Pickles takes action to end ‘golden goodbyes’
Author: Mark Conrad, the MJ |
Communities secretary Eric Pickles today warned local government’s ‘boomerang bosses’ that ‘the days of lining your pocket at the expense of the taxpayer are over’.
Mr Pickles has taken action to halt what ministers see as overly-generous pay-offs made to poor-performing council chief executives when they leave their post, and will effectively make it easier for councils to sack their most senior officials.
The secretary of state has said he will introduce secondary legislation that requires an authority to engage a designated independent person (DIP), often a Queen’s Counsel, to oversee the removal of a poor-performing chief executive or head of paid service.
The Local Government Association claims this expensive procedure – which is not a requirement across other parts of the public sector – costs a minimum of £100,000, while other councils claim the figure is often more than £250,000.
Some councils have reported that the expensive and bureaucratic DIP process is why they often instead settle on agreeing a sizable pay-off with exiting chief executives or senior staff.
So-called ‘golden goodbyes’ paid to council chiefs have become a thorny issue in local government. Katherine Kerswell received around £589,000 when she left Kent CC after just a year and a half in the role – before quickly walking into a lucrative post in Whitehall.
The swift return of some senior staff to new, highly-paid roles in the public sector shortly after their dismissal has itself caused controversy and has been dubbed the ‘boomerang bosses’ phenomenon. Mr Pickles said: ‘A Town Hall chief executive costs a lot of money, but if they are simply not up to the job, councillors must be able to get rid of them quick smart without having to throw away thousands in parachute pay-offs.
‘It is ridiculous that councils feel forced to give bumper pay offs to dismiss inadequate chief executives simply to avoid these unnecessary golden goodbye reviews from expensive lawyers.
‘Scrapping this bizarre bureaucratic ritual will save taxpayers money and put the decision firmly back in democratically elected hands. ‘
Mr Pickles also re-ignited the debate over whether some councils require a chief executive at all. He has supported the small number of authorities that currently share their most senior official, and is keen to encourage other councils to engage in similar arrangements.
Mr Pickles and his team have also suggested that authorities led by a directly-elected or powerful mayor or leader could operate without a chief executive and instead opt for a head of paid service managing senior service-based directors.
The secretary of state has also reiterated his call for pay restraint across senior town hall posts. He recently asked all council chief executives to take a 5% or 10% pay cut – with some success and wants senior pay limited to levels below that of the prime minister’s official salary of £142,000.
He told the Daily Telegraph: ‘We watched the tiniest of tinpot chief execs swan around like a feudal lord. Banging on about cuts, slashing services and feathering their own nest. They were out of touch.
‘Any town hall that feels the need to pay their chief exec more than the chief exec of Great Britain plc needs its head read.’
Mr Pickles’ plans are likely to be heavily criticised by organisations representing senior town hall staff, such as SOLACE, which has pointed out that many chief executives are removed from their post not because they are poor-performers, but because they fall out with their authority’s political leaders.