Harry Fone is the Grassroots Campaign Manager for the TaxPayers’ Alliance.
Despite everything the pandemic has thrown at taxpayers in the last year, they’ve still had to suffer yet another round of inflation-busting council tax rises. Analysis by the TaxPayers’ Alliance has shown that more than a third of local authorities in England are now charging over £2,000 for a Band D property. Over one hundred councils have now crossed the Rubicon, with many more surely planning to follow.
This is the latest development in a long-running tale of tax hikes. In less than 20 years, bills in England have increased on average by 111 per cent in cash terms. This year, out of 147 authorities who could increase council tax by the maximum amount of 4.99 per cent, 89 councils (61 per cent) did so. Consequently, the average bill is £1,898 – more than £300 higher than it was in 2018-19.
In Wales, the double-digit rises we’ve previously seen seem to be on hold, but bills are still climbing. Scottish ratepayers enjoyed a council tax freeze this year. This was only possible, however, thanks to a significant cash injection from the Scottish government. One way or another, the public will be footing the bill. That’s why it’s so important that local authorities do everything possible to keep rises to an absolute minimum.
A common defence from councils is that there is no more waste to find and they are focussing every penny on essential services despite years of central funding cuts. I’d have some sympathy for this argument, were it not for the fact that I continue to see example after example of taxpayers’ cash going down the drain. No sooner do they plead poverty and claim there are no more savings to make, than councils set up an energy company, set up a new pet project, or splash on pay rises.
That’s what we see in this year’s edition of the TPA’s Town Hall Rich List. Our list details all council employees in the UK who receive remuneration in excess of £100,000. The figures show that in 2019-20 at least 2,802 local authority employees did so. That’s an increase of 135 compared to the previous. 693 staff enjoyed pay packets of £150,000 or more – another increase.
Every region of the country – with the exception of the North East – has experienced an increase in the number of council bosses receiving over £100,000. Essex County Council topped the charts for the third year in the row, for the most employees taking home more than six figures.
Now at this point, councils argue that they have to pay these salaries to attract the best people for the job. In principle, I would agree with that. If council bosses are working hard, eradicating wasteful spending, ramping up efficiency, providing good frontline services, and keeping council tax bills under control, then residents have no complaints. But as I’ve seen first-hand, many authorities are simply not up to scratch.
Take Nottingham City Council. It employed nine members of senior staff receiving over £100,000 in total remuneration. What did local taxpayers get for their money? A failed council-owned energy company that suffered losses of nearly £40 million. In 2021-22 residents will endure the highest Band D council tax bill in the whole of the UK, at a staggering £2,226.
And consider the shambles we’ve seen at Liverpool City Council in recent weeks. The Town Hall Rich List revealed 14 staff got more than £100,000, 5 of whom enjoyed more than £150,000. The total cost of these wage packets came in at over £2 million. Liverpudlians pay the highest council tax (Band D) bills in the North West at £2,129, yet their council has let them down terribly. Residents are paying top dollar and not getting bang for their buck.
Wherever we live in the country, we can all think of a council like that. Look at the top 20 list of highest remunerated employees and some familiar names pop out. Nathan Elvery, former chief executive of West Sussex County Council, took home £427,653 which included a loss of office payment of £170,000. He left the job following a report which documented “systemic and prolonged” failures in children’s services. But this was nothing compared to the £395,110 golden goodbye that Coventry’s deputy chief executive, Martin Yardley enjoyed. His total remuneration was over £570,000. During his four years in the top job, Band D council tax bills increased by £312.
Examples like this are exactly why we fought so hard for a cap on exit payments. Despite the short-lived life span of the legislation – which was introduced last year only to be revoked in March – it’s reassuring to hear that the chief secretary to the Treasury, Steve Barclay, is keen to reinstate a cap as soon as possible. Based on what we see in this latest Town Hall Rich List, I urge him to act quickly.
As I’ve written previously, the examples above are just the tip of the iceberg. Undoubtedly many more will be uncovered in the coming weeks and months. The TPA’s inbox is flooded daily with tip-offs from angry residents complaining about their council’s wasteful practices. Residents expect their councillors to be holding town hall bosses to account and putting an end to these wasteful practices. Instead, we’ve seen multiple instances of councillors voting to increase their own allowances during the pandemic.
It’s quite possible that in 2022-23, nearly two-thirds of English councils will be charging over £2,000. This can’t go on. Getting spending under control and reining in overly generous salaries is one of the surest ways to keep bills as low as possible. Otherwise, well-paid bosses should be spending time finding savings elsewhere. Taxpayers expect nothing less.