Tax scandal bus firm blasted over £167m wage bail out for workers

A transport firm founded by two of Scotland’s richest people has been criticised for applying for coronavirus aid years after being caught up in tax avoidance row.

Stagecoach has furloughed thousands of staff through the publicly funded scheme that pays 80 per cent of the wage bill. It is also expected to be a major recipient of a £167million Covid-19 bailout for bus operators.

But politicians have hit out, saying the bailout will leave a “sour taste” and called for a “hard look” at corporate tax avoidance.

The bus giant – set up by

Perthshire-born siblings Sir Brian Souter and Dame Ann Gloag – lost a 2016 court case over an accounting scheme designed to wipe £11million off the tax bill – deemed “clear tax avoidance” by HM Revenue and Customs.

Scottish Greens Transport spokesman John Finnie said: “Furnishing a company involved in alleged tax avoidance with public money leaves a sour taste. Tax avoidance is despicable practice that deprives our vital public services of much-needed financial support.”

A spokesman for the Scottish Conservatives added: “The public won’t accept firms who have been embroiled in tax controversies attempting to take advantage of furlough.” Lib Dem leader Willie Rennie said: “With this coronavirus crisis requiring a huge financial response, the public and politicians will want to take an even harder look at which companies have been paying their fair share.”

Souter – a major SNP donor – stepped down from the board last year and his sister retired altogether. The pair maintain a significant shareholding and are worth an estimated £875million between them.

A Stagecoach spokesman said: “We have always been a responsible business which has paid its way. Any suggestion to the contrary is abhorrent.”

UNDER FIRE Brian Souter