Debating the councillor renumeration proposals
There is always a faint air of embarrassment around the Council chamber when the issue of councillor allowances comes up at the Budget setting meeting of the Council. This year was no exception as councillors were required to vote on giving themselves a rise.
Allowances were introduced to ensure that the role of councillor was open to a wider range of people rather than just those with a high enough income or an independent income tenabling them to subsidise the role.
Some councillors have other employment in addition to being a councillor while others treat it as a full-time job.
A saving grace is that Brent has the Independent Renumeration Panel (IRP) to advise on renumeration for London councillors. In fact the IRP in its report LINK advocated a higher basic allowance than that adopted by Brent Council (£15,960) against the Brent figure of £13,637 (up from £12,988). This is £649 extra a year for each of the 57 Brent councillors.
The IRP in its report said:
[Our] research showed that basic allowances per annum in London are significantly lower than those paid in Scotland, Wales and Northern Ireland. The assessment of members’ allowances in the home nations is carried out by independent bodies whereas in England, the level of allowances is determined by the local authority members themselves. It has also become clear that allowances in many boroughs are considerably lower than remuneration received by workers in London with comparative levels of responsibilities and skills. This comparative contrast in remuneration is juxtaposed against increased workloads, time pressures, accountability, and financial pressures that councillors are presently having to manage. The Panel takes the view that it is important that there is a system of support in place that recognises the vital role that elected representatives play in local government and the full scale of their responsibilities. This support includes appropriate remuneration levels.
The Roberts commission considered a wide range of issues but at its heart were the key questions of: 1) how best to ensure that people from a wide range of backgrounds and with a wide range of skills are encouraged to serve as local councillors; and 2) how to ensure those who participate in and contribute to the democratic process should not suffer unreasonable financial disadvantage.
Within these broad considerations there can be no doubt that financial compensation or a system of allowances plays a crucial part in making it financially possible for local people to put themselves forward to take on the onerous responsibilities involved in being a councillor and indeed to continue to serve as one.
For this reason it is crucial that allowances for councillors across London are pitched at an appropriate level such that they make a major contribution in ensuring diverse and effective local representation. This 2023 review of Member allowances has aimed to take a step back and ensure that the recommended allowances are pitched such that they serve this crucial purpose.
We are clear that the Panel can only make recommendations and that each council must determine its own system and rates of allowances. However each council must have regard to our recommendations. We are concerned that a wide variation in the level of allowances between councils across London has evolved over the years.
Given that this year’s Panel review has been a significant stocktake and that we have made clear recommendations, with a clear rationale and for the important purpose described in this section, we strongly recommend that the findings of our review and the Panel’s position are adopted across London. This is at the heart of ensuring a healthy, vibrant and representative local government in the capital.
Having looked at various options, the Panel has concluded that the most appropriate approach is to determine the basic allowance as a proportion to the remuneration of the people councillors represent and has used the Annual Survey of Hours and Earnings (ASHE) data, published by the Office for National Statistics as a basis of its calculation. The Panel has used the median wage for all London workers for this purpose. In 2022-23, this is £38,936.73 per annum. Based on a 37 hour week, and taking into account a 30% public service discount, (as has been the custom and practice) the Panel has determined that the recommended basic allowance should be £15,960.
On top of the basic allowance there are Special Responsibility Allowances (SRAs) for councillor roles on committees etc. The Brent proposl this year was that these remained unchanged except for members of the Licensing Committee and chairs of Brent Connects. As Cllr Georgiou pointed out at the Council meeting these have been significantly increased. The Council reports sets out the reasons for the proposed increase:
Over the last two and a half years, the number of Licensing Sub-committee meetings have averaged at 20 or more per year with each hearing lasting at least half a day. Serving on the Licensing Committee bears significant personal responsibility as the committee is quasi-judicial in nature. All members are expected to strictly adhere to the Licensing code of practise, with the failure to do so risking reputational damage to the council or the risk of legal proceedings. All members on the licensing committee are expected to regularly attend the Licensing Sub-committee as well as undertake regular training and development sessions provided by the council, in addition to site visits and other applicable work.
Similarly with the role of Chairs of the Brent Connects Area Consultative Forums and the increasing pressures on community resilience and power, these forums will be taking on a more developed role in the council, as part of our Borough Plan commitment to enabling communities and encouraging greater involvement at a neighbourhood level in council activities
As commented on previously on Wembley Matters SRAs are an area where a council leader can indulge powers of patronage. Their potential loss via removal from a post can keep a councillor in line.
Full list of allowances (Click bottom right corner for full page view)
