PRIVATE consultants paid almost £1m by the council to identify cuts to services have been accused of “promoting tax avoidance on an industrial scale”.

Figures obtained by the Cambrian News in January revealed that Ceredigion County Council had so far paid consultants Pricewaterhouse Cooper (PwC) £963,630 of taxpayers’ money as part of the ‘risk and reward’ work, which sees PwC receive a percentage of savings made by the council from cuts identified by the company.

The council, which has refused to reveal amendments made to their contract with PwC, citing commercial sensitivity, is now under pressure to review its relationship with PwC after a parliamentary committee accused the firm of promoting a “mass-marketed tax avoidance scheme”.

Margaret Hodge MP, chair of the Commons Public Accounts Committee, said: “We believe that Pricewaterhouse Coopers’ activities represent nothing short of the promotion of tax avoidance on an industrial scale.

“Contrary to its denials, the tax arrangements PwC promotes, based on artificially diverting profits to Luxembourg through intra-company loans, bear all the characteristics of a mass-marketed tax avoidance scheme.”

Cllr Gethin James has called PwC’s practices “immoral” and called on the Plaid-led council to end its relationship with the company, especially in the wake of the ‘Panama Papers’.

A council spokesperson said: “In common with many other local authorities, Ceredigion County Council has been working with PricewaterhouseCoopers (PwC) to find ways of working more prudently and efficiently.

“The council cannot comment or speculate on other organisations’ financial arrangements.”See this week's south editions for the full story, in shops now or online by clicking the Digital Editions tab at the top of the page