Agenda item

To consider the report of the Independent Remuneration Panel.

Agreed:

RECOMMENDED to Council that:-

(1)  the basic structure and principles of the current Members’ Allowances scheme be retained for 2025/26;

(2)  the principle that any Member qualifying for more than one Special Responsibility Allowance (SRA) is paid the higher allowance only, be retained;

(3)  the Councillors’ Basic and Special Responsibility Allowances including the Lord Mayor and Deputy Lord Mayor’s Expenses Allowances, continue to be linked and updated in line with the national pay awards applied to staff (under the Green Book arrangements) for the previous year, (a lump sum payment of £1,290 was agreed for the period 2024/25 effective from April 2024). As this was a lump sum rather than a percentage increase across the board the Panel considered that it was appropriate to use the median percentage pay increase for Exeter City Council staff of 4% as a benchmark for the Basic Councillor Allowance;

(4)  the principle that Special Responsibility Allowances be paid to no more than 50% of the overall number of Councillors continue to be kept under review and adhered to where possible;

(5)  the current Dependants’ Carers’ Allowance scheme be maintained, with the continuation of the level of allowance matching the hourly Living Wage as applicable from April of each year. In the case of Members who need specialist care for a child or adult dependant, a higher rate, of up to £25 per hour or part thereof, can be agreed by negotiation in advance with the Democratic Services Manager;

(6)  the sum of £50 be paid to the Independent Persons affiliated to the Audit and Governance Committee for up to four hours work, and £100 for four hours and over, payable to each of the two Independent Persons (up to a maximum of £500 per person in any one year) be retained; and

(7)  travel and subsistence allowances available for staff continue to apply to Exeter City Councillors, where appropriate.

Reason for Decision: As set out in the report.

The Executive received the report of the Council’s Independent Remuneration relating to the level of Members’ Allowances for the period 2024/25, as required by the Local Authorities (Members’ Allowances) (England) Regulations 2003 and made recommendations the allowance to be paid to Members. The Panel had met in October 2024, to discuss the level of Members’ Allowances

for the period 2025/26 and had considered a number of matters as outlined in the report.

The Chair of Independent Remuneration Panel, was in attendance and made particular reference to:-

·    the basic allowance increase each year was the same figure as the local government pay award, and Exeter City Council’s allowances were in-line with other local authorities in the area;

·    the panel recommended that Exeter continue to remain tied to the local government pay award;

·    Exeter City Council’s finance team had worked out the average figure of 4% which was contained in the report;

·    on the employers National Insurance, the Chancellor's reduction to the threshold to 5000 brought all Councillors into the employer requirement for National Insurance, which had been budgeted for in Exeter;

·    the carers allowances in Exeter was very good, but had received very little take-up and consideration of advertising it more would be beneficial; and

·    it was suggested that a full review of allowances be undertaken next year, and all Members would be invited to speak to the panel, including any who were not intending stand for election in 2026;

During the discussion, an Executive Member thanked the Chair of Independent Remuneration Panel and Officers for the work undertaken and ensuring fairness with the allowances.

Councillor Mitchell spoke on the item as opposition group leader and commented that it would be beneficial to also include former Councillors as part of the full review, to comment on why they left the authority given the recent high turnover of Members.

The Leader advised that it would only be appropriate to enquire if there were any

financial reasons for why formers Members did not stand again for election.

The Leader moved the recommendations, which were seconded by Councillor Wright, voted upon, and CARRIED unanimously.

RECOMMENDED to Council that:-

(1)  the basic structure and principles of the current Members’ Allowances scheme be retained for 2025/26;

(2)  the principle that any Member qualifying for more than one Special Responsibility Allowance (SRA) is paid the higher allowance only, be retained;

(3)  the Councillors’ Basic and Special Responsibility Allowances including the Lord Mayor and Deputy Lord Mayor’s Expenses Allowances, continue to be linked and updated in line with the national pay awards applied to staff (under the Green Book arrangements) for the previous year, (a lump sum payment of £1,290 was agreed for the period 2024/25 effective from April 2024). As this was a lump sum rather than a percentage increase across the board the Panel considered that it was appropriate to use the median percentage pay increase for Exeter City Council staff of 4% as a benchmark for the Basic Councillor Allowance;

(4)  the principle that Special Responsibility Allowances be paid to no more than 50% of the overall number of Councillors continue to be kept under review and adhered to where possible;

(5)  the current Dependants’ Carers’ Allowance scheme be maintained, with the continuation of the level of allowance matching the hourly Living Wage as applicable from April of each year. In the case of Members who need specialist care for a child or adult dependant, a higher rate, of up to £25 per hour or part thereof, can be agreed by negotiation in advance with the Democratic Services Manager;

(6)  the sum of £50 be paid to the Independent Persons affiliated to the Audit and Governance Committee for up to four hours work, and £100 for four hours and over, payable to each of the two Independent Persons (up to a maximum of £500 per person in any one year) be retained; and

(7)  travel and subsistence allowances available for staff continue to apply to Exeter City Councillors, where appropriate.