned for a softer Brexit. Its supporters include former Lib Dem leader Nick Clegg and Labour's Chuka Umunna, and it now relies on grassroots funding.

Sainsbury said he wished to “hand the baton on to a new generation of donors” who supported progressive politics. 

Progress director Richard Angell said: “Progress is extremely grateful to Lord Sainsbury for the funding he has provided for over two decades. We always knew it would not last forever.”

The organisation has raised a third of its funding target from other donors, but is now appealing for financial support from Labour supporters. Its aims include “stopping a hard-left take over” of the Labour party and “renewing the ideas of the centre-left”. 

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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