Tory MP calls for clamp on cash paid to consultants

It was previously revealed that the Association of Chief Police Officers (ACPO) had paid hundreds of thousands of pounds to consultants – many of whom were former senior police officers who had set up so-called special purpose companies to receive their payment.

The use of such companies has been questioned amid concerns they maybe used to avoid tax.

Skipton and Ripon Tory MP Julian Smith has now raised the issue in the Commons with Danny Alexander, Chief Secretary to the Treasury.

Mr Smith told MPs: “The Yorkshire Post has recently established that the police chief constables’ body ACPO — the Association of Chief Police Officers — has been paying money to ex-chiefs of police forces through special purpose companies. Will the Chief Secretary confirm that the rules on this process will be tightened up under Government proposals?”

Mr Alexander responded: “I certainly can confirm that, and I shall bring some proposals before the House in due course.

“The hon. Gentleman may recall that it was the case of the chief executive of the Student Loans Company that brought this issue to light.

“We have conducted an investigation into this practice in and across government, which has highlighted the fact that this process is far too widespread. As I say, I shall announce the details in due course, but the hon. Gentleman can rest assured that the Government take this issue very seriously indeed.”

The Yorkshire Post has previously revealed that despite the severe cuts being implemented across the police service, ACPO has handed out a series of contracts at pay rates as high as £1,100 a day without being able to detail why they were not openly advertised or who set the pay levels.

The payments – which totalled £205,982 in one case – were mostly made to private companies set up by the consultants.

They include £194,517 paid for the services of former Essex Chief Constable David Stevens, initially at a rate of £900 a day and subsequently £1,100 a day.

The payments were made to his consultancy company, Devana Services.

Former Detective Superintendent Brian Shelby was paid £205,982 through his company, Pyrope Solutions, while former Cumbria Assistant Chief Constable Graham Sunderland received £182,223 through his company, Epic (GS).

In total, more than £800,000 was paid to 10 consultants, largely over the last three years, from ACPO’s central office.

The Home Office had been previously unaware of the payments as ACPO is actually constituted as a private company.