Agenda item

Report of the Independent Remuneration Panel

The Chair of the IRP, Graham Russell, presented the report, the requisite four-yearly review of councillors’ allowances and expenses, as well as the whole scheme and the way it is administered. Recommendations have been made based on the level of current allowances, entitlement to expenses, the correction of some anomalies, and some adjustments to reflect how CBC works, all based on evidence received from elected councillors, and he is presenting the view of the Panel today.  He thanked Members and officers who supported the Panel and contributed to the review by providing vital evidence, and was happy to take questions.

In response to questions from Members, the Chair of the IRP confirmed that:

-       he believed that using the 2007 formula to set the basic allowance was appropriate, taking into account the present wage rate, the average 12.3 weekly hours worked by Members, and the percentage reduction the government requires panels to implement to the effect that a certain number of councillor hours should be unremunerated;

-       he did not personally believe a formula was the most effective way to calculate the special responsibility allowances (SRA) some Members are entitled to over and above the basic allowance, and thinks we need to be more flexible in balancing the evidence with what the council expects from these roles.  The Panel has historically used a different formula for this, and may need to revisit it in the future; 

-       although the national average number of weekly hours worked by councillors is 15, the evidence submitted by Members suggested that 12.3 hours was a more realistic number in CBC;

-       the increase in the Deputy Leader’s allowance arises from an anomaly found in the scheme that there was no specific SRA for the Deputy Leader role, which the council is statutorily required to have.  The scheme recommends SRA levels for all Member roles, but some Members are only entitled to one of the allowances despite undertaking more than one role.  As the Deputy Leader is likely to be a Cabinet Member, the allowance is equivalent to the Cabinet Member allowance plus 5%;

-       the large increase in allowance for the Chair and Vice-Chair of Licensing arises from recognition of the fact that Licensing and Planning committees both deliver important regulatory functions, where failure to deliver effectively might render the council liable to risk.  The existing scheme included a wide differential between the two committees, and the Panel felt it was important to recognise that both Chairs have a significant responsibility for managing risk.

In debate, Members made the following comments:

-       the Chair of Licensing has to put in a substantial amount of work behind the scenes, to help keep Cheltenham residents safe;

-       the two regulatory committees are commensurate in the amount of work – Planning focuses on long-term development and knowledge of the Joint Core Strategy, National Planning Policy Framework, and supplementary planning documents, while Licensing is very diverse, with monthly hearings involving a varying amount of work, as well as ad hoc meetings, but the responsibility of Members making the right decision is always critical;

-       as a Member of Licensing Committee, it is clear that the Chair has a huge responsibility and deserves the increased allowance;

-       thanks to the Panel who gave their time freely.  Members must realise how important it is that they feed into the process.  The Panel will be looking at allowances again next year. 

RESOLVED THAT:

The recommendations of the IRP are accepted as follows:

1.         the Council endorses the broader understanding of the purpose of the Basic Allowance as outlined in paragraphs 11-13 of the IRP report.

2.         the Basic Allowance for 2024/25 be set at £6,645

3.         the Basic Allowance for 2025/26 and beyond be reconsidered by the panel in/or around September 2024.

4.         the principle that a member may only claim one Special Responsibility Allowance be continued, with the exception of the Mayor who may claim both the SRA for their role as Civic Head and Chair of the Council.

5.         the Special Responsibility Allowance for the Leader of the Council be set at £21,154 for 2024/25

6.         the Special Responsibility Allowance for the Deputy Leader of the Council be set at £18,745 for 2024/25.

7.         the Special Responsibility Allowance for the Mayor as Civic Head be set at £7,935 and as Chair of Council £595 for 2024/25.

8.         the Special Responsibility Allowance for the following roles be as shown for 2024/25 :

Cabinet Member - £17,853

Planning Committee - £5,207

Licensing Committee - £5,207

Overview and Scrutiny Committee - £4,463

Audit, Compliance and Governance Committee - £1,785

Standards Committee - £1,190

Appointments and Remuneration Committee - £397

Independent Members of Standards Committee - £397

9.         That the Special Responsibility Allowance for a Group Leader remains a flat structure, regardless of size, and be £793 for 2024/25.

10.      That the Special Responsibility Allowance for Vice Chairs of the following Committees be as follows for 2024/25 :

Planning Committee – £2,083

Licensing Committee - £1,770

Overview and Scrutiny Committee - £1,517

11.      That no change be made at the present time to the travel and subsistence provisions of the Scheme.

12.      That no change be made at the present time to the dependent care provisions of the Scheme, and that all councillors be urged to recognise their entitlement to such expenses.