| Item | Description | Resolution |
|---|---|---|
| PART 1 - PUBLIC | ||
| MATTERS FOR RECOMMENDATION TO THE COUNCIL | ||
| GP 13/011 |
Independent Remuneration Panel - Members' Allowances |
The joint report of the Chief Executive and Director of Finance and Transformation set out details of a review undertaken by the Independent Remuneration Panel (IRP) on Members' Allowances and advised that the 'outcome' of the review, if adopted, represented growth to the budget. To address Members' strong views throughout the Budget cycle that there should be 'no growth' an alternative proposal encompassing the principles of the IRP's review but resulting in a position of 'in year' savings was also presented. It was reported that in terms of provisions made within the Medium Term Financial Strategy (MTFS), the alternative proposal could also offer savings in excess of £50,000. Careful consideration was given to both the independent report of the IRP and the suggested alternative proposal which offered the ability to reduce the budget for Allowances. Members expressed support in principle for a system of 'multipliers', as proposed by the IRP, to calculae special responsibility allowances. It was noted that any changes would take effect from the date of Annual Council (14 May 2013). In response to a question, the increased responsibility of the Overview and Scrutiny Committee, as set out by the Chief Executive, to review and scrutinise the way the Borough Council operated and delivered services in the current challenging economic climate was welcomed. Members recognised the value and role of vice-chairmen and considered it appropriate that remuneration should be offered to reflect this contribution. It was, however, felt that if 'second' vice-chairmen were appointed, they should not receive an allowance. A proposal was made at the meeting to award allowances to vice-chairmen based on 25% of the relevant chairman's allowance and this was considered by Members. Discussion took place regarding mileage rates and the recommendation from the IRP that HMRC rates should be adopted. It was noted that the current HMRC rate for travel by car was presently 45p per mile. RECOMMENDED: That (1) the Basic Allowance for 2013/14 remain at its current level of £5,076; (2) (i) individual Members should not receive more than one Special Responsibility Allowance (excluding group leaders); (ii) allowances and multipliers for the Leader, Opposition Group Leader, Cabinet Members and chairmen should be set as per the 'alternative proposal' set out in columns E and F of Annex 2 to the report; (iii) vice-chairmenship allowances should be retained and based on 25% of the relevant chairman's allowance; and (iv) second vice-chairmen, if appointed, should receive no allowance; (3) the level of Childcare Allowance for 2013/14 should increase to a maximum rate of £6.19 per hour (being the minimum wage) and the level of Dependent Carers' Allowance for 2013/14 should increase to £16.00 per hour as recommended by the IRP; (4) HMRC rates be adopted for Mileage Allowances for 2013/14; (5) councillors should not be offered the opportunity to enter the Local Government Pension Scheme; and (6) from 2014/15 onwards until a further fundamental review by the IRP is required, allowances should be indexed annually in line with the staff pay award. A schedule setting out the allowances and multipliers resulting from the above recommendations is attached. Based on the existing constitutional structure the recommendations above result in 'in year savings' of £7,000 in respect of Special Responsibility Allowances, and an estimated £3,500 in respect of mileage costs. In addition, it was noted that the provision of £50,000 within the MTFS could be removed and could contribute towards the Borough Council's savings targets. *Referred to Council |