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Agenda Item No. 7

 

The Vale of Glamorgan Council

 

Democratic Services Committee: 18th October, 2017

 

Report of the Head of Democratic Services

 

Independent Remuneration Panel for Wales (IRPW) Draft Annual Report 2018/19

 

Purpose of the Report

  1. To apprise Members of the draft IRPW Annual Report 2018/19.

Recommendations

  1. THAT the Committee consider the draft report (in particular, any new determinations) and any comments from the Committee be forwarded to the IRPW.
  2. THAT a copy of the draft Annual Report be forwarded to Group Leaders, in the event their respective Groups or individual Members wish to submit comments.

Reason for the Recommendations

(1&2) To provide the opportunity for the Committee, Political Groups and individual Members to consider the draft IRPW Annual Report and submit any comments.

Background

  1. The IRPW has recently issued its draft Annual Report 2018/19. The draft report contains several proposed changes to the IRPW's Remuneration Framework, including a small increase in the Basic Salary for all Members and some "significant changes" in respect of Town and Community Councils. The consultation period ends on 29th November, 2017 and the IRPW will then consider any responses submitted from consultees prior to the production of its final Annual Report in February 2018.

Relevant Issues and Options

  1. In line with its previous approach in the year of a Council Election, representatives of the IRPW have visited all 22 Local Authorities in Wales. The visits were designed to provide the IRPW with an opportunity to discuss issues with a cross-section of Members and Senior Officers. A number of Members and Officers met with the Panel when they visited the Council on 5th September, 2017. In the Foreword to the draft Annual Report, the Chair of the IRPW states that:

"The visits and the resulting discussions assisted in continuing to ensure that we have a comprehensive understanding of the development of the role of the Councillor and the workload pressures that appear to be increasing across the board.

The conclusions from our discussions have wherever possible been incorporated in our determinations and in particular our proposed modest increase in the basic salary.

 

As a Panel we believe the overwhelming majority of the 1,254 Elected Members of the 22 Councils are committed to serving their communities and put in many hours that the basis remuneration could not cover. Affordability is an issue for both the Councils and taxpayers and this restricts other than modest additional costs to the total payments to Members. What we wish to prevent is further erosion of the link with the average Welsh earnings.

Other changes that we are proposing for 2018 are set out in the Report."

  1. The full draft Annual Report can be found at http://gov.wales/irpwsub/home/publication-reports/financial-year-2018-19/?lang=en

For ease of reference, the Introduction to the report is attached as Appendix A and the list of draft Panel Determinations for 2018/19 (Annex 1 to the draft Annual Report) is attached at Appendix B. It can be seen that the draft Panel Determinations include:

  • a proposed increase of £200 in the Basic Salary to £13,600. No increase is proposed for Senior Salaries, but all postholders will be entitled to the increase in the Basic Salary element (Determination 1);
  • the removal of the relatively short-lived provision which the Panel introduced in 2016 providing for Local Authorities to pay two levels of salary for Executive Members and Committee Chairmen;
  • reference to very few Members utilising the provision in the Remuneration Framework to reimburse costs of care;
  • the Panel is of the view that "there are still major issues to be addressed with Community and Town Councils which we will be raising with individual Councils and their representative organisations. However, as a start to this process we are proposing to introduce grouping Councils according to level of income or expenditure. We propose that mandatory payments be made to senior Members in those Councils in the highest group." (Determination 45);
  • Determinations 44, 46, 51 and 52 (which relate to Town and Community Councils) also include different provisions to those currently applying.
  1. The Council's Members' Allowances Scheme (as contained in the Constitution) reflects the fact that the Council has resolved to abide by the determinations of the IRPW as set out in its Annual Report each year.

Resource Implications (Financial and Employment)

  1. In the event the proposed increase of £200 on the Basic Salary is incorporated within the final IRPW Annual Report, the overall cost of Members' Allowances within the Council would rise by £9,400 (should all Members accept the increase).

Sustainability and Climate Change Implications

  1. There are no direct implications arising from this report.

Legal Implications (to Include Human Rights Implications)

  1. There are no direct implications arising from this report.

Crime and Disorder Implications

  1. There are no direct implications arising from this report.

Equal Opportunities Implications (to include Welsh Language issues)

  1. All Members will be entitled to receive any increase in the Basic Salary.

Corporate/Service Objectives

  1. The Council is committed to providing the best possible support to elected Members.

Policy Framework and Budget

  1. As indicated above, the Council has resolved to abide by the determinations of the IRPW as set out in its Annual Report each year.

Consultation (including Ward Member Consultation)

  1. This is an internal matter and consultation is, therefore, not necessary.

Relevant Scrutiny Committee

  1. Corporate Performance and Resources.

Background Papers

Independent Remuneration Panel for Wales draft Annual Report 2018/19.

Contact Officer

Jeff Wyatt, Head of Democratic Services

01446 709408; jrwyatt@valeofglamorgan.gov.uk

Officers Consulted

Managing Director

Head of Legal Services

Head of Finance.

Responsible Officer:

Jeff Wyatt

Head of Democratic Services