Agenda item

To receive the report and recommendations of the Independent Remuneration Panel following their annual review of the Members’ Allowances Scheme.

RECOMMENDATION:  The Independent Remuneration Panel recommends to Council that:

(1)       The time contributed component of the Basic Allowance be increased by 1% to reflect the increase in Officer pay;

(2)       There be no change made to the multiples of the Special Responsibility Allowances paid to those roles as set out in the current Members’ Allowances Scheme;

(3)       The Deputy Executive Members continue to be paid an SRA of £2,000 each as set out in the current Members’ Allowances Scheme;

(4)       That there be no change in the rate payable for the Childcare and Dependent’s Carers’ Allowance as set out the current Members Allowances Scheme in that it be set at the National Minimum wage, whatever that may be in the future, and that where there are exceptional circumstances, any increase in this allowance be approved by the Council’s Monitoring Officer, in consultation with the Chairman of the Panel;

(5)       The £500 component of the Basic Allowance for the provision of IT, communication and home office should continue to be claimed only by those Members who provide facilities which allow constituents and Officers to communicate with them by e-mail and the self-certification process be continued.

(6)       The £500 component of the Basic Allowance for out of pocket expenses should continue.

(7)       As part of their induction, Members continue to receive training in relation to remuneration and how the Members’ allowances scheme and expenses works;  

(8)       It be noted that Members are no longer eligible to join the Local Government Pension Scheme.

(9)       Members’ Allowances should not be index-linked.

(10)     That the Terms of Reference of the Panel be amended to include having the authority to consider any request from a Local Authority Trading Company owned by Wokingham Borough Council for the Panel to advise them on the level of remuneration payable by that company to its Member Non-Executive Directors.

The Council received and considered a report from the Independent Remuneration Panel, as set out on Agenda pages 29 to 46, following their annual review of the Members’ Allowances Scheme.

David Jones, Chairman of the Independent Remuneration Panel,addressed the meeting.  He paid tribute to his colleagues on the Panel: Nicky Measures, Malcolm Saffin, Barry Cochrane and Brian Shearing.  He also thanked Susan Coulter, Senior Democratic Services Officer and Kevin Jacob, Principal Democratic Services Officer, for the guidance and administrative support that they had provided to the Panel.

In presenting the report, David Jones highlighted the following points:

·           The Panel had met four times, had reviewed extensive information supplied to it and met a number of Councillors including both the Conservative and Liberal Democrat Group Leaders;

·           The Panel were recommending that the time contributed component of the Basic Allowance be increased by 1% to reflect increases in Officer pay. This would take the total Basic Allowance to £7,552;

·           That in future any changes to the time contributed element of the Basic Allowance should mirror in any increases in Officer pay, but that an automatic escalator should not be introduced at the current time;

·           That it was felt that the role of Deputy Executive Member was now fully established and payment of a Special Responsibly Allowance should continue;

·           That there should not be any increase in the amount of any Special Responsibility Allowance;

·           That there should be no increases to the IT allowance and amount for out of pocket expenses;

·           That there be no changes to the existing arrangements for Childcare and Dependent’s Carers’ Allowance in that it be linked to the national minimum wage;

·           That the Panel wished to reiterate strongly that expenses and allowances were rights which Members were entitled to without fear or prejudice;

·           That the remit of the Panel be expanded to include having the authority to advise the Council’s companies on the level of remuneration paid to the Councillors who were Non-Executive Directors. This issue had been given thorough consideration and it was the view of the Panel that its role should be expanded to include this area on the grounds of transparency and the Panel’s role as a body independent to the Council.

Councillor Keith Baker thanked the Panel.  He commented that he was pleased to support the Panel’s recommendations as they reflected a number of suggestions he had made including the informal linkage between increases in the rates of Officer pay and allowances for Councillors and the expansion of the remit of the Panel to consider the remuneration of Councillor Non-Executive Directors.

Councillor Prue Bray thanked the Panel for its work. She commented that she supported the remarks of Councillor Keith Baker and stressed that although the final decision on allowances was the Council’s under legislation, the Council had a report prepared by an independent panel before it and that this was as close to a situation where councillors did not set their own allowances as possible.  

It was proposed by Councillor Keith Baker that the recommendations set out in the Independent Remuneration Panel report be agreed.  This was seconded by Councillor Michael Firmager.

Upon being put to the vote it was

RESOLVED: That:

1)     The time contributed component of the Basic Allowance be increased by 1% to reflect the increase in Officer pay;

2)     There be no change made to the multiples of the Special Responsibility Allowances paid to those roles as set out in the current Members’ Allowances Scheme;

3)     The Deputy Executive Members continue to be paid an SRA of £2,000 each as set out in the current Members’ Allowances Scheme;

4)     That there be no change in the rate payable for the Childcare and Dependent’s Carers’ Allowance as set out in the current Members Allowances Scheme in that it be set at the National Minimum wage, whatever that may be in the future, and that where there are exceptional circumstances, any increase in this allowance be approved by the Council’s Monitoring Officer, in consultation with the Chairman of the Panel;

5)     The £500 component of the Basic Allowance for the provision of IT, communication and home office should continue to be claimed only by those Members who provide facilities which allow constituents and Officers to communicate with them by e-mail and the self-certification process be continued;

6)     The £500 component of the Basic Allowance for out of pocket expenses should continue;

7)     As part of their induction, Members continue to receive training in relation to remuneration and how the Members’ allowances scheme and expenses works;  

8)     It be noted that Members are no longer eligible to join the Local Government Pension Scheme;

9)     Members’ Allowances should not be index-linked;

10)  That the Terms of Reference of the Panel be amended to include having the authority to consider any request from a Local Authority Trading Company owned by Wokingham Borough Council for the Panel to advise them on the level of remuneration payable by that company to its Member Non-Executive Directors.