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Town Hall Rich List 2010 - publication by the Taxpayers Alliance

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Response to Taxpayers’ Alliance report on top earners

LGA media release: 1 April 2010

Responding to the report on local authority pay by The Taxpayers' Alliance, a spokesman for the Local Government Association, which represents more than 350 councils in England and Wales, said:

"Councils need talented people in top management positions but they have to balance this with the need, in a tight financial situation, for all salaries to be demonstrably reasonable.

 “In these tough economic times, it is only right that everyone gets to see how much is paid to the people who help deliver their local services.

"These figures represent 0.0008 per cent of the total workforce in local government. Councils are responsible for ensuring that more than £120billion of taxpayers’ money is spent wisely and provides more than 700 services local people want and need.

“Many councils have bigger budgets than FTSE100 companies and to get the brightest people to deliver the best services at the lowest cost for local people they need to pay a competitive wage. When senior salaries in the public sector are compared to senior salaries in the private sector, the taxpayer gets very good value for money.

"Councils' commitment to driving up standards is going from strength to strength and performance continues to improve albeit with strained resources. Councils are delivering an ever better deal for taxpayers and local authorities already have the best track record on efficiency savings in the public sector.”

http://www.lga.gov.uk/lga/core/page.do?pageId=10373396

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Council chief attacks Tory and Labour plans to cap top pay

Plans to cap senior pay in councils will drive away talent and undermine local accountability, a local authority chief has said.

The comments from Mary Orton, honorary secretary of the Association of Local Authority Chief Executives, followed the announcement of Conservative plans to limit top executives' pay to 20 times that of their lowest paid employee.

Orton, chief executive of Waverley Council, a district authority in Surrey, said this would make little difference in local government, saying she earned just over seven times the wage of her lowest paid employee.

The pay gap is wider in unitary and county councils, with a minimum of about £12,000 and some chief executives earning upwards of £200,000, but this reflects at most an equivalent gap to the limit called for by David Cameron in an article for The Guardian today.

But with Labour planning to require all public sector wage packets of over £150,000 to be approved by the Treasury, Orton said that central government should not be interfering in council pay settlements as this undermined local democratic accountability.

She said: "We would be against anything that smacked of central government taking these decisions away from local councils. Local government has long maintained its right to make its own decisions."

She added: "Most people understand the principle that you get what you pay for. If you put an artificial limit on the pay for a job what will happen is that fewer people with the right skills will be interested in doing it."

Alluding to the need for councils and other public bodies to make significant efficiency savings, she added: "You run the risk of running the best people out of the public sector at a time when you need them the most, and the amount you save is minuscule."

http://www.communitycare.co.uk/Articles/2010/04/09/114252/Council-chief-...

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Severance payments to council chief executives

Summary [Download full report below this summary]

By Mutual Agreement front cover

The study looked at council chief executives’ job moves over 33 months, and found that:

  • agreed severance packages for 37 council chief executives totalled £9.5 million, 40 per cent of which was in pension benefits;
  • three in every ten outgoing council chief executives received a pay-off;
  • only six took up other senior council jobs within a year;
  • one in seven single tier or county councils had paid off a chief executive, and this rate seems to be growing; and
  • the average cost to councils of each severance package was almost double the annual basic salary, but in four cases was more than triple.

Severance deals can be in the interests of the council and the taxpayer. But our research shows that not all such deals are justified, that competent chief executives have sometimes lost their jobs needlessly, and that less effective individuals have been paid-off rather than dismissed.

The Commission wants all deals to be more transparent. They should be reviewed by scrutiny or remuneration committees, with details published shortly after they are agreed. And councils should consider whether to include so-called ‘pre-nuptial’ clauses in contracts, specifying the grounds and payment for severance.

The report found that rapid re-employment in local government is unusual – only six out of the 37 returned to a senior council post within a year, and over 80 per cent have yet to return to local government. However, a way should also be found of recouping some of a pay-off where an executive moves quickly into another top council job.

In the interests of openness and transparency, the Audit Commission is making submissions received, following our call for evidence, for the By Mutual Agreement: Severance payments to council chief executives study available. These can be viewed below. A copy of responses will also be placed in the House of Commons library.

 

Download the full study 

Download the full study in PDF format below. This study contains all our findings and recommendations.

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£220kpa council boss hires £122k consultants to tell who to sack

£220k-a-year council boss hires £122k consultants to tell her who to sack.

One of Britain's highest paid council chief executives has demanded her authority spend £122,000 on outside consultants to tell her how to save money.

Andrea Hill, who earns £220,000 a year, has warned workers at Suffolk County Council that the authority needs reorganisation and some of them will be sacked.

Taxpayers in Suffolk will pay three consultancy agencies up to £1,500 a day to tell the council where it can save.

Mrs Hill persuaded the leaders of the Conservative council to break their own rules to get the money without putting the contract out to tender.

According to the minutes of the cabinet meeting on March 30, councillors raised concerns that "the report had a lack of detail and that there was no evidence whether the companies being considered could deliver the required change".

However, the proposal was voted through and Mrs Hill given approval to agree the contracts herself with consultants Scintillate Business Ltd, Fields of Learning, and DNA.

The first two firms appear to be based in Yorkshire and Bedfordshire respectively, but the council minutes do not make clear where DNA is located nor which of several firms with similar names it is.

Scintillate will be paid around £50,000 for 50 days' work but a 10 per cent "contingency budget" - to be used at the programme manager's discretion to cover expenses - could see the cost go to £55,000.

Fields of Learning will get up to £42,000 for two months' work, but less than three weeks will actually be spent in Suffolk - the rest will be office-based "planning".

DNA will be paid around £30,000 for one month's work: which equates to £1,500 a day.

The changes could also see health services, the police and local councils share offices to save money.

In memos circulated to staff, Mrs Hill said the consultants are needed because the council was becoming "unfit for purpose" because council officers were not responding to the needs of residents.

She said: "We have an overly complex and sophisticated organisation that will not be fit for purpose in the new era.

"In particular, inspection, monitoring, performance management, scrutiny, risk and audit have begun to dominate the local government culture to such an extent that our council is now more focused on the regulator than the customer.

"Suffolk's residents expect us to provide the very best value for their council tax."

Mrs Hill called for "a hard-nosed approach" to "harness individual creativity and energy" to reshape the council.

Jeremy Pembroke, Suffolk County Council's leader, said the political leadership of the council was fully behind Mrs Hill's efforts to reform the organisation.

He said: "We have to spend £6.5 million a year on scrutiny, audit, and pleasing the regulators - with that money we could fill in 600,000 potholes."

However, a spokesman for the TaxPayers' Alliance campaign group said: "Spending money on consultants to save money suggests that the chief executive is not very serious about saving taxpayers' cash.

"You would hope that someone paid a lot more than the Prime Minister would have the experience and knowledge to find cost savings.

"There are many businessmen around the country who have had to find similar savings in recent years and managed it without hiring expensive consultants."

In 2008, Mrs Hill was forced to defend her salary and said she was worth it because so few other people were prepared to do the job.

Gordon Brown is paid a salary of £197,689 as Prime Minister.

The highest paid council chief executive is thought to be Joanna Killian, who earns £247,000 a year as head of Essex County Council.

http://www.taxpayersalliance.com/media/2010/05/daily-telegraph-220kayear...

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£300bn has been wasted on public services

A SHOCKING £300billion has been wasted due to public service inefficiency since Gordon Brown came to power, it emerged last night.

Mismanagement and a spend-spend-spend culture have seen soaring amounts of taxpayers’ cash effectively poured down the drain.

But a determined drive to slash waste would help save billions of pounds, campaigners said.

Matching levels of efficiency in America and Japan could help Britain save £16 of every £100 spent, analysis suggests. That would slash well over £100billion a year from public spending without damaging service quality.

The TaxPayers’ Alliance points to expert research for the European Central Bank which found UK public spending was 16 per cent less efficient than that of the US or Japan.

A 16 per cent cut would take £107.8billion from an estimated total spending in 2009-10 of £674billion.

It could have slashed spending of nearly £583billion in 2007-8 by about £93billion and reduced spending of £629.6billion in 2008-9 by about £100.7billion. 

This suggests that since Gordon Brown became Prime Minister in 2007 – after 10 years as Chancellor – as much as £301.5billion has been squandered.

Conservative Shadow Chief Secretary to the Treasury Philip Hammond said last night: “For 13 years Labour simply poured taxpayers’ money into public services with no real reform and without demanding efficiency improvements in return. In rooting out wasteful spending we will also ensure that vital frontline services can be protected during a period of overall budget restraint.”

http://www.taxpayersalliance.com/media/2010/05/daily-express-300bn-has-b...

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Protesters rally to oppose £360,000 'golden goodbye'

DEMONSTRATORS have called for an "end to golden goodbyes" following a controversial decision to fund a council director's early retirement using more than £360,000 of taxpayers' money.

The Taxpayers' Alliance held a rally outside County Hall, in Beverley, to protest at the Tory Cabinet's decision to pump £364,205 into departing director of corporate resources Sue Lockwood's pension fund.

Eighteen months ago councillors were criticised for allowing senior officers, including Ms Lockwood, large backdated pay rises, but said they were to "retain and attract staff".

Tory councillors had been warned that showing up yesterday would be viewed as "utterly disloyal" to council leader Steve Parnaby. Group secretary Felicity Temple said: "To have members of the group so publicly supporting this seems not only disrespectful of our group leader, but also utterly disloyal...

"I do hope anyone contemplating joining this protest march... will think again and not overstep the mark."

Beverley resident Marjorie Shields, 82, retired from nursing in 1996 after more than four decades, to find she was due 69p a week until her husband reached the age of 65.

She said: "I've been fuming ever since I read the first thing about her."

John Robinson, of Paull, said residents were being "betrayed":

"A democracy means everything should be driven by a consensus of people. They make decisions behind closed doors."

Ukip's Euro MP for Yorkshire, Godfrey Bloom, and a local ratepayer, said: "They have been here so long they think they can do what they like. They need booting out."

Independent councillor John Whittle said: "It's just the principle. I find it just wrong, it's as simple as that."

Coun Parnaby, who has defended the payment, has announced a review of the discretionary scheme. He said the scheme formed part of negotiations with unions back in the 1990s over the implementation of "single status" and "job evaluation" which had saved £3m a year over the last decade.

http://www.taxpayersalliance.com/media/2010/05/yorkshire-post-protesters...

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Voting fiasco costs Sheffield council chief his £20,000 fee

SHEFFIELD'S acting returning officer said today he would not claim his £20,000 fee, after an election night fiasco that saw hundreds of people prevented from voting because of long queues at polling stations.

John Mothersole, chief executive of Sheffield City Council, said the authority had launched its own review into the events at polling stations on Thursday night, which saw residents and students turned away.

Mr Mothersole said he had also written to student union presidents at the city's two universities to apologise.

The problems saw angry scenes in Liberal Democrat leader Nick Clegg's constituency of Sheffield Hallam, where students who were unable to vote tried to prevent ballot boxes being taken to the count.

Mr Mothersole later apologised and said a large turnout and students turning up to vote without polling cards had led to issues in some areas.

The Electoral Commission pledged to carry out a thorough review of what happened in Sheffield and a number of other areas across the country, including London, Manchester, Liverpool and Newcastle.

Today, Mr Mothersole said: "First of all I'd like to reiterate again how sorry I am that there are people in Sheffield who did not get to vote on Thursday.

"I recognise everyone has a right to be able to cast their vote. In some locations in Sheffield we got things wrong and that's unacceptable. I do not excuse nor hide from this fact."

He added: "I have never wanted to be one of those civil servants who failed to acknowledge mistakes and pretended lessons could not be learned.

"I have made the decision not to claim the fee for the role of acting returning officer, which would have been paid after the elections."

Mr Mothersole continued: "Sheffield City Council is responding to The Electoral Commission's request for information as to what happened last week. We are also doing our own review into what happened on Thursday so that we can avoid these problems occurring in the future.

"I have already written to the presidents of the student unions at both the University of Sheffield and Sheffield Hallam University to apologise. We are also going to meet up with student representatives soon to discuss the issues and to work together on improvements for the future."

Kate Baldwin, a philosophy and French student at the University of Sheffield, set up a Facebook group in protest at the treatment of student voters at St Johns polling station in Ranmoor, where more than 100 people were left unable to vote at 10pm.

The 19-year-old, from Bristol, said election officials divided the queue into residents and students and has launched on online petition calling for "acknowledgement and apology for discrimination against students".

She said she respected Mr Mothersole's decision not to claim his fee but said it did not excuse the "unnecessary discrimination" shown to students.

"We're really glad the council now recognises the situation but just hope they will make sure this does not happen again," Miss Baldwin said.

The Taxpayers' Alliance welcomed Mr Mothersole's decision not to claim his fee and said other returning officers should do the same.

Matthew Elliott, chief executive of the TaxPayers' Alliance, said: "It's absolutely right that Mr Mothersole has given up his fee and, judging by the chaos on election night, a lot of other returning officers should be following his example.

"The fees paid for overseeing elections are remarkably large and they certainly shouldn't be given to anyone who has messed up and let voters down.

"As well as withholding fees from incompetent and blundering returning officers, the authorities should also reduce the amounts paid to those who delayed counting until the next day.

"Efficient, fair and reliable elections are absolutely crucial and taxpayers certainly shouldn't have to reward people who fail to deliver that."

http://www.taxpayersalliance.com/media/2010/05/yorkshire-post-voting-fia...

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Many earn more than PM in UK public sector

The Prime Minister's £142,500 pay packet may be larger than average but there are many higher earners in the public sector.

At least 166 council chiefs are on packages worth more than £150,000 a year, with 1,250 council staff on £100,000 or more, according to the TaxPayers' Alliance Town Hall Rich List. 

Meanwhile 4,900 consultant medical staff, 200 senior members of the judiciary, and 90 civil servants are also earning more than £150,000, the Senior Salaries Review Body (SSRB) has found.

In total 25,000 UK public sector workers are earning more than £100,000, the SSRB said.

Senior managers in NHS trusts typically earn £147,500, with the highest-paid chief executive, at Guy's and St Thomas' in London, on £270,000, according to a report by Incomes Data Services (IDS).

The huge salaries handed to NHS chiefs, council bosses and members of quangos have stoked much anger.

While David Cameron and his new Cabinet today agreed to a 5% pay cut, their salaries still put them among the country's top earners.

Mr Cameron will now receive a salary of £142,500, while the other Cabinet ministers will take home salaries of £134,565.

The pay for a junior minister in the Commons will be reduced to £89,435.

At the other end of the public sector pay scale, the minimum starting salary for a nurse in the UK is £20,710.

The lowest rate for:

• a school cleaner is £12,270

• a nursery nurse is £12,781

• a care assistant is £13,433

• a healthcare support worker is £13,944

• an ambulance practitioner is £17,732

• a midwife is £24,831.

A worker on the minimum wage at £5.80 an hour who works eight hours a day, five days a week, 52 weeks a year, will still only take home £12,064.

The average pay in the civil service is £22,100 compared to the national average in the private sector of almost £25,000.

And while 40% of civil servants earn £20,000 or less, 63% earn less than £25,000.

Asked about the level of pay for ministers, Unison general secretary Dave Prentis said: "Don't forget that these people are not actually getting a pay cut, because they haven't been ministers before.

"Most of them can afford to take a pay cut, unlike home care workers, teaching assistants, school dinner ladies and the hundreds of thousands of local government workers who have had their pay frozen this year."

http://www.taxpayersalliance.com/media/2010/05/gibraltar-chronicle-many-...

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Fair pay net to be cast over public sector

Will Hutton, the executive director of the Work Foundation, is to head a commission on fair pay in the public sector, seeking to establish a ratio of no more than 20:1 between the highest and lowest paid.

But it was unclear yesterday just how many top executives will be caught in its net given that the review will exclude the BBC and is likely to exclude the Royal Mail, Network Rail, the nationalised banks and other government businesses. David Cameron, prime minister, said yesterday that the commission was an important part of the coalition government's "fairness" agenda, when there were differences of 20 and 30 times between pay at the top and pay at the bottom - "and in the case of the BBC more like 50 times . . . I think it is wrong that we have such high differentials".

How many in central government, quangos, the NHS and local government will be affected by what is likely to be a complex review will depend on how far bonuses and, in particular, generous pension entitlements, as well as basic pay, are taken into account. Very few public servants earn more than £250,000. Only two NHS hospital chief executives earned more than that last year, and their basic pay would still not be 20 times the NHS minimum.

Mark Wallace of the Taxpayers' Alliance said: "We have identified just over 100 public sector workers who earn more than £250,000 a year, but a lot of those are in bodies that seem to be outside this review."

Mr Hutton, who is seen as a figure from the left, said he had not been accused of betrayal for doing a job for the new coalition, "and people from the left I have spoken to have said: 'We should have done this too'".

It was clear there had been significant inflation in public sector executive pay, he said, with the spectacular differentials in private sector pay - 80:1 and more - feeding across into differentials in the public sector.

If a 20:1 ratio was established, "there is no direct leverage on the private sector, but you would be creating a different conversation about that".

http://www.taxpayersalliance.com/media/2010/05/financial-times-fair-pay-...

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Returning officers earning high fees

General election returning officers who presided over counts where people were allegedly unable to vote are set to receive bonuses of up to £27,000, it can be disclosed.

Angry scenes were witnessed at polling stations across the country on 6 May after hundreds of people were prevented from voting because of long queues.

Earlier this week Sheffield Council's chief executive, John Mothersole, said that he would be giving up his right to more than £20,000 in fees for his role as acting returning officer across six constituencies.

He apologised after people were unable to vote at several polling stations in Nick Clegg’s constituency of Sheffield Hallam.

Yesterday, however, campaigners called for acting returning officers in other local authorities, if the mismanagement of polling stations could be proven, to do the same.

In Leeds scores of people were left queuing outside one polling station after doors closed at 10pm. The acting returning officer, Paul Rogerson, is entitled to receive £27,654 for overseeing eight constituencies.

As many as 200 voters were turned away from polling stations in Manchester Withington. Sir Howard Bernstein, the acting returning officer, is entitled to £19,251 for running elections in five constituencies.

The acting returning officer in Liverpool, Colin Hilton, is entitled to £17,470. In Wavertree, Liverpool, several polling stations ran out of ballot papers in the early evening, forcing them to close temporarily.

Returning officers are often council chief executives and already receive healthy salaries.

Mark Wallace, Campaign Director of the TaxPayers’ Alliance, said: “Many of these fees are unjustifiably large, and taxpayers will be surprised to discover how well paid returning officers are.

"It’s absolutely right that the returning officer in Sheffield has given up his payment, and a lot of others who messed up should follow his example.

"Their blunders cost a lot of people the right to vote and gave a bad name to British elections, so they must not be rewarded for their failure.”

The Ministry of Justice allocates a budget based on the size of the electorate in each constituency. An advance is paid and returning officers then have up to one year to complete the accounts.

Returning officers can earn high fees because in many cases they oversee several constituencies.

The Electoral Commission has promised a “thorough” investigation into complaints that people were prevented from voting.

Lawyers have even suggested that some voters could have a case for challenging results in marginal constituencies where their vote could have affected the outcome.

http://www.taxpayersalliance.com/media/2010/05/daily-telegraph-returning...

anonymous (not verified)
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Is £230K too much for council boss?
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NHS wastes £1 every second

Health service hospitals waste £1 every second, a study by The Sun has revealed.

More than £34million was needlessly blown on accountancy mix-ups, employment wrangles, contract buy-outs - and even foreign patients dodging payment.

Our Freedom of Information Act survey found the wasted cash hidden away in the "Losses and Special Payments" section at the end of hospitals' annual accounts.

Losses also went on overpayments to staff who never repay the cash, drugs which go past their use-by date, equipment branded obsolete and contract disputes which the NHS ends up paying for. One of the worst examples was Barts and The London Hospital paying £850,000 to get itself out of a contract to rent accommodation for staff.

Matthew Elliott, of the TaxPayers' Alliance, said: "It is disturbing. With an urgent need to save money the NHS must try to look after every penny."

http://www.taxpayersalliance.com/media/2010/05/the-scottish-sun-nhs-wast...

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Public Sector pay: The numbers

More than 9,000 public sector employees are earning a higher wage than the prime minister, who has previously questioned pay levels in top jobs.

New research conducted for BBC Panorama found that there were more than 38,000 public employees earning above £100,000 and 1,000 people on more than £200,000.

David Cameron took a 5% pay cut when he took office and earns £142,500.

Details from 2,400 public bodies puts the number of high earners far above previous estimates.

The salary details come as the government warns that public spending needs to be drastically curbed.

The government has already revealed that pay for the top 5% of earners in the public sector has risen by 51% in the past 10 years.

To read more http://www.bbc.co.uk/news/uk-11319918

Also see http://www.bbc.co.uk/news/uk-11333472

Autolycus (not verified)
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Council tax and LA officials' pay and my pension

I 've found out that since 1998 by DSS pension rose by 57%.

My Council TAx bill from Lewisham has risen by 97%.

In how many councils have officials had private health care premiuums paid by the council?

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