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emails released under Freedom of Information Act show Sir Gus O'Donnell was "content" with the settlement of Ed Lester

a controversial deal that allowed the executive director of the Student Loans Company (SLC) to be paid without tax being deducted at source has been approved by a majority of senior officials from Britain, according to the e-mails released under the Freedom of Information Act.

The correspondence between Whitehall officials

show that Sir Gus O'Donnell, Cabinet Secretary and then, first called for "urgent clarification" about the affair for Ed Lester. The next day it was reported in another e-mail that O'Donnell was happy with the arrangement.

The revelations in the documents obtained by the site Exaro research will increase concerns that other senior officials were also favorable tax deals have allowed to pass. An e-mail dating from 20 December 2010 shows that Chris Andrew, company secretary of the SLC, wrote that "Gus O'Donnell, has called for urgent clarification before it is placed on the Alexander TSA [Danny, the Chief Secretary of the Treasury].

"Gus has asked us to define why it is not proposed to Ed Lester on the payroll of the SLC," he said.

In an email written the day after it emerged that questions had been responded O'Donnell. Andrew wrote: "I spoke to the Cabinet Office, which confirmed this morning that Gus O'Donnell, is now content and that are sent to the TSA this morning."

The agreement with Lester, who was held in 2010, was first revealed in a letter from HM Revenue and Customs (HMRC) has obtained under the Freedom of Information Act.

also suggest that Alexander was informed of the plan to keep Lester payroll. He insisted he was not aware of the tax consequences of the operation.

Alexander Whitehall has ordered an urgent review of all concerned. He announced in parliament that the SLC would deduct tax and national insurance compensation Lester at the source in the future, after being questioned by deputies in an emergency debate.

The debate was triggered when John Bercow, the Speaker of the House of Commons, gave permission for an urgent question on the subject of Nick Brown, Labour MP and former chief whip of the government. aa

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