Stealth tax architect headhunted

CHRIS Wales, the inventor of New Labour's stealth taxes, is leaving the Treasury to join the Goldman Sachs gravy train.

Wales, formerly a partner at disgraced audit firm Arthur Andersen, was responsible for preparing Labour's tax plans before the 1997 General Election.

He canvassed the City on the idea of removing tax relief on dividends paid to pension funds. He also worked on the windfall tax on utilities. He was recruited to the Treasury by financial fixer Geoffrey Robinson, the former Paymaster General.

The tax on pension funds, which raised £5bn in its first year, is regarded as one of the most damaging taxes Brown introduced. City experts think it is responsible for up to £100bn of the deficit in corporate pension funds.

Soon after the 1997 election Wales was parachuted into the Treasury and has served on Brown's Council of Economic Advisers. He worked at the Treasury until November 2003.

Wales is to become managing director of the financing group at Goldman Sachs, where he should benefit from some of the best bonuses in the City.