COMMUNITIES AND LOCAL
GOVERNMENT News Release (068) issued by COI News Distribution
Service on 30 March 2009
New proposals for
the full disclosure of senior staff pay and perks at local
councils were announced by Local Government Minister John Healey today.
The consultation proposes changes to the Accounts and Audit
Regulations (2003) creating a new legal requirement and could
require up to 475 local authority bodies to include detailed
senior pay information in 2009/10 annual statement of accounts.
The new remuneration disclosure rules would require councils to
set out full details for around 2500 specifically identified
senior posts including temporary senior appointments covering
salary, bonuses, pensions, perks and compensation pay offs.
These new disclosure standards would bring councils up to the
same high standards that are already required of civil servants
and Government Ministers.
Additionally, the proposals build on the standards set in central
government by also requiring councils to publish a head count, in
narrower £5,000 band increments, of all staff taking home more
than £50,000 a year.
John Healey said:
"It is right that council decide the wages for their staff,
but the public pays and they have the right to see the full
picture of top pay and perks.
"Councils are big organisations with a tough job - they need
the best people in charge. But we've recently seen top
salaries rising far faster than the rest of local government. This
salary spiral has to stop.
"The level of public disclosure for councils is much lower
than we now rightly require from the civil service and ministers.
I want it brought up to a better standard.
"That is why I am proposing full disclosure in new
regulations that will mean authorities must publish in their
annual reports what their top earners get in pay, pensions,
redundancy payoffs, bonuses and other special allowances.
"In today's tough economic climate councils must think
harder about senior salaries and this will put a brake on
spiralling pay packets."
Central government's role is to set the right framework in
which councils can decide their own pay and appropriate reward
packages for good performance.
Mr Healey wants councils to ensure that pay and reward decisions
are also made more fair and transparent. Councils are already
beginning to discuss and share best practice around setting pay
standards, especially at senior levels.
The Government recognises that pay is part of a wider workforce
picture and is working with local government and partners to
identify ways to widen the talent pool of potential recruits
available to middle and senior management vacancies in local government.
Notes to Editor
1. The new regulation would amend the Accounts and Audit
Regulations 2003 (Si 2003/533) ("the principle
regulations"). The principle regulations apply in relation to
England only.
2. Regulation 7 amendment would constitute a statement of
accounts to include reference to remuneration reporting for senior
officers. The amendment is intended to ensure comparable
remuneration disclosure for all senior staff within organisations
that will fulfil the same degree openness and transparency as the
civil service and listed companies in the private sector (under
the Companies Act 2006).
3. The consultation proposes:
a. Through amendments to regulations make it a requirement for
'remuneration disclosure' to include (a) salary; (b)
bonuses; (c) additional payments; (d) compensation or ex gratia
payments; (e) benefits in kind and (f) pensions;
b. A definition of 'senior' that includes the head of
the authority's paid service; 1st tier officers who report to
the head of paid service e.g. Director, Chief Officer or Strategic Director.
c. A change to the way staff earning over £50,000 is reported,
breaking this down into £5,000 bandings in place of the existing
£10,000 bandings.
4. The local authority bodies covered would include London
borough councils, county and district councils in England; joint
authorities; the Greater London Authority; National Park
authorities; Waste authorities; TfL; Police and Fire Authorities.
5. The consultation proposes to bring pay disclosure in line with
the recommendations of the Information Commissioner's Office:
http://www.ico.gov.uk/upload/documents/library/freedom_of_information/practical_application/salaries_v1.pdf
6. The 12 week consultation will end on the 22nd June 2009. Full
details can be found at: http://www.communities.gov.uk/localgovernment/publications/consultations/
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