Brown to close private equity loophole

The government will close a tax loophole that allows fat-cat bosses to pay less tax than their office cleaners, Gordon Brown said today.

The prime minister vowed to take action on private equity chiefs in the pre-budget report later this year.

During a wide-ranging question-and-answer session with Mariella Frostrup, the TV and radio presenter, at the Labour party conference in Bournemouth, Mr Brown said: "Whenever there is a loophole that shouldn't exist we take action. Since 1997 we have closed a massive number.