Councillors allowances – their “pay”

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

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

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

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

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)

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]

On the rise…despite recession Between : 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

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

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

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

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

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”

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

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

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

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

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

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. Student assignment