Some councils still don't get it as chief executive pay continues to rise

March 05, 2012 12:08 PM

Last week, the Daily Mail reported that council Chief Executive pay in the North East has increased by up to 13 per cent in some cases. Using our Town Hall Rich List 2011 some of the examples are:

  • North Tyneside Council paid its chief executive a salary of £196,021 in 2010-11, an increase of 13 per cent on the £172,862 received by his two predecessors.

  • Newcastle City Council paid its chief executive a salary of £173,784 in 2010-11, up 10 per cent on the £157,309 he received in 2009-10.

  • Middlesbrough Council’s chief executive received £142,650 in salary in 2010-11, an increase of 8 per cent on his previous years’ salary of £131,687. This is despite a pay freeze across the council and also at a time when the authority is proposing to increase Council Tax by 3.5 per cent for the coming 2012-13 financial year, when the majority of councils across the country have accepted the Government’s offer of funds to finance a freeze.


However, neighbouring authorities managed to freeze or even cut the pay of their chief executives:

  • The chief executive of Scarborough Council saw his salary reduce by 5 per cent from £116,334 to £110,693, the chief executive of Northumberland reduce by 9 per cent from £188,458 to £172,498 and the chief executive of Gateshead Council had his salary frozen at £194,015.


While many taxpayers have had to take pay freezes or cuts – including many in the public sector – many councils have continued to increase salaries of senior staff. This shows that some are still completely out of touch. Smaller district councils have interestingly merged the top job across two local authorities – St. Edmundsbury Borough and Forest Heath District, for instance. In order to keep Council Tax as low as possible salary bills have to be cut. What’s more, when those at the top freeze or trim their own salaries, they demonstrate to their staff and residents  that they do live in the real world, and set an example that they take spending restraint seriously.

 Last week, the Daily Mail reported that council Chief Executive pay in the North East has increased by up to 13 per cent in some cases. Using our Town Hall Rich List 2011 some of the examples are:

  • North Tyneside Council paid its chief executive a salary of £196,021 in 2010-11, an increase of 13 per cent on the £172,862 received by his two predecessors.

  • Newcastle City Council paid its chief executive a salary of £173,784 in 2010-11, up 10 per cent on the £157,309 he received in 2009-10.

  • Middlesbrough Council’s chief executive received £142,650 in salary in 2010-11, an increase of 8 per cent on his previous years’ salary of £131,687. This is despite a pay freeze across the council and also at a time when the authority is proposing to increase Council Tax by 3.5 per cent for the coming 2012-13 financial year, when the majority of councils across the country have accepted the Government’s offer of funds to finance a freeze.


However, neighbouring authorities managed to freeze or even cut the pay of their chief executives:

  • The chief executive of Scarborough Council saw his salary reduce by 5 per cent from £116,334 to £110,693, the chief executive of Northumberland reduce by 9 per cent from £188,458 to £172,498 and the chief executive of Gateshead Council had his salary frozen at £194,015.


While many taxpayers have had to take pay freezes or cuts – including many in the public sector – many councils have continued to increase salaries of senior staff. This shows that some are still completely out of touch. Smaller district councils have interestingly merged the top job across two local authorities – St. Edmundsbury Borough and Forest Heath District, for instance. In order to keep Council Tax as low as possible salary bills have to be cut. What’s more, when those at the top freeze or trim their own salaries, they demonstrate to their staff and residents  that they do live in the real world, and set an example that they take spending restraint seriously.

 

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