By Vivienne Russell
29 September 2009
Communities Secretary John Denham has given 37 local authorities the go-ahead to borrow against or sell their assets to fund equal pay settlements.
Denham told Labour Party delegates in Brighton today that he was authorising councils to raise a further £501m to accelerate pay equalisation.
‘This will take the amount we have permitted to more than £1.6bn,’ Denham said. ‘This latest settlement means that the council involved will be able to continue to make these payments without having to sacrifice public service levels or increase council tax.’
The councils affected by the announcement include Birmingham, Devon, Liverpool and Sheffield.
Trade unions welcomed the move. Dave Prentis, Unison general secretary, said the announcement was a ‘big step forward’.
‘[It] will allow more councils across the country finally to close the gap between pay rates for men and women.
‘We welcome the government’s continued commitment to allowing councils to raise cash to fund equal pay in this way. It shows they have been listening to our advice about how they can help local authorities meet the equal pay challenge.’
Denham also highlighted the efficiency savings made by local authorities. Councils generated more than £1.7bn in efficiency savings in 2008/09 – equivalent to £98 per average band D council tax payer, Denham said.
But he also challenged councils to rethink the way they provide services to make public money work harder.
‘Families and businesses in the current climate rightly expect that their money is being spent only where it is making a difference,’ he said.
‘But making every pound work as hard as possible is not just about the cheapest deal – it involves making sure that money is being used smartly with an eye to the future.’
29 September 2009
Communities Secretary John Denham has given 37 local authorities the go-ahead to borrow against or sell their assets to fund equal pay settlements.
Denham told Labour Party delegates in Brighton today that he was authorising councils to raise a further £501m to accelerate pay equalisation.
‘This will take the amount we have permitted to more than £1.6bn,’ Denham said. ‘This latest settlement means that the council involved will be able to continue to make these payments without having to sacrifice public service levels or increase council tax.’
The councils affected by the announcement include Birmingham, Devon, Liverpool and Sheffield.
Trade unions welcomed the move. Dave Prentis, Unison general secretary, said the announcement was a ‘big step forward’.
‘[It] will allow more councils across the country finally to close the gap between pay rates for men and women.
‘We welcome the government’s continued commitment to allowing councils to raise cash to fund equal pay in this way. It shows they have been listening to our advice about how they can help local authorities meet the equal pay challenge.’
Denham also highlighted the efficiency savings made by local authorities. Councils generated more than £1.7bn in efficiency savings in 2008/09 – equivalent to £98 per average band D council tax payer, Denham said.
But he also challenged councils to rethink the way they provide services to make public money work harder.
‘Families and businesses in the current climate rightly expect that their money is being spent only where it is making a difference,’ he said.
‘But making every pound work as hard as possible is not just about the cheapest deal – it involves making sure that money is being used smartly with an eye to the future.’
