Neill calls for pay transparency in local government

Local government minister Mr Bob Neill has written to council leaders calling for transparency on local government pay arrangements.

The HM Treasury has published a review of central Government appointees, identifying the number of off payroll engagements worth more than £58,200 per annum. Local authorities were not included in the review as they are employers in their own right.

Mr Neill has now written to the Local Government Association(LGA) encouraging local government to follow the same principles as those in the Government policy.

In his letter, he stated: 'As you will be aware, authorities should be already looking at this issue in line with the pay accountability measures in the Localism Act and its accompanying guidance: Opennessand Accountability in Local Pay.

The guidance is clear that councils should actively review the terms of remuneration for senior appointments in their workforces, particularly where arrangements exist which could be perceived as seeking to minimise tax payments.

'In addition, elected councillors should approve a local policy on the use of such arrangements within their workforces. Authorities were required to have their first pay policy statements in place by 31 March 2012.'

Mr Neill also added that councils are expected to have regard to a Code of Recommended Practice for Local Authorities on Data Transparency, which covers all their data publications including senior salaries and payments to contractors over £500.