Report of the Independent Remuneration Panel on Councillors’ Allowances - March 2021

Date: March 2021

Independent Remuneration Panel

The City of Wolverhampton Council Independent Remuneration Panel was established under the Local Authorities (Members’ Allowances) (England) Regulations 2003 to provide advice and recommendations to the Council on amounts to be paid under its Councillors’ Allowances scheme. Members of the Panel are appointed by the Council and are independent members of the local community.

The Independent Remuneration Panel has reviewed the Special Responsibility Allowances as a result of minor changes being made to the Governance Structure, on behalf of the Panel, I present the report and recommendations for the payment of Members’ Allowances for 2021/22. This report is required by the Local Authorities (Members’ Allowances) (England) Regulations 2003. In conducting this review, the Independent Remuneration Panel has had regard to the 2006 `Statutory Guidance on Members Allowances.

The Council is required to have regard to our recommendations in deciding what allowances to pay Councillors. Additionally, the Council must also publish our recommendations and conclusions, together with the approved scheme.

Miceal Barden - Chair of the Independent Remuneration Panel

1.       Panel Membership

1.1     The Panel composed of three members:

• Sylvia Parkin – Deputy Lieutenant
• Mr Miceal Barden – Dean of the Faculty of Social Sciences, Wolverhampton University
• Reverend David Wright – Representing the Rector of St. Peters Church Wolverhampton

2.        How the Panel Approached the Review

2.1      The Panel chose the following means of gathering evidence.

• Consideration of relevant legislation and guidance

Councillor’s allowances are paid in accordance with Local Government and Housing Act 1989 and the Local Government Act 2000. Section 18 of the 1989 Act, as amended by Section 99 of the Local Government Act 2000 makes provision in relation to basic, special responsibility and childcare and dependants' carers' allowances for members of local authorities. Section 100 of the 2000 Act allows the Secretary of State to make provision in relation to travel and subsistence allowance for members of local authorities and an allowance for non-councillors who are members of a council's committee or sub-committee.

The Local Authorities (Members' Allowances) (England) Regulations 2003 were made under these provisions. The Regulations provide that it is for each local authority to decide its scheme and the amounts to be paid under that scheme. Councils are required to establish an Independent Remuneration Panel which will provide the local authority with advice on its scheme, the amounts to be paid and the pensionability of allowances where relevant. The Council must have regard to this advice from the Panel.

• Consideration of the current scheme of allowances

The Panel were required to review the range of allowances currently paid to members of Wolverhampton City Council. Details of the current schedule of the allowances are included at Annex 1.

• Review of comparative allowances

In looking at the allowances paid we sought to understand the level of allowances paid to Councillors performing similar roles at similar sized Councils. As with the previous report we have used the Councils in the CIPFA family group and particular attention has been paid to the allowances paid by the other three Black Country authorities.

3.         Scope of the Report

3.1      The report sets out the Panel’s recommendations to enable the Council to agree a revised Councillors’ Allowances Scheme.

3.2      These recommendations take account of the Council’s current political composition and political management arrangements. Recommendations should be applied from the start of the 2021 - 2022 municipal year.

3.3      The Panel reviewed the Council’s scheme of Councillors Allowances and Expenses in accordance with the provisions of the Regulations and its terms of reference covered:

Review of Special Responsibility Allowances:

• Review whether a Special Responsibility Allowance for the Chair and Vice Chair of the Governance and Ethics Committee should be introduced.

4.         Background Information – City of Wolverhampton Council

4.1      The City of Wolverhampton Council has 60 Councillors representing 20 wards. The current political composition of the Council is:

4.2      The Council operates a Leader and Cabinet model of governance. The Cabinet is currently made up of the Leader of the Council, Deputy Leader of the Council and eight other Cabinet Members. Each of the 10 members of the Cabinet has a specific portfolio of responsibilities.

4.3      The Council currently has six themed Scrutiny Panels and an overarching Scrutiny Board whose role is to hold the executive to account, contribute to policy development, carry out reviews and monitor the performance of the Council.

4.4      The Council also appoints a number of other Committees to exercise its regulatory functions and other functions that are not the responsibility of the executive.

5.         Proposed Governance Structure

5.1      As part of the review of the Constitution, it has been proposed to Council that the Governance and Standards Committees be combined so that there is a Governance and Ethics Committee. The Panel were provided with an overview on the role of the Governance and Ethics Committee.

6.         Special Responsibility Allowances

6.1        Each local authority may also make provision in its scheme for the payment of special responsibility allowances (SRA) for those councillors who have significant responsibilities over and above the generally accepted duties of a councillor.

6.2      The responsibilities remunerated under Wolverhampton’s current Scheme of Allowances are:

Leader
Deputy Leader
Leader of the Main Opposition Group
Deputy Leader of the Main Opposition Group
Cabinet Member
Chair – Scrutiny Board
Chair – Scrutiny Panel
Chair – Planning Committee
Chair – Licensing Committee
Chair – Pensions Committee
Chair – Audit Committee

Vice-Chair – Scrutiny Board and Panels
Vice-Chair – Planning Committee
Vice-Chair – Licensing Committee
Vice-Chair – Pensions Committee
Vice-Chair – Audit Committee

Leader of a Minority Opposition Group *
Councillor Champions

“Special Responsibility Allowance for the Leader of a Minority Opposition Group to be paid only if a Minority Opposition Group comprises five or more Councillors”

6.3      In reviewing the SRAs, the Panel carefully considered the national guidance which explains that they may be paid to those councillors of the council who have significant additional responsibilities over and above the generally accepted duties of a councillor. The guidance states that it does not necessarily follow that particular responsibilities given to a particular councillor is a significant additional responsibility for which a special allowance should be paid. Such duties may not lead to a significant extra workload for any one particular councillor above another and that they should be recognised as time commitment to council work which is acknowledged within the basic allowance and not responsibilities for which an SRA should be recommended.

6.4      The Panel noted that its responsibility is limited to considering whether any roles should be remunerated under the scheme, not the content and structure of any roles which the Council may choose to establish.

6.5      The Panel reviewed evidence about the time commitment and responsibilities
involved and considered benchmarking information. It was noted that most of the roles remunerated by Wolverhampton are remunerated by other comparator authorities and the levels of allowances paid by Wolverhampton are at or around the average or significantly higher for certain roles.

6.6      The Panel was specifically asked in its terms of reference to consider whether the role of Chair and Vice Chair of Governance and Ethics Committee should be remunerated.

6.7      The Panel reviewed evidence about the time commitment and responsibilities likely to be involved for the new roles. The Panel was informed that the Chair and Vice Chair of Governance and Ethics Committee would be required to carry out activities that involve an amount of time greater or equal to the other categories of SRAs already paid. 
 
6.8      The Panel noted that comparator authorities did not all appear to have equivalent roles. However, the Panel was informed that authorities that had equivalent roles remunerated the role.    

6.9      The Panel were advised that any changes to SRA’s needed to remain within existing budget provisions.

The Panel made the following recommendations:

Recommendation 1: That the Chair of Governance and Ethics Committee be remunerated at £10,000.

Recommendation 2: That, should the changes to the Constitution proceed, then the Vice Chair of Governance and Ethics Committee be remunerated at £2,500.

Annex 1

Schedule of Basic and Special Responsibility Allowances
           
Basic Allowance (All Councillors) – £9,531.00