(CLG) Full disclosure proposed for Council top earners

New proposals for the full disclosure of senior staff pay and perks at local councils were announced by Local Government Minister John Healey today.

The consultation proposes changes to the Accounts and Audit Regulations (2003) creating a new legal requirement and could require up to 475 local authority bodies to include detailed senior pay information in 2009/10 annual statement of accounts.

The new remuneration disclosure rules would require councils to set out full details for around 2500 specifically identified senior posts including temporary senior appointments covering salary, bonuses, pensions, perks and compensation pay offs.

These new disclosure standards would bring councils up to the same high standards that are already required of civil servants and Government Ministers.

Additionally, the proposals build on the standards set in central government by also requiring councils to publish a head count, in narrower £5,000 band increments, of all staff taking home more than £50,000 a year.

John Healey said:

"It is right that council decide the wages for their staff, but the public pays and they have the right to see the full picture of top pay and perks.

"Councils are big organisations with a tough job - they need the best people in charge. But we've recently seen top salaries rising far faster than the rest of local government. This salary spiral has to stop.

"The level of public disclosure for councils is much lower than we now rightly require from the civil service and ministers. I want it brought up to a better standard.

"That is why I am proposing full disclosure in new regulations that will mean authorities must publish in their annual reports what their top earners get in pay, pensions, redundancy payoffs, bonuses and other special allowances.

"In today's tough economic climate councils must think harder about senior salaries and this will put a brake on spiralling pay packets."

Central government's role is to set the right framework in which councils can decide their own pay and appropriate reward packages for good performance.

Mr Healey wants councils to ensure that pay and reward decisions are also made more fair and transparent. Councils are already beginning to discuss and share best practice around setting pay standards, especially at senior levels.

The Government recognises that pay is part of a wider workforce picture and is working with local government and partners to identify ways to widen the talent pool of potential recruits available to middle and senior management vacancies in local government.