Councillors on Liverpool City Council expected to vote themselves a 2% increase in allowances next Wednesday evening

Councillors on Liverpool City Council expected to vote themselves a 2% increase in allowances next Wednesday evening

Councillors on Liverpool City Council expected to vote themselves a 2% increase in allowances next Wednesday evening

                              

Councillors on Liverpool City Council’s Constitutional Issues Committee 9th May 2019 discussing how much they should be paid

Next Wednesday evening (22nd May 2019) councillors on Liverpool City Council are expected to agree to a 2% increase in the allowances paid to councillors and its Elected Mayor.
Continue reading “Councillors on Liverpool City Council expected to vote themselves a 2% increase in allowances next Wednesday evening”

Wirral Council’s councillors decided on backdated pay rises for 4 councillors costing an extra £34,226 a year!

Wirral Council’s councillors decided on backdated pay rises for 4 councillors costing an extra £34,226 a year!

Wirral Council’s councillors decided on backdated pay rises for 4 councillors costing an extra £34,226 a year!

                                          

Councillor Steve Foulkes (centre) 16th October 2017 voting to give himself a backdated £10,108 pay rise
Councillor Steve Foulkes (centre) 16th October 2017 voting to give himself a backdated £10,108 pay rise

Wirral Council councillors on Monday evening voted to give four councillors a backdated pay rise costing Wirral Council an extra £34,226 a year.

Councillors from Wirral Council (Councillors Abbey, Foulkes, Rowlands and Jerry Williams) on the Liverpool City Region Combined Authority Transport Committee (formerly called the Merseytravel Committee) will now receive a backdated basic allowance for their work on the Transport Committee annually of £5,675 each.

On top of the basic allowance of £5,675 (backdated to May) three councillors received extra amounts too. Cllr Les Rowlands received an extra £2,660 as Opposition Spokesperson, Cllr Steve Foulkes an extra £4,433 as Lead Member for Finance and Organisational Development and Cllr Ron Abbey an extra £4,433 as Lead Member for Bus.

A report of the Independent Panel on Member’s Allowances stated that prior to May “the allowances paid to the four Wirral Members were paid by the Council and reimbursed by Merseytravel” but went on to explain that after May 2017 Merseytravel would no longer do this and it would become a decision for individual councils.

Despite a legal requirement to publish the total amounts Wirral Council pays to individual councillors as soon as reasonably practicable after the end of a year it appears from this page on Wirral Council’s website that it has not yet done so for the 2016-17 year.

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Council (Wirral Council) 16th October 2017 Agenda item 11C Members Allowance Scheme

Earlier in the same public meeting, councillors heard from UNISON trade union representative Paddy Cleary who supported a Notice of Motion that called for the “immediate end of public sector pay restraint”.

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Which Liverpool City Council councillors recommended themselves a 1% pay rise?

Which Liverpool City Council councillors recommended themselves a 1% pay rise?

Which Liverpool City Council councillors recommended themselves a 1% pay rise?

                          

Constitutional Issues Committee (Liverpool City Council) 9th May 2017 left Chris Walsh right Cllr Alan Dean
Constitutional Issues Committee (Liverpool City Council) 9th May 2017 left Chris Walsh right Cllr Alan Dean



 

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Constitutional Issues Committee (Liverpool City Council) 9th May 2017 Agenda Item 9 Scheme of Member Allowances 2017/18 This item starts at 17:54 in the video above.

Now the local elections are over (although thanks to the government nationally there’s also a general election), I was present yesterday afternoon for a public meeting of Liverpool City Council’s Constitutional Issues Committee.

During the election campaigns for councillors and Metro Mayor, I’m sure many people told political parties and politicians of the “big issues” that people wanted sorted out.

So councillors have listened, and in one of the first recommendations after the local elections have recommended to award themselves a pay rise.

Interestingly based on comments made by those at the meeting at Liverpool City Council at least one councillor stated she was deterred from claiming expenses because they’re worried the Liverpool Echo would criticise them for doing so.

Wirral Council councillors on the other hand, have their spokesperson Cllr Adrian Jones to state it’s not reasonable for the press and public to know what councillors claiming in expenses and these are kept a secret on the Wirral.

Of course the last Labour government made it a law that all expenses claimed by councillors had to be open to public inspection.

Moving swiftly back to Liverpool City Council councillors though. The report from the Independent Panel was a late report dated the day before the meeting, so Chris Walsh was busy handing out copies to councillors in the minutes before the meeting started.

The report encourages councillors to claim legitimate expenses, although a number of councillors pointed out that Merseytravel already provide them with free travel on public transport. Taxis had been mentioned earlier in the meeting, but in the context of criticism about Wirral registered taxis coming over to Liverpool.

So what are Liverpool’s politicians paid at the moment? Well the Mayor of Liverpool Joe Anderson is paid a base amount of £79,500, councillors each receive a base amount of £10,077.

Councillors also receive IT equipment (along with access to Council systems), car park passes, “Group Office Member support” (which means staff), printing, stationery, postage costs and surgery costs (up to a maximum of £330 a year).

There is a childcare allowance (only for children up to thirteen) and dependant carer’s allowance. If councillors are representing Liverpool City Council on outside bodies they’re not allowed to “double claim” from that body and Liverpool City Council.

Travel and subsistence claims can also be made, including international travel. There are a range of special responsibility allowances (which are in addition to the base amount) ranging from Deputy Mayor (£28,620) to Whip of Main Opposition Group (if that group has over 20% of the councillors) of £4,209.

Councillors on outside bodies, just to give one example Cllr Dave Hanratty as Chair of Merseyside Fire and Rescue Authority receives an extra ~£27k.

So back to what councillors said at the public meeting.

Firstly, the Labour Chair Cllr Alan Dean said Liverpool City councillors should be paid more because of what other councillors on Merseyside are paid.

Cllr Richard Kemp (Leader of the Liberal Democrat councillors on Liverpool City Council) said they would not oppose the pay rise.

On the subject of expenses, a councillor then said that she did not want to be mocked on the front page of the Liverpool Echo for claiming expenses.

Councillor Richard Kemp stated that he couldn’t afford the £140-£150 train fare when he went to London so claimed it on expenses, but that Liverpool City Council paid at a discounted rate due to his senior citizens card.

The Chair Cllr Alan Dean stated that politicians shouldn’t be carrying out their functions at a financial loss or gain. He referred to his public transport pass that Merseytravel issue him with. Cllr Richard Kemp confirmed he has a Merseytravel pass too.

The recommendation for a pay rise will be formally agreed at a future public meeting of all 90 Liverpool City Council councillors and the elected Mayor at Liverpool Town Hall.

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MFRA Chair Cllr Hanratty wants to “move on” on issue of councillors’ expenses

MFRA Chair Cllr Hanratty wants to “move on” on issue of councillors’ expenses

MFRA Chair Cllr Hanratty wants to “move on” on issue of councillors’ expenses

                                                                

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Video of the Merseyside Fire and Rescue Authority meeting starting at the agenda item on the delegation

Cllr Dave Hanratty (on the right) speaking at a meeting of the Merseyside Fire and Rescue Authority 20th October 2015
Cllr Dave Hanratty (on the right) speaking at a meeting of the Merseyside Fire and Rescue Authority 20th October 2015

Here’s an exchange between myself and the Chair of the Merseyside Fire and Rescue Authority Cllr Dave Hanratty at a public meeting of the Merseyside Fire and Rescue Authority today.

The reference to note 29 which is part of the statement of accounts for 2014/15 is below.

29. Members’ Allowances

The Authority comprises of 18 councillors from the 5 districts of Merseyside. The total allowances paid to members within the year were:

  2014/15 2013/14
£000 £000
Allowances 225 239
Expenses 14 23
239 262
         

The amounts reported to the Merseyside Fire and Rescue Authority AGM in June 2015 are in this table here show allowances of £213,690.44 (total of the first eight columns) and expenses of £7,708.34 (total of scale subsist, trav & subsist, overnight & mileage columns).


JOHN BRACE: Earlier this year, on the 11th June, the Merseyside Fire and Rescue Authority met. Agenda item 9 (Members Allowance Payments), included a table of allowance and expense payments for councillors on the MFRA for the previous financial year (2014£15).

The report that accompanied the table referred to the regulations. They require publication each year of the amounts paid out under the Members Allowance Scheme for each councillor in the categories of basic allowance, special responsibility allowance, dependants’ carers’ allowance, travelling and subsistence allowance and co-optees’ allowance.

However the expenses in that table only included amounts claimed back by councillors through expense claims. That table did not include amounts where the MFRA was invoiced directly for travel and accommodation expenses rather than councillors being reimbursed. These amounts where MFRA were invoiced directly total around six thousand pounds.

The regulations however require the table to include all payments made under the Members Allowance Scheme irrespective of whether they are paid directly by MFRA or claimed back by councillors using expense claims.

The table of figures for allowances reported to the AGM on the 11th June also didn’t include the employer National Insurance costs of £10,151.59p paid on the allowances.

Ultimately councillors are accountable to the people of Merseyside, so what reassurances can you give that next time the figures are published for 2015/16 that they will reflect the actual cost of councillors’ allowances and expenses?

CLLR DAVE HANRATTY (CHAIR): OK, thank you Mr. Brace. I understand that there’s been a number of email exchanges between yourself and officers of the Authority to explain to you the breakdown of the cost of how they’ve been calculated. Is that correct?

JOHN BRACE: Yes, there have been emails between us.

CLLR DAVE HANRATTY (CHAIR): I also understand that this has been shared with the District Auditor? Is that correct?

JOHN BRACE: Grant Thornton, yes.

CLLR DAVE HANRATTY (CHAIR): I also understand that this has been approved the way the finances have been reported to the Authority, it has been found it’s been confirmed, there has never been an issue with that? They’ve accepted the way it’s been calculated, the way it’s reported.

JOHN BRACE: They accepted the note in the Statement of Accounts includes the amounts I’ve referred to yes.

CLLR DAVE HANRATTY (CHAIR): Well in that case Mr. Brace I think you’ve received the response from the Authority and that’s been sufficient. OK?

Just before we finish on that, I know that the government have brought in freedom of information and it’s open to the public to ask questions about documents of the Authority, but what I would say is that because of the diminished resources that the Authority now finds itself in, I think when you look at the time that officers and resources are given to individuals who according to the Authority are asking for certain information, I think they need to consider the impact this has on the Service, on the officers? time and also on our financial resources and this shouldn’t be for somebody’s pastime or for somebody’s hobby when you think about the financial situation that we find ourselves in and I think the Authority needs to examine this and maybe report back to the appropriate minister about maybe if circumstances may be open to abuse.

I’m not happy with that myself, we’ve got a lot of demands within the Service, within the Authority and I don’t want any officers’ time being wasted by somebody coming in just to fill their own pastime. I think it’s absolutely appalling and I think there’s something that should be done about it.

So on that point, I think that the deputation should just be noted and we’ll move on.


As Cllr Hanratty refers to Grant Thornton’s approval of the way the figures are presented in the Statement of Accounts, I thought it best to include the only two emails from Grant Thornton to myself on this in full here.


      

11th September 2015 email from Grant Thornton

Dear Mr Brace

Thank you for your email, the contents of which are noted.

I have forwarded your email to ‎Mike Thomas who is the Director responsible for our audit of Merseyside Fire & Rescue Service. Mike will respond to you in due course.

Yours sincerely


15th September 2015 email from Grant Thornton

Dear Mr Brace

I have been copied into your email regarding the queries you have raised with Merseyside Fire and Rescue Authority regarding members expenses. In the first instance this is a matter for the Authority to deal with and to respond to you. My staff are aware of the issue and will keep in touch with MFRA regarding this matter. Hopefully this can be resolved very quickly in the next couple of days.

Yours sincerely,


In other words the issue of whether the correct figures were used in the table for the AGM meeting was never addressed by Grant Thornton (at least in emails to me) which Grant Thornton said was a matter for the Merseyside Fire and Rescue Authority.


This is what MFRA’s Treasurer stated in an email on the 16th September 2015.

Mr Brace,
        With regard to items B) and C), the Statement of Accounts disclosure of £14k for expenses, as allowed per the CIPFA CODE of Practice, informs the reader of the accounts of the total gross non-employee costs associated with supporting the governance/member service. It goes beyond the disclosure required under legislation and therefore exceeds the £7k reported in the AGM.

        I have explained this to the Authority/s Auditors Grant Thornton and they are satisfied with this explanation.

CIPFA CODE of practice – Final Accounts
 
Members’ Allowances (5)
I77 Authorities are required to disclose the totals of members/ allowances (and expenses) paid in the year …. Authorities in England and Wales might consider whether it would be helpful to provide the wider disclosures in order to give a full picture of the amounts received by members.

Yours

Ian Cummins

Treasurer
Merseyside Fire & Rescue Authority
Headquarters
Bridle Road
Bootle
Merseyside
L30 4YD


However look closely at the table reported to the AGM and you/ll find nothing in the travel and subsistence column for Cllr Newman. Below is a two page invoice for taxi expenses for Cllr Newman.

Merseyside Fire and Rescue Authority councillors expenses page 47 Cabfind.com Cllr Ted Grannell £13 80 Cllr Newman £25
Merseyside Fire and Rescue Authority councillors expenses page 47 Cabfind.com Cllr Ted Granell £13 80 Cllr Newman £25
Merseyside Fire and Rescue Authority councillors expenses page 48 Cabfind.com Cllr Newman £22 Cllr Newman £22
Merseyside Fire and Rescue Authority councillors expenses page 48 Cabfind.com Cllr Newman £22 Cllr Newman £22

And yes, that/s only £69+VAT of the ~£6k. The other 47 pages of this information not included in the expenses figure for councillors at the MFRA AGM are here.

In fact the report on the figures to the AGM states “It is important to note that these are reimbursements for time and expenses incurred by Members, and are not payments in relation to travel and event bookings made directly by MFRA.”

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Rt Hon Frank Field MP asks for report on The Hive

Rt Hon Frank Field MP asks for report on The Hive

Rt Hon Frank Field MP asks for report on The Hive

                                          

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The video above is of the Birkenhead Constituency Committee meeting held on the 8th October 2015 (public question and answer agenda item). The video should start at the point I asked a question which is at the 36 minutes 17 seconds mark.

Rt Hon Frank Field MP (Chair) and Ken Abraham (solicitor (Wirral Council)) at the meeting of the Birkenhead Constituency Committee on the 8th October 2015
Rt Hon Frank Field MP (Chair) and Ken Abraham (solicitor (Wirral Council)) at the meeting of the Birkenhead Constituency Committee on the 8th October 2015

Below is a copy of my question for the Birkenhead Constituency Committee. I submitted it on the 18th September 2015 for its meeting on the 24th September 2015. However the 24th September 2015 meeting was then cancelled and rearranged to the 8th October 2015.


  

The Merseyside Fire and Rescue Authority decided recently to transfer the land by Birkenhead fire station to Wirral Council for a Youth Zone which will be called The Hive.

I also discovered that councillors on Merseyside Fire and Rescue Authority were receiving their allowances in full, but the Merseyside Fire and Rescue Authority was paying any tax or National Insurance due (an arrangement costing Merseyside council taxpayers an extra £10,820.28p). These amounts for tax were not deducted from the allowances they received but instead were paid by the Merseyside Fire and Rescue Authority.

Could the Birkenhead Constituency Committee:

a) give an update on progress on the expected timescales for the Youth Zone called “The Hive”

and

b) explain why some councillors are paying payroll taxes directly out of their allowances, whereas in other cases these taxes are paid not by the politician but by the public? It just seems a basic issue of fairness.


  

The written answer is below.


  

Response from CYPD and Merseyside Fire Service:

a) The Hive is due to open in December 2016.

b) Merseyside Fire and Rescue Service (MFRS) have advised that they have given John Brace an explanation of the figures on a number of occasions. If John Brace would like further information he should contact MFRS directly.


  

However a verbal answer was also given at the meeting which was more detailed. Sadly some of what Jo Burrell said at this point is unclear on the video.

Rt Hon Frank Field MP (Chair) Great, on a) we’ll ask for a report. On b) this is not actually relevant to this Committee because we have no say in it. I’m all in favour of extending our authority but I gather they have written and will continue to take up your points and Merseyside Fire and Rescue Authority will answer your issues on that John.

On where are we with the Hive? [Cllr] Jean [Stapleton]’s not here about this, do you know?

Cllr ??? ???: … Chief Exec.

Jo Burrell (Constituency Manager) That’s the information we’ve received. I don’t know exactly where the, this building is up to, it’s something I would probably have to ask …

Rt Hon Frank Field MP (Chair): Yes but I think whatever the target date is it’s on target, and most of the money seems to have been raised, hasn’t it? So I think it’s actually, it’s huge sums, it’s brilliant that people have made contributions so that will actually go ahead. The police, the Fire Authority John are very happy having a conversation with you by correspondence.

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