Agenda item

To consider the report of the Assistant Chief Executive.

(Report circulated)

The report of the Assistant Chief Executive was submitted, considering the report and recommendations of the Independent Remuneration Panel on Members’ Allowances in relation to Councillors’ Allowances for 2009/10.

The Assistant Chief Executive drew attention to the request of the Scrutiny Committee – Resources Budget Working Group at its meeting on 2 February 2009 that the recommendations of the Independent Remuneration Panel are considered in the context of the challenging financial situation currently facing the Council.

Executive was informed that it had been agreed at a meeting of the four Group Leaders, that no increase in basic or special responsibility allowances should be recommended to Council for 2009/10, in view of the financial circumstances facing the Council at this time. Councillor Mrs Morrish reported that the Liberal Group had proposed a 10% reduction in allowances. Councillor Edwards, seconded by Councillor Hannaford, proposed that Executive recommend to Council a zero increase in members’ allowances for 2009/10 and this was unanimously carried.

Councillor Prowse attended the meeting under Standing Order 44 and spoke in favour of no increase in allowances

Executive recommended that:-

(1)        Council note the request of the Scrutiny Committee – Resources Budget Working Group to consider the recommendation of the Independent Remuneration Panel in the context of the challenging financial situation facing the Council and the recommendation of Executive that there should be no increase in basic or special responsibility allowances for 2009/10; and

(2)        in the light of (1) above, Council consider and decide on the following recommendations of the Independent Remuneration Panel:  

(i)         the basic structure of the current members’ allowances scheme be retained for 2009/10, pending a more fundamental review including consideration of remuneration in the event of a shadow authority, when the outcome of the current review of local government in Devon is known, some of which may be determined by the Government in Implementation Orders;

(ii)        the basic allowance continue unchanged in 2009/10, updated using the index previously agreed (i.e. the annual local government staff pay award for the previous year);

            (iii)       subject to updating for inflation, the other Special Responsibility Allowances continue unchanged;

(iv)       the principle that any member qualifying for more than one Special Responsibility Allowance is paid the higher allowance only should be retained;

(v)        for the year 2009/10 Councillors’ basic and Special Responsibility Allowances should be updated in line with the annual local government staff pay award for 2008/09 (2.45%);

            (vi)                   that all Councillors be permitted to join the Local Government Pension Scheme, should they wish to do so, benefits to be based on both Basic and Special Responsibility Allowances; 

(vii)      the Travel and Subsistence allowances provisions for staff continue to apply to Exeter City Councillors, where appropriate;

       (viii)      the current Dependants’ Carers’ Allowance scheme be maintained and the level of allowance, currently £5.73 per hour, continue to be linked to and updated in line with the minimum wage; and

       (ix)       the co-optees’ allowance payable to the co-opted members of the Standards Committee continue at £25 per session for 2009/10.

(3)        that the current Independent Remuneration Panel members be invited to continue with a view to commencing a phased replacement from 2010.

The report of the Assistant Chief Executive was submitted, considering the report and recommendations of the Independent Remuneration Panel on Members’ Allowances in relation to Councillors’ Allowances for 2009/10.

The Assistant Chief Executive drew attention to the request of the Scrutiny Committee – Resources Budget Working Group at its meeting on 2 February 2009 that the recommendations of the Independent Remuneration Panel are considered in the context of the challenging financial situation currently facing the Council.

Executive was informed that it had been agreed at a meeting of the four Group Leaders, that no increase in basic or Special Responsibility Allowances should be recommended to Council for 2009/10, in view of the financial circumstances facing the Council at this time. Councillor Mrs Morrish reported that the Liberal Group had proposed a 10% reduction in allowances. Councillor Edwards, seconded by Councillor Hannaford, proposed that Executive recommend to Council a zero increase in members’ allowances for 2009/10 and this was unanimously carried.

Councillor Prowse attended the meeting under Standing Order 44 and spoke in favour of no increase in allowances.

RECOMMENDED that:-

(1)        Council note the request of the Scrutiny Committee – Resources Budget Working Group to consider the recommendation of the Independent Remuneration Panel in the context of the challenging financial situation facing the Council and the recommendation of Executive that there should be no increase in basic or Special Responsibility Allowances for 2009/10; and

(2)        in the light of (1) above, Council consider and decide on the following recommendations of the Independent Remuneration Panel:  

(i)         the basic structure of the current members’ allowances scheme be retained for 2009/10, pending a more fundamental review including consideration of remuneration in the event of a shadow authority, when the outcome of the current review of local government in Devon is known, some of which may be determined by the Government in Implementation Orders;

(ii)        the basic allowance continue unchanged in 2009/10, updated using the index previously agreed (i.e. the annual local government staff pay award for the previous year);

            (iii)       subject to updating for inflation, the other Special Responsibility Allowances continue unchanged;

(iv)       the principle that any member qualifying for more than one Special Responsibility Allowance is paid the higher allowance only should be retained;

(v)        for the year 2009/10 Councillors’ basic and Special Responsibility Allowances should be updated in line with the annual local government staff pay award for 2008/09 (2.45%);

            (vi)                   that all Councillors be permitted to join the Local Government Pension Scheme, should they wish to do so, benefits to be based on both basic and Special Responsibility Allowances; 

(vii)      the Travel and Subsistence allowances provisions for staff continue to apply to Exeter City Councillors, where appropriate;

       (viii)      the current Dependants’ Carers’ Allowance scheme be maintained and the level of allowance, currently £5.73 per hour, continue to be linked to and updated in line with the minimum wage; and

       (ix)       the co-optees’ allowance payable to the co-opted members of the Standards Committee continue at £25 per session for 2009/10.

(3)        that the current Independent Remuneration Panel members be invited to continue with a view to commencing a phased replacement from 2010.

(Report circulated)