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ITEM CC8

COUNTY COUNCIL – 9 SEPTEMBER 2003

MEMBERS' ALLOWANCES

Report by the Assistant Chief Executive & Monitoring Officer

Introduction

  1. The Council last reviewed the allowances paid to members in October 2001, in the light of the recommendations of the Independent Remuneration Panel set up in accordance with the requirements of the Local Government Act 2000. The review was carried out anticipating the new political management arrangements that came into effect from 5 November 2001.
  2. As required by new Regulations issued by the Government in May 2003 the Independent Remuneration Panel has reconvened to review the existing allowances and to make recommendations on possible changes. These include significant amendments introduced by the new Regulations, notably: activation of the provisions enabling basic and special responsibility allowances to be made pensionable; a new form of allowance payable to co-optees; local determination of travel and subsistence allowances; and indexation of allowances.
  3. Panel Report

  4. The Panel’s recommendations are set out in a separate paper, circulated herewith.
  5. The provisions which the Council agrees in the light of the Panel’s recommendations will need to be incorporated in a new formal Scheme of Allowances, with effect from the date on which the changes are implemented. This must be not later than 31 December 2003.
  6. The Panel has also made recommendations on two ancillary matters: the adoption of "role descriptions" for councillors and the introduction of a system of annual reports by individual councillors. It is suggested that if the Council is agreeable in principle, officers should be asked to draw up more detailed proposals for how these recommendations might be implemented in consultation with the Councillor Reference Group, and to report back to a future Council meeting.
  7. Financial Implications

  8. The Basic and Special Responsibility Allowances recommended by the Panel are estimated to require financial provision in a full year of £704,000, plus an additional £50,000 if the Pension Scheme provisions were adopted and, say, two thirds of all eligible councillors chose to join the Scheme. The travel and subsistence allowance proposals are estimated to be cost neutral, at around the current level of £48,000.
  9. The total estimated requirement for the recommended allowances is therefore some £802,000 in a full year against agreed existing budgetary provision of £665,000. If the changes were introduced (as the Panel envisage) on 1 October the additional cost in the current year could be met from within existing budgetary provision. The actual cost (and any resultant shortfall) will depend on what decisions the Council takes on the recommendations and the level of budgetary provision it is prepared to make.
  10. RECOMMENDATIONS

  11. The Council is RECOMMENDED to consider the recommendations of the Independent Remuneration Panel and, in the light of those recommendations, to:
          1. determine the level of the Basic Allowance, to be payable to all councillors;
          2. determine those responsibilities for which Special Responsibility Allowances will be paid and the levels of such allowances;
          3. determine the levels of Childcare and Dependent Carers’ allowances;
          4. decide whether to introduce co-optee’s allowances and if so on what basis;
          5. decide whether to introduce indexation for Basic and Special Responsibility Allowances and if so on what terms;
          6. determine which if any members should be eligible for admission to the Local Government Pension Scheme and whether any or all of the Basic and Special Responsibility Allowances should be pensionable;
          7. decide on the amounts and arrangements for payment of travel and subsistence allowances, including any changes in the range of eligible duties;
          8. authorise the Assistant Chief Executive & Monitoring Officer to take all necessary action to give effect to the Council’s decisions including the making of a replacement Scheme of Members’ Allowances;
          9. ask officers, following consultation with the Councillor Reference Group, to draw up more detailed proposals for how the Panel’s recommendations as to "role descriptions" for councillors and a system of annual reports by individual councillors might be implemented, for report to a future meeting of the Council.

C J IMPEY
Assistant Chief Executive & Monitoring Officer

Background papers: Nil

Contact Officers: Glenn Watson/John Leverton (01865) 815270/815314

August 2003

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