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Councils to publish executive pay | Councils to publish executive pay |
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New rules forcing councils in England to publish chief executives' salaries are to be introduced by the end of the year, the government has said. | New rules forcing councils in England to publish chief executives' salaries are to be introduced by the end of the year, the government has said. |
Local government minister Rosie Winterton said people had the right to see the full picture. | Local government minister Rosie Winterton said people had the right to see the full picture. |
About 20 council bosses are thought to earn more than the prime minister's £194,000 salary. | About 20 council bosses are thought to earn more than the prime minister's £194,000 salary. |
The Society of Local Authority Chief Executives said it was advising members to be open about their pay. | The Society of Local Authority Chief Executives said it was advising members to be open about their pay. |
The proposed rules would force up to 475 local authority bodies, including Transport for London and police and fire authorities, to detail the salaries, bonuses, pensions, perks and compensation pay-offs of their most senior staff. | The proposed rules would force up to 475 local authority bodies, including Transport for London and police and fire authorities, to detail the salaries, bonuses, pensions, perks and compensation pay-offs of their most senior staff. |
'Mood music' | 'Mood music' |
In a speech to the society's annual conference in Brighton, Ms Winterton said: "In the current climate, the public rightly expect greater value for money from local services. | In a speech to the society's annual conference in Brighton, Ms Winterton said: "In the current climate, the public rightly expect greater value for money from local services. |
"We are setting some pretty clear mood music about making sure every taxpayer's pound is worked as hard as possible. | "We are setting some pretty clear mood music about making sure every taxpayer's pound is worked as hard as possible. |
"Councils must be able to show they are providing a fair deal on pay in an open and transparent way - the public have the right to see the full picture." | "Councils must be able to show they are providing a fair deal on pay in an open and transparent way - the public have the right to see the full picture." |
If nobody knows what you do, how do you expect them to assess your value? Spokesman for the Society of Local Authority Chief Executives | If nobody knows what you do, how do you expect them to assess your value? Spokesman for the Society of Local Authority Chief Executives |
She said the new disclosure standards would bring councils in line with standards required of civil servants, the government and private sector organisations. | She said the new disclosure standards would bring councils in line with standards required of civil servants, the government and private sector organisations. |
Average pay for local government workers has gone up £6,000 in seven years, but the average pay of chief executives has risen by £40,000, according to the Department for Communities and Local Government. | Average pay for local government workers has gone up £6,000 in seven years, but the average pay of chief executives has risen by £40,000, according to the Department for Communities and Local Government. |
A spokesman for the Society of Local Authority Chief Executives said its members had been told it was not worth jousting with journalists and taxpayers' lobby groups and better to publish their salary on their website. | A spokesman for the Society of Local Authority Chief Executives said its members had been told it was not worth jousting with journalists and taxpayers' lobby groups and better to publish their salary on their website. |
He said this would be an opportunity for them to explain to the public what their job involved. | He said this would be an opportunity for them to explain to the public what their job involved. |
"If nobody knows what you do, how do you expect them to assess your value?," he added. | "If nobody knows what you do, how do you expect them to assess your value?," he added. |
'Boomerang bosses' | |
John Ransford, chief executive of the Local Government Association, said it was right that chief executive pay was subject to public scrutiny. | |
"Councils need talented people in top management positions and in deciding salary levels they have to balance this with other policy objectives, including the need, in a tight financial situation, for all salaries to be demonstrably reasonable," he added. | |
Ministers have been concerned that chief executives' salaries appear to leap whenever they move to a new job, with little evidence that the performance of the local authority improves. | Ministers have been concerned that chief executives' salaries appear to leap whenever they move to a new job, with little evidence that the performance of the local authority improves. |
Earlier this year, Communities Secretary John Denham asked the Audit Commission to look at so-called "boomerang bosses" who walk away with huge payouts, straight into the next job. | Earlier this year, Communities Secretary John Denham asked the Audit Commission to look at so-called "boomerang bosses" who walk away with huge payouts, straight into the next job. |
He has also said he wanted to look at ways to limit pension entitlements of the highest earners. | He has also said he wanted to look at ways to limit pension entitlements of the highest earners. |