Council six-figure pay packages soar 'because of redundancy payouts'

17 Mar 11
The Local Government Association has hit back at criticism of senior council salaries, after a list published today revealed a record 2,295 town hall staff were paid more than £100,000 in 2009/10.

By Lucy Phillips

17 March 2011

The Local Government Association has hit back at criticism of senior council salaries, after a list published today revealed a record 2,295 town hall staff were paid more than £100,000 in 2009/10.

The Taxpayers’ Alliance fifth annual ‘town hall rich list’ showed the numbers receiving more than £100,000 rose by 18% from the previous year. In 2008/09 there were 1,941 six-figure-sum earners. But the increase was partly attributed to one-off redundancy payments.

LGA chief executive John Ransford defended the payments. He said: ‘Senior salaries represent just 2.58% of the overall local government wage bill and local authorities are widely acknowledged as the most efficient part of the public sector.

'As the Taxpayers’ Alliance accepts, a significant number of salary increases were brought about by one-off redundancy payments made as councils strive to become even more efficient.

'Those increases represent a short-term spike caused by councils introducing measures like sharing chief executives and merging back offices, which will significantly reduce management costs in the long term.’     

Thelist includes the job titles and full remuneration of all council employees earning more than £100,000 in 2009/10. It also shows that 48 staff received pay packets of more than £250,000, up from 19 the previous year.

South Somerset’s chief executive, Phil Dolan, topped the list, receiving a £569,000 package after stepping down from his post last March to make way for a joint chief executive with East Devon.

Some 506 employees received total remuneration of between £150,000 and £249,000, up from 408 in 1008/9.

Councils in Cornwall and Newcastle upon Tyne had the highest number of staff on the list, at 32 each. 

Matthew Sinclair, director of the Taxpayers’ Alliance, said: ‘Councils should be scouring every inch of their expenditure to identify savings, so taxpayers will be staggered that so many council employees are still getting such a generous deal.’   

The government was quick to condemn the salaries. Local government minister Grant Shapps said: ‘Under Labour, pay and perks for town hall bosses went through the roof. Labour ministers failed to ensure proper transparency and local accountability to keep it in check. Too many dodgy deals were struck behind closed doors, with pay inflation fuelled by head hunters on commission and by boomerang bosses going from council to council hiking their pay.

‘Cutting down senior pay is one way that councils can save taxpayers' money. In these tough times of paying off Labour's deficit, town halls bosses should consider following government ministers and take a pay cut to lead by example.’

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