Agenda item

The Director of Legal and Governance Services and the Executive Member for Finance and Governance Services submitted a report, the purpose of which was that:

 

1. Council consider the recommendations proposed by the Independent Panel on Members’ Remuneration outlined in their report at Appendix 1

 

2. Council adopt the proposed Members Scheme of Allowances for 2021/22.

 

Members were advised that the Council was required under Section 18 Local Government and Housing Act 1989 and The Local Authorities (Members' Allowances) (England) Regulations 2003 to publish a Members Scheme of Allowances on an annual basis and to have due regard to the recommendations of the Independent Panel on Members Remuneration.

 

The Director of Legal and Governance Services outlined the purpose of the report and the options available to members.

 

Councillor High thanked the Independent Remuneration Panel for their role in ensuring that allowances were reviewed regularly. He stated that he was honoured that the Panel recognised his commitment to his role as Deputy Mayor. Due to the current economic climate, both locally and nationally, Councillor High stated that he did not think it was the appropriate time to propose any increases in Special Responsibility Allowances, and for that reason, he would be voting against the proposal.

 

Councillor Storey stated that the Labour Group had resolved to vote against the proposals. The responsibilities of Executive Members was at the discretion of the Mayor and an increase in the responsibilities of two of the Executive Members had led to a proposal from the Independent Remuneration Panel, to increase the SRA of the two Executive Members. Given issues with pay claims for nurses, the fact that unemployment rates were currently at 5%, 693,000 people had lost their jobs and the fact that the Federation of Small Businesses had indicated that many small businesses would be forced to close because of the pandemic, he stated that in his view, it was inappropriate to accept a pay increase, and for that reason, allowances should remain at the current rate.

 

Councillor High reiterated that any proposals put forward regarding members remuneration were the responsibility of the Independent Panel on Members Remuneration, not the Mayor.

 

Councillor Storey clarified that the content of Executive portfolios was the decision of the Mayor. The Remuneration Panel had decided that an increase in responsibilities equated to an increase in the Executive Member portfolios SRA. Councillor Storey clarified that he did not believe that the Mayor or Deputy Mayor had any involvement in the decision to increase Executive Member SRAs.

 

Councillor Rathmell stated that he would be voting against any proposed increase in members’ allowances. Residents were facing an increase in Council Tax, businesses were failing and many people had lost their jobs. He stated that it would be an insult to the NHS if members accepted an increase and as a consequence, he would like to see the allowances retained at the 2020/2021 rates and that members reject the increase in line with the Pay Policy statement.

 

Councillor Cooper stated that he would be voting against the proposals. He stated that there should be a fixed rate for all members.

 

Councillor Mawston stated that the Middlesbrough Independent Group would be voting against the proposals.

 

Councillor Cooke queried whether the three options that were open to members to vote on were to accept, reject or renew the current scheme agreed in October 2019.

 

The Director of Legal and Governance Services clarified that the Panel’s recommendations dealt with an increase to the two Executive Members (Deputy Mayor and Executive Member for Communities and Education) SRA of £1000 and a proposal to increase the basic allowance for all members by £449, incrementally over 4 years from 2018 – 2022, plus an increase in line with any staff pay awards, which was agreed in 2019.

 

The Independent Panel’s proposals overall, included the increases to the two Executive Member SRAs and the increase in the basic allowance for all members. The other option that was available to members, was to agree the scheme that was agreed in 2019 and this included a proposal to increase the basic allowances for all members by £449 on an incremental basis but this did not include the proposed increase in the 2 Executive Member SRA’s.

 

The Director of Legal and Governance Services stated that members had indicated that they were uncomfortable with increases in remuneration, and if this included any increase, then the two options that were currently available to members would not be appropriate.

 

The Director of Legal and Governance Services indicated that members should vote first on the Panel’s recommendations.

 

Councillor Smiles stated that she would be voting against the proposals. Given the back drop of Covid. Councillor Smiles indicated that it would not be appropriate to agree any increases in Executive Member SRAs or members allowances, in general.

 

Councillor Bell stated that the two Executive SRA’s should be increased by £1000. He also commented on Chief Officer pay awards.

 

Councillor Garvey requested that the Director of Legal and Governance Services outline the role of the Independent Panel on Members’ Remuneration.

 

The Director of Legal and Governance Services advised that the Panel was completely independent of the Council. The Panel did not know anything about the personalities involved and they took an objective view of all the roles and evaluated the work involved in carrying out the role when deciding whether the role merited a Special Responsibility Allowance and what level the SRA should be.

 

Councillor Branson indicated that he would be voting against the proposals as in his view members should not be accepting any increases in remuneration.

 

Councillor Rathmell proposed an amendment to the report so that that all three elements of the report be rejected and that a freeze on the 2020/2021 rates of allowances be instated.

 

Councillor Wilson seconded the proposal.

 

The Director of Legal and Governance Services clarified the amendment and invited members to vote on it.

 

Following a vote the amendment to the report was CARRIED.

 

Members voted on the amended recommendation

 

The amended recommendation was approved as follows:

 

That all three elements of the submitted report be rejected and that a freeze on the 2020/2021 rates of members allowances be instated.