Issue - decisions

Report of the Independent Remuneration Panel

05/01/2021 - Governance Committee: Report of the Independent Remuneration Panel

64.1     The Council considered the report of the Independent Remuneration Panel and recommendations for the scheme of allowances and expenses from May 2021, in the light of a report from the Governance Committee (pages 63 to 96).

 

64.2     An amendment was moved by Cllr M Jones and seconded by Cllr Walsh.

 

The Labour Group and the Liberal Democrat Group generally welcomes the report of the Panel and thanks the Panel for its work during its review of the Member Allowance Scheme. The Labour Group and the Liberal Democrat Group support the Panel’s recommendations about sustainability as a move to reducing the County Council’s carbon footprint, to support our climate change emergency.

 

The Labour Group and the Liberal Democrat Group welcomes the IRP’s recommendation to freeze allowances in 2021/22 in view of the ‘present economic environment in which Council services are being increasingly severely restricted, and constituents are suffering with furlough, loss of business income and possible looming unemployment’ (paragraph 31).  This is further re-enforced by the decision by the Government to impose a public sector pay freeze for public sector workers which includes all of the workers in services that the county council employs.

 

In light of this, the Labour Group and the Liberal Democrat Group recognises that recommendations (m) and (p) in the Panel’s report may lead to reductions in the special responsibility allowance paid to some future postholders in the roles of senior advisers to cabinet members and minority group leaders.

 

However, the Labour Group and the Liberal Democrat Group have become concerned that there is an overall lack of consistency in the report relating to the treatment of special responsibility allowances.  If it is appropriate to reduce the aforementioned allowances, then it believes it is also appropriate to apply a similar reduction by the same effective amount.

 

The Labour Group and the Liberal Democrat Group therefore puts forward the following amendment to the Governance Committee’s recommendation, in the light of the severe financial pressures and in order to ensure consistency with all special responsibility allowances for councillors, which could save £88,290 compared to the current cost of special responsibility allowances. Combined with the potential reductions in minority group leader of £4,285 and senior adviser to cabinet members’ allowances of £7,324, this could total £99,809.

 

‘That the Independent Remuneration Panel’s report and recommendations be approved, but the Council agrees to go further than the IRP’s recommended approach to freeze allowances and thereby agrees to reduce the special responsibility allowances paid to the Chairman, Vice-Chairman, Leader, Cabinet Members, Committee Chairmen and Foster Panel members by 25% in May 2021. This would have consequential amendments to the IRP’s recommendations (g)-(k).

 

An extract from Schedule 1 of the Member Allowance Scheme is shown below, illustrating the effect of the proposed amendment.

 

Schedule 1

 

Special Responsibility Allowances

 

Appointment

Allowance per member

£ per annum

Chairman of the County Council

16,24721,663

Leader of the Council

25,38733,849

Vice-Chairman of the County Council

6,4628,616

Cabinet Member (and Deputy Leader)

18,27824,371

Cabinet Member for Adults and Health

16,24721,663

Cabinet Member for Children and Young People

16,24721,663

Cabinet Member for Economy and Corporate Resources

16,24721,663

Cabinet Member for Education and Skills

16,24721,663

Cabinet Member for Environment

16,24721,663

Cabinet Member for Finance

16,24721,663

Cabinet Member for Fire & Rescue and Communities

16,24721,663

Cabinet Member for Highways and Infrastructure

16,24721,663

Leaders of Minority Parties with at least three members**

£5,000

Leaders of Large Minority Parties with at least 15 members*

12,995

Leaders of Medium Minority Parties (five to 14 members)*

10,640

Leaders of Small Minority Parties (three to four members)*

4,236

Chairman of the Performance and Finance Scrutiny Committee

7,1649,552

Chairman of the Children and Young People’s Services Scrutiny Committee

7,1649,552

Chairman of the Environment and Communities Scrutiny Committee

7,1649,552

Chairman of the Fire & Rescue Service Scrutiny Committee

7,1649,552

Chairman of the Health and Adult Social Care Scrutiny Committee

7,1649,552

Chairman of the Planning and Rights of Way Committee

7,1649,552

Chairman of the Regulation, Audit and Accounts Committee

7,1649,552

Senior Adviser to a Cabinet Member

5,658

Adviser to a Cabinet Member*

4,397 3,640

Member of the Fostering Panel

2,7303,640

* and ** reflect the IRP’s recommended levels.’

 

64.3     The amendment was put to a recorded vote under Standing Order 35.5.

 

(a)      For the amendment – 11

 

Cllr Buckland, Cllr N Dennis, Cllr M Jones, Cllr Lord, Cllr Millson, Cllr O’Kelly, Cllr Oppler, Cllr Oxlade, Cllr Purchese, Cllr Quinn and Cllr Smytherman.

 

(b)      Against the amendment – 40

 

Cllr Acraman, Cllr Atkins, Cllr Baldwin, Cllr Barnard, Cllr Barrett-Miles, Cllr Bennett, Cllr Boram, Cllr Bradbury, Cllr Burrett, Cllr Catchpole, Cllr Crow, Cllr J Dennis, Cllr Duncton, Cllr Elkins, Cllr Hillier, Cllr Hunt, Cllr A Jones, Cllr A Jupp, Cllr N Jupp, Cllr Kennard, Cllr Kitchen, Cllr Lanzer, Cllr Magill, Cllr Markwell, Cllr Marshall, Cllr McDonald, Cllr Mitchell, Cllr Montyn, Cllr R J Oakley, Cllr S J Oakley, Cllr Patel, Cllr Pendleton, Cllr Purnell, Cllr Russell, Cllr Sparkes, Cllr Turner, Cllr Urquhart, Cllr Waight, Cllr Whittington and Cllr Wickremaratchi.

 

(c)      Abstentions – 8

 

Cllr Arculus, Cllr Bradford, Cllr Bridges, Cllr Brunsdon, Cllr Burgess, Cllr Edwards, Cllr Fitzjohn and Cllr Sudan.

 

Cllr Barling, Cllr Barton, Cllr Cloake, Cllr Goldsmith, Cllr Hall, Cllr High, Cllr Lea, Cllr Smith, Cllr Simmons and Cllr Walsh were absent for the vote.

 

64.4     The amendment was lost.

 

64.5     Resolved –

 

That the Independent Remuneration Panel’s report and recommendations, as set out at Appendix 1 to the report, be approved.


01/12/2020 - Report of the Independent Remuneration Panel

35.1     The Committee considered a report from the Director of Law and Assurance and the report of the Independent Remuneration Panel which contained recommendations for the scheme of allowances and expenses from May 2021, for recommendation to the County Council (copy appended to the signed minutes).

 

35.2     Dr Neil Beer, Chairman of the Panel, introduced the report, commenting that the Panel’s recommendations for a freeze to allowances in 2021/22 were made in the context of the coronavirus pandemic, the impact of the measures taken to deal with it on many of the residents of West Sussex and noting that members had received an increase in allowances for inflation during 2020/21.

 

35.3     Dr Beer said that the Panel’s recommendation for a reduction in the special responsibility allowances (SRAs) for the County Chairman and Vice-Chairman were to remove increases made by an amendment to the Panel’s report in 2017 and to bring the allowances in line with its agreed methodology. The Panel’s recommendations in relation to allowances for minority group leaders were to bring the allowances in line with comparator county councils. Following comments on the draft report, the Panel had conducted additional research and analysis on allowances for minority group leaders and considers that its recommendations are appropriate.

 

35.4     Dr Beer commented that the Panel had made a number of other recommendations, including some aimed at encouraging more sustainable travel by members, consolidating the two current cabinet member adviser roles and defining the circumstances in which an SRA would be made to a member on extended leave.

 

35.5     As leader of the Liberal Democrat Group, Cllr Walsh commented that, in his view, the recommended reduction in the allowances for the minority group leaders is at odds with the other recommendations and was made without evidence of an actual or likely decrease in workload. He felt the proposals ignore the broad role of minority group leaders, their need to consider material, liaise and prepare irrespective of the size of their group and their importance constitutionally to the smooth working of a council. He asked whether the evidence from other county councils supported the Panel’s proposals. Cllr Walsh said he accepted the idea of a linear progression for the allowance based on the number of members but felt that the starting point in the proposal did not do justice to the nature of the role. He proposed that the starting point on the sliding scale should be around that of a committee chairman, i.e. around £9,000. This proposal was not seconded.

 

35.6     As leader of the Labour Group, Cllr Jones expressed disappointment that, in his view, the Panel had not listened to the legitimate concerns expressed by minority group leaders. He felt that the review had not applied the principles consistently, and that the proposed decreases mainly affected minority party members and did not reflect the effort involved and the value brought to the working of the Council by minority group leaders.

 

35.7     Cllr Bradbury supported the proposals in the report, particularly in relation to sustainable travel. He also supported the freeze in allowances. He did however express concern about the proposals for defining the role of the merged adviser to a cabinet member post. In his view, it should be for the Leader in consultation with the Cabinet Member to decide what the role of any particular adviser should be and not a role for officers.

 

35.8     The Leader expressed his thanks to the members of the Panel and his support for the recommendations. He felt that the freeze in allowances was appropriate. He recognised that all members put a lot of work into the Council and formed an important part of the scrutiny of decisions and many put in additional work for which they did not receive an additional allowance. He said he wholeheartedly supported the changes proposed to advisers including assistance from officers in the development of the scope of a particular role. He commented that on occasion minority party members may be best suited to those roles in terms of skills.

 

35.9     Cllr Lanzer expressed his thanks to the Panel for its work which he felt included a number of important changes for the future, including reference to non-fossil fuel vehicles. He supported the merger of Adviser roles and the freeze in allowances. In relation to the changes in minority group leader allowances he felt that the most important change was the move to a linear, pro-rata allowance, based on the number of members, as in his opinion the number of members in a group is significant.

 

35.10  Dr Beer thanked the Committee for its support for the recommended freeze on allowances and for the merging of the roles of Senior Adviser and Adviser to a Cabinet Member.

 

35.11  In relation to the recommendations around allowances for minority group leaders, Dr Beer commented that the Panel had listened to the feedback but had not agreed with the arguments put forward. The Panel had undertaken additional work which was documented in the report. He also referred to the method previously agreed by the Panel to assess roles which attracted SRAs, which was based on responsibility, accountability and workload. Those algorithms had been consistently applied since they were first agreed in 2016, through interim reviews and in the current report. The Panel was apolitical and it considered only the role, not the party of the person who filled it.

 

35.12  In terms of the changes to group leader allowances shown in the graphs on page 21 of the report, Dr Beer commented that the maximum is slightly higher than the current maximum and the minimum is quite a lot higher than the current starting point. He welcomed the support for a linear approach to minority group leader allowances which the Panel believes balances the tendency of the workload to increase as the number of members in a group increases and that the leader of small group will be stretched quite thinly in providing scrutiny. He commented that the start point and end point of allowance for the leader of a small minority group is roughly that of an adviser and for the leader of a large minority group, between that of a committee chairman and a cabinet member.

 

35.13  The recommendations were as agreed, as set out below. Cllr Bradbury abstained in relation to paragraph (n) of the Panel’s recommendations and Cllr Jones and Cllr Walsh abstained but were against the recommendation in relation to paragraph (p).

 

35.14  Resolved – That the Independent Remuneration Panel’s report and recommendations be submitted to the Council on 11 December 2020 for approval.