Agenda item

This report outlines the annual review of the Members Allowance Scheme undertaken for 2025 - 26.

(Agenda republished to include the attached report on 21 February 2025)

The Mayor then invited Councillor Muhammed Butt, Leader of the Council, to introduce the report from the Corporate Director of Law and Governance which sought approval to the proposed Members Allowance Scheme for the 2025-26 financial year.

In introducing the report, the Leader outlined the background to the annual review and proposed uplift in the level of basic, special responsibility and civic allowances for 2025-26, which members were advised had been designed to take account of the latest review completed in 2023 by the Independent Remuneration Panel (IRP) on behalf of London Councils.  In recognising the importance of the representational role undertaken by members alongside the increasing challenge in terms of managing demand and supporting the delivery of local services, the proposals had also sought to ensure any uplift could be managed within the existing Members Allowance budget, given the current financial pressures faced by the Council, and also reflected the National Joint Council Government Services pay agreement for staff during 2024-25.  Members were advised this had therefore resulted in a recommended uplift of 2.5% to be applied across the basic allowance and Special Responsibility Allowances (SRAs) for 2025-26.

The Mayor thanked Councillor Muhammed Butt for introducing the report and then invited contributions from other members.

In response to the proposals outlined Councillor Kansagra (as Leader of the Conservative Group), whilst supportive of the attempts made to recognise the importance of the representational role undertaken by members, felt there was a need (given the time and effort involved) for a wider review of the level and allocation of SRA’s for specific roles reflecting the different commitments required to deliver them effectively. To better inform the review process, it was felt this should be supported by additional benchmarking against comparative rates with the outcome reported back to the Constitutional Working Group for consideration.

As a further contribution, Councillor Lorber also spoke (as Leader of the Liberal Democrats Group) to highlight what he felt was a need for any increase in allowances to be self-funding and supported by savings achieved through a reduction and consolidation in Cabinet Member positions to reflect and align with the recent restructure of the Council’s senior management team.  In reviewing the overall impact of the proposed change on the allowance budget, further clarification was also sought on the extent to which the saving identified during 2024-25 in relation to the Members Allowance scheme and had been delivered.

As no other members indicated they wished to speak the Mayor invited Councillor Muhammed Butt to exercise his right of reply. In response to the concerns identified and in closing the debate, the Leader once again highlighted that the proposals in relation to SRAs had been designed to bring those specific allowances in line with the IRPs recommended percentage bands whilst also reflecting the increase in scope and workload experienced by all members in their various roles.  In confirming that the previous saving identified in relation to the Allowance Scheme had been achieved and advising that he would have no objection to a further review of allowances across all positions being undertaken through the Constitutional Working Group, he ended by commending the report as submitted to Council.

Having thanked Councillor M.Butt for closing the debate, the Mayor then put the recommendations in the report to the vote and they were declared CARRIED.

Council therefore RESOLVED:

(1)    To approve the Members Allowance Scheme in the proposed terms set out within the report for the 2025-26 Financial Year.

(2)    To authorise the Corporate Director of Law & Governance to comply with the statutory requirements to publicise the Council’s Members’ Allowance Scheme.