By Nick Mann | 17 November 2011
Local government minister Bob Neill today set out how councils’ pay policies should be opened up to public scrutiny under the new Localism Act.
Neill launched guidance on the Act’s requirements for local and fire & rescue authorities to draw up pay policies, and to approve and publish annually their arrangements for paying senior council officers.
Under Section 40 of the Act, which received royal assent on November 15, any attempt to depart from these pay policies must be referred back to the full council, which Neill said would ‘democracy proof’ senior pay.
In Opennessand accountability in local pay guidance, councils are advised to set a salary cap of £100,00 in their pay policies. This would subject any appointments above this to a vote by the full council.
They are also advised to set out explicitly in their pay statements whether they allow practices such as above-inflation pay rises or hiring a person already receiving retirement or severance money – a practice known as ‘double-dipping’.
Neill explained that opening up council pay policies to public scrutiny is intended to give taxpayers the opportunity to see whether value for money has been considered when setting pay policies.
‘The Localism Act opens up council pay rules so that salaries for senior posts get “democracy proofed”. Local authorities will now publicly vote on these practices at full council,’ he said.
‘Taxpayers have the right to expect that their interests are being protected, including when senior staff move from post to post. Any responsible locally elected councillor will want to use their pay vote to secure value for money.’
Local, fire and rescue authorities have been given until March 31 to put pay policy statements in place. Ministers have called on councils to schedule full council meetings as soon as possible to prepare for this.
