A REVIEW OF
MEMBERS’ ALLOWANCES FOR
MAIDSTONE BOROUGH COUNCIL
THE REPORT BY THE
INDEPENDENT REMUNERATION PANEL
MARCH 2015
South East Employers
Newfrith House
21 Hyde Street
Winchester
Hampshire
SO23 7DR
Index
____________________________________________________________
Foreword Page 3
Summary of Recommendations Pages
4-6
Methodology Page 7
Principles of the Review Page 8
Arriving at the Recommendations Pages 9-13
Recommendations Pages
13-14
Appendix One Page 15
Appendix Two Pages
16-18
Foreword
____________________________________________________________
This report has been produced for Maidstone Borough Council as part of the Council’s requirement to receive independent advice from its statutory advisory panel on members’ allowances. The Panel was established to review members’ allowances for both Maidstone Borough Council and Swale Borough Council. On this occasion Swale Borough Council did not participate as they did not have any issues that they wished to raise with the Panel. The membership of the Panel on this occasion was Chair, Mark Palmer (Development Director, South East Employers), Athos Louca (Invicta Chamber of Commerce) and Steve Golding (Independent Member).
The current Panel was asked to carry out a full review of the existing scheme of allowances as the Council moves towards a new governance system. The Panel met on 12th and 13th March 2015 and the summary of recommendations, together with the full report, is attached.
The Panel would like to thank those Members of the Council who completed the questionnaire, some 22 in all, and those Members who were interviewed and contributed to our discussions. Those who attended are set out in Appendix One.
Our thanks also to the Chief Executive and the Head of Policy and Communications for agreeing to be interviewed in order that their views on members allowances and the new governance arrangements could be taken into account.
Finally thanks to Sandra Marchant and
Caroline Matthews for providing their assistance throughout the two days that
the Panel met.
Mark Palmer
Chair
Independent Remuneration Panel
Summary of Recommendations
____________________________________________________________
This summary sets out the main recommendations. The considerations that have
led to these recommendations are set out in the full report.
The proposals are based on a review of background information, interviews with
Councillors and Officers of the Council, a review of oral and written
submissions and a review of benchmark information from other relevant
authorities in the region. At the forefront of the discussions was the
Council’s change in governance arrangements coming into force in May 2015.
The Panel took into account the statutory guidance relating to Members’
Allowances which falls within the remit of the Department of Communities and
Local Government (DCLG).
Summary of Recommendations
|
Allowance |
Current Amount |
Recommended Amount (*) |
Comments |
|
Basic Allowance |
£4,666 |
£4,900 (increase of 5% to reflect enhanced role) |
55 Members |
|
Leader of the Council/Chairman of Policy & Resources Comt |
£23,326 |
£18,661 (reduction of 20% to reflect the change in role) |
1 Member |
|
Chairman of Strategic Planning, Sustainability and Transport Comt |
Not applicable |
£7,464 (40% of Leader’s Allowance) |
Committee of 9 Members |
|
Chairman of Communities, Housing and Environment Comt |
Not applicable |
£7,464 (40% of Leader’s Allowance) |
Committee of 9 Members |
|
Chairman of Heritage, Culture and Leisure Comt |
Not applicable |
£3,732 (20% of Leader’s Allowance) |
Committee of 9 Members |
|
Chairman of Planning Committee |
£5,831 |
£7,464 (40% of Leader’s Allowance) |
Committee of 13 Members |
|
Chairman of Audit, Governance and Standards Comt |
Chair of Audit - £1,166, Chair of Standards - £1,166 |
£3,732 (20% of Leader’s Allowance) |
Committee of 5 Members |
|
Allowance |
Current Amount |
Recommended Amount (*) |
Comments |
|
Chairman of Licensing Comt |
£2,332 |
£3,732 (20% of Leader’s Allowance) |
Committee of 12 Members |
|
Group
Leaders Allowance |
£11,663 |
£11,663 |
Based on Composition of Party x £376 (£11,663 ÷ 31, 31 being the current composition of Members excluding the Leader’s party) |
|
Co-opted Members of Standards Comt |
£331 |
£331 |
To be confirmed |
|
Independent Person |
£700 |
£700 |
To be confirmed |
|
Chair of Licensing Panel Hearing |
£77 per session |
£77 per session |
1 Member |
|
Licensing Panel Hearing Members |
£58 per session |
£58 per session |
2 Members |
(*) – All rates subject to the percentage increase in line with the staff
indexation rise (with effect from 1st April each year).
Mayor’s Allowance – the Panel recommended that the Mayor’s Allowance
should stay the same, at £2,500.12 per annum
Deputy Mayor’s Allowance - the Panel recommended that the Deputy Mayor’s
Allowance should stay the same, at £1,000.15 per annum
Special Responsibility Allowance for Vice-Chairmen – the Panel
recommended that there should be no special responsibility allowance for
Vice-Chairmen. However, provision should be built into the Council’s
Constitution which allows for a Vice Chairman to be given the Chairman’s
allowance if the Chair is absent for a significant period of time.
Broadband Allowance - The Panel recommended
that a specific broadband allowance was no longer relevant as most households
have broadband as a matter of course.
Dependent Carer’s Allowance – The Panel recommended that the Dependent
Carer’s Allowance be paid on production of receipts as follows:-
Child-Care Provider - £7.85 per hour (Living Wage). The Living Wage would be
subject to a review every November by the Living Wage Foundation.
Specialist Carer Provider – Currently stands at £15-£20 per hour but must not
exceed Market Rates.
Reasonable travelling time can also be claimed by the carer.
Travel and Subsistence - the Panel recommended that Members continue to
be reimbursed for subsistence in the event that a meal is not provided in the
course of their Council duties as long as it is deemed reasonable and on
production of receipts.
Travelling expenses can also be claimed for train, taxi or car journeys. The
current rate for travelling by car is 45p per mile which is in line with HMRC
recommendations. Other than car journeys, travelling expenses should only be
paid on the production of receipts.
Mobile Phones – the Panel recommended that only the Leader receives a
mobile phone for their use on Council business.
Member Development & Training - the Panel felt that in the light of the
new governance arrangements, all Members should receive Member development and training.
Furthermore, in recognition of the increase to the basic allowance, all Members
should take up current and future training development opportunities to support
the revised governance arrangements. This would also assist Members to meet
the defined responsibilities and competencies within the new role descriptions and
responsibilities.
Date of Implementation
The recommendations relating to the Basic Allowance and Special Responsibility
Allowances, and all other recommendations, should be implemented with effect
from the Council’s Annual Meeting to be held on
23 May 2015.
Methodology
______________________________________________________________
The Panel met at the Town Hall in Maidstone for two days on 12th and
13th March 2015. The Panel meetings were held in private session so
as to enable the Panel to interview Councillors and Officers in confidence.
The list of the Elected Members and Council Officers that met with the Panel
are provided in Appendix One.
The Panel recognised that a lot of assumptions have had to be made in their
deliberations and would like to review the recommendations they have made in
eighteen months to two years, following the proposed review of the new
governance arrangements by the Council’s Democracy Committee. The Panel could
then consider any recommendations for changes to the Scheme of Allowances
arising from that review.
The
Panel worked within the set of principles for the proposed governance
structure:-
* to be cost neutral
* to increase Member participation in decision making
* to lead to more effective and efficient decision making
The
Panel were also keen to simplify the current Members Allowances Scheme in
preparation for the new governance structure wherever possible.
The Panel’s activity fell into four parts:-
One – Review of
background information, in particular, the current political structures and
composition of Council committees compared to the Committee structure that
Maidstone Borough Council would be adopting with effect from the Council AGM in
May 2015 under new governance arrangements. The Panel also looked at relevant
benchmarking information about members’ allowances elsewhere in Kent.
Two – The principle of a Special Responsibility Allowance for
Vice-Chairmen.
Three – Interviews with Councillors and Officers of the Council.
Four – Review of oral
and written submissions including an analysis of responses to the questionnaire
that was sent to all Councillors.
Five – Arriving at recommendations.
Whilst the Panel reviewed a wide range of available information and interviewed
a cross section of Councillors, it also considered responses received from
Members in relation to the questionnaire that had been circulated to all
Members prior to the Panel’s meeting. This ensured no Councillor was denied a
voice in the review process (see Appendix Two for a copy of the
questionnaire). Twenty two out of fifty five Councillors responded to the
questionnaire.
The Panel assessed the hierarchy of the new Committees and from that determined
the Special Responsibility Allowances that would be attributed to these. Some
Committees were not considered appropriate to attract any Special
Responsibility Allowance (SRA).
It is from these processes and deliberations that the Panel has arrived at the recommendations
set out in this report.
Principles
of the Review
______________________________________________________________
Before the Panel arrived at its recommendations it determined that its
deliberations should be underpinned by the following principles, which took
into account the current statutory provisions:-
* The recommended allowances should be of a sufficient level that they
would allow most people to consider becoming an elected Member
without undue financial hardship, whilst not being at such a level
that
allowances would become the primary reason for standing for Council.
* As far as possible the Panel would abide by the precedent and approach
of previous reviews, except where there was a clear and prescient
case
not to do so.
* The allowances should be seen as a contribution and recognition of
the time and skills of councillors, not as an equivalent to a formal
job evaluation exercise and salaries.
* A healthy and resourced Opposition is important in maintaining an
appropriate balance within local democracy.
* Any recommendations should be based on a logical and transparent
construction and arrived at in a way that is simple to understand.
* Sensitivities of cost of implementation of any recommendations
should be borne in mind.
The
Panel has laid out a synopsis of its deliberations in this report to assist
Members and the public to understand its approach. Following its
deliberations, the Panel concluded that there was an appetite for small changes
to the current scheme of allowances at Maidstone.
Whilst the Panel’s recommendations are not mandatory, it is hoped that if the
Council disagrees with the actual figures recommended, that the Council would
accept the Panel’s logic. The recommendations presented in this report
represent the view of the Panel and not the official view of Maidstone Borough
Council.
Arriving
at the Recommendations
______________________________________________________________
Basic Allowance
The Panel noted the statutory guidance it must pay regard to, in
particular, that the authority’s scheme of allowances must include provision
for a Basic Allowance that is payable at an equal flat rate to all Members.
The Panel noted that in response to the question “Is the Basic Allowance
appropriate?”, 45% of those who responded to the questionnaire said “Yes”. In
the interviews conducted with Councillors the Panel noted that Councillors felt
it should be slightly increased in the light of the new arrangements and that
it would in turn attract new councillors. They were, however, of the opinion
that being a Councillor should not give undue financial hardship.
The Panel were in agreement with the Members’ views that the basic allowance
should be increased to reflect the change in governance arrangements as Members
will have increased decision making responsibilities and will need to increase
their knowledge. They therefore felt that a small increase should be made to
the basic allowance.
Special Responsibility Allowances
The Panel was under a duty to recognise the following statutory guidance in
arriving at recommendations for Special Responsibility Allowances (SRAs):
Special Responsibility Allowance (SRA) may be paid to those members of the
council who have significant additional responsibilities, over and above the
generally accepted duties of a councillor. These special responsibilities must
be related to the discharge of the authority’s functions.
These are important considerations for local authorities. If the
majority of members of a council receive a special responsibility allowance the
local electorate may rightly question whether this was justified. Local
authorities will wish to consider very carefully the additional roles of
members and the significance of these roles, both in terms of responsibility
and real time commitment before deciding which will warrant the payment of a
special responsibility allowance.
It
does not necessarily follow that a particular responsibility, which is vested
to a particular member, is a significant additional responsibility for which a
special responsibility allowance should be paid. Local authorities will need
to consider such particular responsibilities very carefully. Whilst such
responsibilities may be unique to a particular member it may be that all or
most members have such responsibility to varying degrees. Such duties may not
lead to a significant extra workload for any one particular member above
another. These sorts of responsibilities should be recognised as a time
commitment to council work, which is acknowledged within the basic allowance
and not responsibilities for which a special responsibility allowance should be
recommended.
The
majority of the Councillors interviewed were strongly of the view that the
Special Responsibility Allowance for the Leader should be reassessed in
recognition of the fact that whilst the level of work will remain the same, the
Leader, under the new Committee model, would no longer have executive authority
which it had under the Leader/Cabinet model.
In response to the question “Would you like to see changes made to the SRAs?,
68% of all respondents said ‘Yes’, 32% said ‘No’. There were some suggestions
made by Members in terms of what positions should be paid a SRA and the
associated hierarchy of the Committees which the Panel largely concurred with.
The Panel felt that in terms of the Committees that should receive a Special
Responsibility Allowance, there was a clear hierarchy structure, and they based
their determination in the level of SRA on this, which is illustrated as
follows:-
|
|
|
Council |
Top Tier |
|
|
|
|
P & R Comt |
Second Tier |
|
|
|
SPS&TC |
CH&EC |
PC |
Third Tier |
|
|
HC&LC |
AG&SC |
LC |
Fourth Tier |
|
Remaining Committees not remunerated – Fifth Tier |
||||
Key:SPS&TC –
Strategic Planning, Sustainability and Transport Committee
CH&EC – Communities, Housing and Environment Committee
PC – Planning Committee
HC&LC – Heritage, Culture and Leisure Committee
Audit, Governance and Standards Committee
LC – Licensing Committee
Overall,
the number of Special Responsibility Allowances had decreased from twenty four
to seventeen.
Leader of the Council/Chairman of Policy & Resources Committee
The Panel recognised that the role of the Leader of the Council under the
new governance arrangements would change, specifically that the decision making
powers would not be as strong as they were under the Executive Model.
Of those Members interviewed, it was generally envisaged that the Leader’s role
would not be as significant under the new governance arrangements, although it
could be an onerous one in terms of being Chairman of Policy and Resources
Committee. It was, however, accepted that this may not become apparent until
the new arrangements had been in operation for a while.
Chairmen of Strategic Planning, Sustainability and Transport Committee;
Communities, Housing and Environment Committee; and Planning Committee
The Panel put these as third tier Committees in the belief that their responsibilities
were of greater significance than those on the fourth tier.
Chairmen of Heritage, Culture and Leisure Committee; Audit, Governance and
Standards Committee; and Licensing Committee
The Panel put these as fourth tier Committees in the belief that their
responsibilities were of greater significance than those on the fifth tier but
of less significance than those on the third tier.
Cobtree Sub Committee, Queens Own Royal West Kent Regiment Sub Committee;
Local Plan Sub Committee; Employment & Development Panel; Democracy
Committee; Joint Transportation Board; Charity Committees: Bentlif, Relief in
Need, Brenchley and Gunsley; and Planning Referrals
The Panel put these as fifth tier Committees in the belief that their
responsibilities were of less significance than all the other Committees and
did not therefore afford a Special Responsibility Allowance.
Group Leaders Allowance
The Panel submitted a proposal at their January meeting that the Group Leaders
Allowance be based on the composition of the relevant political parties. This
was subsequently agreed by Council at its meeting in February 2015.
The Panel therefore have no proposals to revise their recommendation.
Co-Opted Members of Standards Committee
The Panel did not consider that the current remuneration for Co-Opted Members
of Standards Committee should change at this stage.
Independent Person
The
Panel did not consider that the current remuneration for the Independent Person
should change at this stage.
Chair of Licensing Panel Hearing
The Panel did not consider that the current remuneration for the Chair of
Licensing Panel Hearings should change at this stage.
Licensing Panel Hearing Members
The Panel did not consider that the current remuneration for the two Members of
the Licensing Panel Hearings should change at this stage.
Mayor and Deputy Mayor Allowances
The
Panel did not consider that the current remuneration paid to the Mayor and
Deputy Mayor should change at this stage.
Vice-Chairman Allowance
The Panel considered fully the proposal put forward by the Licensing Committee
for all Vice-Chairmen to be paid a Special Responsibility Allowance. They considered
benchmarking statistics from some neighbouring authorities and based on that
evidence and the fact that there was no evidence yet of the amount of work that
a Vice-Chairman would contribute under the new system, they felt that this
should be reviewed when the Panel carry out a further review in eighteen months
to two years’ time when the new system has had time to settle in.
However, provision should be built into the Council’s Constitution which allows
for a Vice Chairman to be given the Chairman’s allowance if the Chair is absent
for a significant period of time.
Broadband Allowance
The Panel thought that a specific broadband allowance was no longer relevant as
most households have broadband as a matter of course.
Dependent Carer’s Allowance
Dependent Carer’s Allowance to be paid on production of receipts as follows:-
Child-Care Provider - £7.85 per hour (Living Wage). The Living Wage would be
subject to a review every November by the Living Wage Foundation.
Specialist Carer Provider – Currently stands at £15-£20 per hour but must not
exceed Market Rates.
Reasonable travelling time can also be claimed by the carer.
Following comments received from Members, the Panel were mindful that this
needed to be publicised more as it could be an integral consideration for
anyone thinking about becoming a Councillor.
Travel and Subsistence
The Panel recommended that Members continue to be reimbursed for subsistence in
the event that a meal is not provided in the course of their normal Council
duties as long as it is deemed reasonable and on production of receipts.
Travelling expenses can also be claimed for public transport, taxis or car
journeys. The current rate for travelling by car is 45p per mile which is in
line with HMRC recommendations. Claims can only be made for travelling whilst
on approved Council business.
Mobile Phones
The Panel were made aware that the Cabinet Member positions did attract the
provision of a mobile phone for Council use. It was recommended that only the
Leader’s position should attract a mobile phone for Council use in the future.
Member Development & Training
The Panel felt that in the light of the new governance arrangements, all
Members should receive Member development and training. Furthermore, in
recognition of the increase to the basic allowance, all Members should take up
current and future training development opportunities to support the revised
governance arrangements. This would also assist Members to meet the defined
responsibilities and competencies within the new role descriptions and
responsibilities.
The Panel did discuss the possibility of Members’ Special Responsibility
Allowances being linked to performance but it was felt that this should not be
considered at this time, particularly as the new arrangements were not in place
yet.
Indexation Rise
The Panel put forward a recommendation following their meeting in January 2015
that Members receive an indexation rise in line with whatever the indexation
rise is for staff. This was approved by Council at its meeting in February and
therefore all the figures set out above should take into account any indexation
rise with effect from 1st April each year.
Recommendations
____________________________________________________________
(1)
That
the Basic Allowance for Councillors be increased by 5% to take
into account the enhanced role that they will have moving forward to
the new committee structure;
(2)
That
the Special Responsibility Allowance for the Leader of the Council/Chairman of
Policy and Resources Committee be reduced by 20% to take into account the change
in role;
(3)
That
the Chairmen of Strategic Planning, Sustainability and Transport Committee;
Communities, Housing and Environment Committee; and Planning Committee be given
a Special Responsibility Allowance of £7,464 p.a. (40% of the Leader’s
Allowance);
(4)
That
the Chairmen of Heritage, Culture and Leisure Committee; Audit, Governance and
Standards Committee and Licensing Committee be given a Special Responsibility
Allowance of £3,732 p.a. (20% of the Leader’s Allowance);
(5)
That
the Group Leaders Allowance stay the same as previous at £11,663 per annum,
split between the Group Leaders dependent on the current composition;
(6)
That
the remunerations for the Co-Opted Members and Independent Person for Standards
Committee stay the same;
(7)
That
the remunerations for the Chair and Panel Members of the Licensing Panel
Hearings stay the same;
(8)
That
the Mayor and Deputy Mayor’s Allowance stay the same;
(9)
That
there should be no special responsibility allowance for Vice-Chairmen but this
should be reviewed when the Panel meet again in eighteen months to two years
time;
(10) That the broadband
allowance cease to exist;
(11) That the Dependent
Carer’s Allowance be determined as follows:-
Child-Care Provider - £7.85 per hour (Living Wage). The Living Wage would be
subject to a review every November by the Living Wage Foundation.
Specialist Carer Provider – Currently stands at £15-£20 per hour but must not
exceed Market Rates.
Reasonable travelling time can also be claimed by the carer.
Following comments received from Members, the Panel were mindful that this
needed to be publicised more as it could be an integral consideration for
anyone thinking about becoming a Councillor;
(12) That the Travel and
Subsistence scheme stay the same;
(13) That only the
Leader of the Council be given a mobile phone for
Council use;
(14) That in the light
of the new governance arrangements, Members should receive Member development
and training. In addition, they should take up current and future training development
opportunities to support the revised governance arrangements; and
(15) That the new Democracy Committee carry out an evaluation of the new system in due course and that the Members Allowance would be reviewed by the Panel in the next eighteen months to two years.
Appendix
One
______________________________________________________________
Members and Officers interviewed by the Panel
* Councillor Mrs Annabelle Blackmore, Leader of the Council
* Councillor Mrs Fran Wilson, Leader of the Liberal Democrats Party
* Councillor Dan Daley, Maidstone Borough Council
* Councillor Denise Joy, Maidstone Borough Council
* Councillor Clive English, Maidstone Borough Council
* Councillor Fay Gooch, Leader of the Independent Party
* Councillor Malcolm McKay, Leader of the Labour Party
* Councillor Alistair Black, Maidstone Borough Council
* Councillor Martin Cox, Maidstone Borough Council
* Councillor Eddie Powell, Leader of the UKIP Party
* Councillor Mike Cuming, Maidstone Borough Council
* Councillor Mrs Parvin, Maidstone Borough Council
* Councillor Richard Ash, Maidstone Borough Council
* Councillor Mrs Grigg, Maidstone Borough Council
* Alison Broom, Chief Executive, Maidstone Borough Council
* Angela Woodhouse, Head of Policy & Communications, Maidstone
Borough Council
Appendix Two
______________________________________________________________
Members Allowances -
Questionnaire
In accordance with Government regulations, a review of payments to councillors is to be undertaken by an independent panel every 4 years.
Your views are vital in allowing the panel members to assess an appropriate level of allowances. As part of this process, I would be grateful if you could take a few minutes to answer the following questions. Don’t worry if you feel unable to answer some of the questions, just leave that section blank. I can assure you that the individual views expressed by councillors will remain confidential and will only be disclosed to the members of the panel.
Please return your completed questionnaire to me by Friday 6 March 2015.
Thank you.
Caroline Matthews
Democratic Services Officer
01622 602743
|
__ hours
Role ………………………………….. |
|
|
|
a) Attending meetings (including travelling) |
__ hours
|
|
b) Community representation |
__ hours
|
|
c) Case work (dealing with particular issues in your ward) |
__ hours |
|
d) Research |
__ hours
|
|
e) Other (please specify)
|
__ hours
|
Is this figure broadly right for the role of an average constituency councillor?
If not, then what do you feel would be the correct number of hours to fulfil the role in an effective and efficient manner?
|
YES / NO (delete as appropriate)
__ hours |
|
YES / NO
If YES, please provide details
|
|
YES / NO
If NO, then what do you feel would be an acceptable % discount?
|
If NO, should it be higher or lower?
If you are able, please indicate an appropriate level
|
YES / NO
HIGHER / LOWER
£
|
|
|
|
· Leader of the Council |
£23,326
|
|
· Cabinet members |
£11,663
|
|
· Chairman of the Overview and Scrutiny Committees |
£4,665
|
|
· Chairman of the Planning Committee |
£5,831
|
|
· Chairman of the Licensing Committee |
£2,332
|
|
· Chairman of the Standards Committee |
£1,166
|
|
· Chairman of Audit Committee |
£1,166 |
|
· Group Leaders |
£11,663*
|
|
· Co-optee Allowance |
£331
|
|
Note: SRAs are subject to change with the new governance arrangements |
*Shared between each Group Leader on basis of number of members in Political Group |
|
|
|
|
Would you like to see any changes made to these allowances?
|
YES / NO
If YES, please provide details
|
|
Would you like to see any additional SRAs introduced other than those that will arise from the new Governance arrangements?
|
YES / NO
If YES, please provide details
|
|
8. Carer’s Allowance
The Dependent Carer’s Allowance is required to be set to at least the minimum wage level, currently £6.50 per hour. Do you think this rate should be increased?
|
YES / NO
If YES, please can you suggest a new amount?
|
|
9.
Travel and Subsistence The
current scheme is attached.
|
YES/NO
If YES, please can you provide details here:
|
If you have any other comments on allowances, please include details below. Please add additional pages as necessary.
If required, would you be prepared to be interviewed by the independent panel? YES / NO
Name ________________________
Councillor
Dated ________________________