To approve the councillors’ allowances scheme, having regard to the recommendations of the independent remuneration panel.

Council considered a report concerning the recommendations of the Independent Remuneration Panel (IRP) and potential options for the Herefordshire councillors’ allowances scheme. Two supplements to the report had been published prior to the meeting: a correction to appendix 2 to the current special responsibility allowance (SRA) for chairmen of scrutiny committees which stood at £11,987; and a notified amendment from Councillor RI Matthews which introduced an additional option (E1) for an allowances scheme. The published amendment was not moved during the debate.  

The solicitor to the council introduced the report and explained regard must be paid to the recommendations of the IRP during determination of a scheme of allowances. All members had a pecuniary interest in the item as all members were required to receive a basic allowance. Following a written request the solicitor to the council had granted a dispensation and therefore those members who were affected could participate in the discussion, remain in the room and vote on all of the recommendations in item 10.

Members made general comments regarding the discomfort caused by the need to debate and determine an allowances scheme. Although it was recognised that the exercise was a statutory requirement there was potential for adverse public perception of members agreeing the level of allowances. It was commented that the independent determination of allowances would be desirable.

Members thanked the IRP for the work it had undertaken and the recommendations made.

In respect of recommendation (a) in the report members were divided in their preferences for the options in appendix 2 of the report; options B and D were proposed for debate and determination.

Councillor NE Shaw proposed and Councillor AW Johnson seconded option B.

Councillor AJW Powers proposed and Councillor A Seldon seconded option D.

In support of option B the following points were made:

·         The conclusions of the IRP were reasonable but it was recognised that they were based on national rates of pay which was a departure from accepted practice;

·         In determination of the allowances it was more appropriate to apply the local rates in Herefordshire. Option B took account of local rates of pay and adjusted allowances in relation to the lower rates in the county;

·         Option B was closest to the current scheme and had only a minor effect on a balanced budget and the medium term financial strategy.

In support of option D the following points were made:

·         In comparison with other unitary authorities Herefordshire Council had a low basic allowance which had not been significantly upgraded in over a decade. Further comparison showed that the difference between basic and special responsibility allowances at the council was pronounced. Option D would reduce this gap;

·         The basic allowance under option B was at a rate below the minimum wage, based on the hours members worked, as identified in the IRP report. As an authority that had adopted the living wage it was queried whether members would be content to adopt an allowance which fell below this threshold;  

·         The increase in  ...  view the full minutes text for item 10