The Coalition Government is struggling to fend off a tax avoidance scandal. Key personnel at the Student Loans Company (SLC) are being paid via a company without tax being deducted, it has been revealed. Chief Secretary to the Treasury Danny Alexander, one of the most senior Liberal Democrats in the cabinet, was said to be unaware of the arrangement. However, Mr Alexander is required to sign off SLC's top civil servants in common with all higher public sector salaries.