Councillors allowances – their “pay”

3. Councillors allowances – their “pay”

4. How much…! • Basic allowance… • £10,139 • £12,003 • £15,956 • £16,267 • £3,444 • £9,418

5. How allowances work • All councillors are unsalaried but all are eligible for allowances • Reflect the voluntary nature of being a councillor • Reflect the time spent by councillors attending meetings; helping constituents; fulfilling other council duties • “People do not enter public service to make their fortune” – Department for Environment, 1998

6. Types of allowance • Basic allowance: Flat rate payment given to all elected councillors from time of election • Special Responsibility Allowance Additional payment (on top of basic) given to those with positions of responsibility

7. How allowances are set • Level of allowances is determined by each authority • By law, rates must be recommended by Independent Remuneration Panel > Panel made up of at least 3 independent representatives – no councillors > Makes recommendations on basic and special responsibility allowances > But councillors have right to vote on recommendations (can reject/change/approve) > Proposed allowances must be advertised/published in formal notice – usually newspaper

8. Other allowances • Councils may also pay other allowances: > Childcare and Dependent Carers’ allowance > Travel and subsistence allowance > Meetings allowance (usually only for lay members appointed to committees, not councillors)

9. How much? Examples • Leader of Kent county council: £44,300 • KCC cabinet member: £26,795 • KCC basic allowance: £13,920 • Leader Leicester City Council: £45,590 • Leader Haringey Council:£31,590 • Leader, Hammersmith Council: £35,763 [NB all leaders also entitled to claim basic allowance]

14. On the rise…despite recession Between 2010-12: • Bolton Borough – up 28% to £3,052 (BA) • Mid Devon District – up 23% to £4,500 • Tunbridge Wells – up 12% to £5,279 • Source: Taxpayers Alliance, Aug 2012

16. Councillors conduct…ain’t misbehaving… • As elected representatives, councillors expected to display probity • So, all councils must adopt a Code of Conduct, which all members are bound by and must abide by • Broadly, sets out principles of acceptable conduct/behaviour and how to avoid bringing council into disrepute

17. Codes of Conduct – key requirements Councillors must: • Follow code when representing the authority • Be aware of what personal and prejudicial interests are • Keep the Register of Interests up to date • Treat others with respect • Register gifts and hospitality worth more than £25

18. Personal interests • Councillors must declare such an interest during a council meeting where: • Issue affects their well-being or finances, or those of family members or close associates more than other people who live in area • Personal interests must be registered in council’s Register of Interests

19. Personal Interests - examples • Where meeting is discussing or proposing anything that involves a contract for goods, works or services between the council and either: > the councillor > a firm where councillor is involved as partner or paid director

20. Prejudicial interests • More stringent: • Where the interest affects the councillor; his/her family; or close associates in the following ways: > their finances, or regulatory functions such as licencing or planning And which…. > “reasonable member of public would believe might harm or impair ability to judge the public interest”

21. Prejudicial Interests Councillors with prejudicial interests must: • Declare the interest and what it is • Leave the meeting – unless there are members of public who are permitted to make representations. If so, cllrs can stay

22. Prejudicial Interests - exemptions • An interest is not prejudicial where it is an interest in: • >> Allowances or expenses • >>Ceremonial honours given to councillors • >> Council tax setting • >> Council housing where interest is that of tenant/leaseholder

24. Register of Interests • Under each council’s Code of Conduct: • Councillors must register in a publicly available document interests such as: • > Directorships of firms/companies • > Ownership of land/buildings • > Shareholdings in companies • > Membership of clubs/societies • > Gifts or hospitality valued at more than £25

25. Standards Committees • Monitors councillors conduct • Ensures members are keeping to code of conduct • Address any concerns over unethical conduct • Promote high standards of conduct • Help/advise members on how to observe code of conduct • Complaints over conduct can be made by any member of public

26. Penalties for failures to declare interests • Criminal conviction (punishable with a fine of up to £5,000) • Disqualification from office for up to five years • Complaints investigated by local standards committees 

27. Student assignment Student assignment Choose a council. • How much overall does it spend on councillors allowances (find latest available figures)? • What is the basic allowance paid to all councillors? • How much does the council leader get paid? • How much do cabinet members receive? • Are any other allowances paid, such as opposition party allowances? Give examples.