Agenda item

The Principle Solicitor presented a report outlining the findings of the Independent Remuneration Panel (IRP) in respect of Members’ allowances.  The IRP had made a number of recommendations which would lead to an increase in the allowances paid to Redditch Members. 

The Committee was asked to note that at the request of the Chair the financial implications of an increase to Members’ allowances had been reviewed.  Officers had found that the proposed changes, should they be approved, would result in an increase of £60,000 to the budget, rather than the £51,000 that had been detailed in the report.  This would be incorporated in the Medium Term Financial Plan (MTFP) should Members agree the rise.

Included within the report was reference to the position of members of the Executive Committee without portfolio.  The IRP had not made any recommendations in respect of their Special Responsibility Allowance (SRA).  This was because no other Council covered by the Worcestershire IRP had an arrangement whereby members without portfolio served on the Executive Committee so there was no comparable information available.  The Chair suggested that it would be fair to provide Members in this position with an SRA and he proposed that this should be increased by a multiplier of 1, in line with the proposed rise to the basic allowance for all Councillors.

Members subsequently discussed the following matters:

·                The fact that Redditch Borough Council had not agreed an increase to Members’ allowances for ten years.

·                The need to attract new candidates to stand as Councillors and the fact that the financial remuneration might impact on their ability to commit to the role.

·                The potential for the Council to attract candidates from deprived backgrounds to serve as Councillors and the impact that enhanced remuneration might have on their ability to take up the role.

·                The recent decision taken by the Council in respect of the pay model for staff and the fact that this would lead to an increase in wages for many staff.

·                The allowances paid to Members serving on Bromsgrove District Council and the value of achieving parity in terms of allowances paid, given the shared services arrangements between the two Councils.

·                The allowances paid to Councillors in other parts of Worcestershire and the significant differences in remuneration between Redditch and the other districts that had arisen over the ten years that Redditch Members had not increased their allowances.

·                The increasing responsibilities of a local Councillor and the time that Members needed to dedicate to the role in order to fulfil their responsibilities effectively.

·                The impact that an increase in Members’ allowances would have on the Council’s ability to meet the authority’s equality duties.

·                The reasons why Members decided to serve on the Council.  There was general consensus that this was not for financial reasons.

RECOMMENDED that

1)        the Basic Allowance for 2019-20 is £4,437, representing 2% increase;

2)        the Special Responsibility Allowances are as set out in Appendix 1 to the Independent Remuneration Panel’s report;

3)        travel allowances for 2019-20 continue to be paid in accordance with the HMRC mileage allowance;

4)        subsistence allowances for 2019-20 remain unchanged;

5)        the Dependent Carer’s Allowance remains unchanged;

6)        for Parish Council in the Borough,if travel and subsistence is paid, the Panel recommends that it is paid in accordance with the rates paid by Redditch Borough Council and in accordance with the relevant Regulations; and

7)        the Special Responsibility Allowance for members of the Executive Committee without Portfolio be increased by a multiplier of 1.