Local Government (Pay Accountability) Bill

Alexander Stafford Excerpts

Committee stage
Wednesday 22nd May 2024 Public Bill Committees

[Paul Bristow]

The Bill seeks to increase the transparency and democratic oversight of senior pay and reward across relevant authorities in local government. Local authorities are independent employers; however, the Government consider that the highest salaries in local Government should be subject to greater democratic scrutiny. The Bill requires relevant authorities to gain approval by resolution before advertising a role, or appointing a person to a role, with an annual salary that exceeds £100,000. This will apply only to new appointments.

Hon. Members will be aware that in places such as Peterborough and, I am sure, Ipswich, Bassetlaw, Leigh, Rother Valley, Milton Keynes and north Wales—[Interruption.] Oh, and Dorset! In such places, someone who earns more than £100,000 is probably one of the highest-paid people living in that area. There is already statutory guidance that states that local authorities should be doing what the Bill requires, but the Bill seeks to make what is currently only guidance into a legal requirement.

Before I come to the clauses, which are of course what we are here to discuss, I want to thank everyone who has helped to bring the Bill forward so far. I thank all the relevant people, offices and officials at the Department for the work they have done, and I thank everyone who is here today to support and scrutinise the Bill. I also thank my researcher, Rhys Evans, who probably knows far more about the Bill than I do and has been instrumental in helping me to bring it forward. That comes from the very bottom of my heart: thank you all very much indeed for all your support.

Clause 1 updates the legislation relating to local government pay policy statements, by inserting a new clause into the Localism Act 2011 to create a new requirement in the process for the approval of certain remuneration paid to local government employees. It outlines how relevant authorities will be required to gain approval by resolution before advertising employment or appointing a person to a role with an annual salary of £100,000 or more, for new appointments only. The Bill will be relevant to places like Bradford; I note the attendance of the hon. Member for Bradford West.

The Bill will also apply to individuals employed by the relevant authorities on a part-time or temporary basis if the pro rata salary would meet the £100,000 full-time threshold. Clause 1 further sets out the conditions under which the Bill’s provision will take effect.

[Alexander Stafford (Rother Valley) (Con)]

My hon. Friend is making an important point about his important Bill. May I seek some clarity? Is the Bill just about job adverts, or will there be an annual update of how many new people are employed on more than £100,000 and who they are? True transparency is not just about gaining employment; it should be about the continuation, so that everyone knows where they stand. That will also help with diversity and inclusion and other such aspects, by raising people’s salaries.

[Paul Bristow]

My hon. Friend makes an interesting point. As I said, the Bill requires the relevant authorities to gain approval by resolution before not just advertising but appointing a person for a role with an annual salary that exceeds £100,000. It will apply to those who are appointed, rather than just to the advertisement element. The Bill will create greater transparency so that people are able to see much more clearly the gap between those in a local authority who are paid the most and those who are paid the least. I think that will help all decision making when it comes to pay and guidance. It will also help trade unions with some of the things they need to do to ensure that their members get a fair deal when it comes to remuneration.

Clause 2 confirms the Bill’s territorial extent as England and Wales, with application in England only, and contains measures in respect of the Bill’s commencement and on transitional and savings provisions. The clause will come into force on the day on which the Bill receives Royal Assent, and it sets out the extent, commencement and short title of the Bill.

The amendment I have tabled will provide that resolutions held for the purposes of the Bill will not qualify as information exempt from public discourse. It will ensure that the Bill’s key objective, which is to increase transparency on senior pay in local government, is met. It will ensure that any votes on salaries are held in view of the public; that transparency is incredibly important. It will prevent relevant authorities from utilising the existing exemption rules to circumnavigate the transparency requirements for salary offers. Transparency is the principle of the Bill and what we are trying to achieve, because with greater transparency and greater accountability comes better decision making.

Ultimately, the Bill seeks to ensure that proper scrutiny and accountability is in place for salary offers for senior officials that are above £100,000 for relevant authorities, in respect of new appointments only, and that openness and transparency are adhered to across the board.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Simon Hoare)]

I am sure the Committee will be familiar with the dictum of Cecil Rhodes. He is often misquoted, but the direct quotation is:

“Remember that you are an Englishman, and have consequently won first prize in the lottery of life.”

As a Welshman, Mrs Harris, may I say that to serve under your chairmanship is to have won first prize in the lottery of life? If that does not get me some brownie points, I do not know what will. It is a pleasure to serve under my friend and colleague, Mrs Harris.

I am more than grateful to my hon. Friend the Member for Peterborough for his leadership on this issue and for the work that he and his parliamentary staff have put in to furthering this important Bill. I am delighted to say that the Government support the Bill, as they support the amendment tabled by my hon. Friend, so I hope we can avoid a Division on that matter.

[Alexander Stafford]

I am glad that the Government support the Bill, but I am disappointed that they have not tabled an amendment in respect of fire authorities, to increase transparency. I am disappointed that fire authorities are exempted. Will the Minister touch on why they have been exempted and are not treated as the rest of local government is? We are all one, all local servants, and should be treated the same.

[Simon Hoare]

I think the Bill was narrow in scope for a reason—possibly for the reasons that I will touch on in a moment. My hon. Friend makes a strong point, in principle. One could argue for it under the dictum that what is sauce for the goose is sauce for the gander. Of course, it is open to my hon. Friend and others to consider authoring amendments as the Bill progresses through this place and the other place. I will leave that to him.

Let me turn to what the Bill is about—actually, let me touch for a moment on what the Bill is not about, because I think that is almost as important to stress. This is not a Bill that says, as a matter of guiding-star principle, that in the local government sector being paid more than £100,000 is a bad thing. Anybody who works closely with their local councils—irrespective of tier, but particularly although not exclusively with the unitary and/or upper-tier authorities—will know that in many respects senior officers, who in the main are the people who would command that level of remuneration, are in effect running large divisions of a multi-facing business. If we are to expect high-quality public services delivered efficiently and robustly, local government of course needs to be able to attract the brightest and the best.

One could argue, from the point of view a public service ethos, that working for the public good is of itself remuneration enough. But that will not convince the gas board, the water company or the mortgage company: “I can’t pay you this month or this year, but I am working in local government, so there’s a lovely warm and fuzzy feeling around me. Please take that as payment in lieu.” The bills need to be paid.

This is not about castigation. It is not about asserting, as is sometimes erroneously trumpeted, “Oh, everybody is paid far too much in local government.” Far from it. All of us who work closely with local government—I have the privilege to do so as both a Member of Parliament and a Minister, and colleagues on the Committee will do so with their local officers—usually come away entirely impressed by the devotion to duty, the wisdom and the commitment to public service that officers bring.

--- Later in debate ---

[Paul Bristow]

I rise again to thank everybody who has contributed to get us to where we are today. I thank the officials in the Department and Committee members from across the House for what they have done. I once again thank my researcher, Rhys Evans, for all his work and, of course, I thank you, Ms Harris, for chairing this debate so skilfully.

[Alexander Stafford]

As we are giving thanks, I also thank my hon. Friend for leading this Bill. He is an assiduous Member of Parliament for Peterborough; in fact, he is the Member of Parliament for my mother and father-in-law. He is a great MP and the people of Peterborough are lucky to have him.

[Paul Bristow]

I am not sure I could be thanked any more, but there is always an opportunity for one more round of thanks if anyone wishes to do that.