Councillors' remuneration and expenses recommendations: SG response

Response to Recommendations

Recommendation 1 – …the Committee recommends that the role of Councillor continues to be fulfilled on a part-time basis, while the role of Senior Councillors is likely to require to be fulfilled on a full-time basis.

6. The Scottish Government notes this recommendation. We recognise the key role that all Councillors play in local democracy and welcome the contribution they make irrespective of the number of hours worked.

Recommendation 2 – …the Committee recommends that the definitions “full-time” and “part-time” should no longer be applied when describing the role of Councillors, and that the role should be treated as a public office within Scotland’s democratic processes, as is the case for MPs and MSPs.

7. The Scottish Government notes this recommendation. Regulations on Councillor pay and salary do not make references to “full-time” and “part-time”. Going forward we will continue to ensure that any references to Councillors in Scottish Government material do not define roles or responsibilities by time commitments.

Recommendation 3 – The Committee recommends that all 10 councils currently within Band A should be funded to enable the appointment of up to a maximum of 10 Senior Councillors and that no other changes to the maximum numbers of senior Councillors in Bands B, C and D are required.

8. The Scottish Government recognises that the workloads of Councillors have changed over time and that there can be additional pressures on Senior Councillors in some local authority areas due to insufficient numbers. The Scottish Government is therefore content to accept this recommendation in principle. We will introduce regulations to take effect from 1 April 2025 to enable the appointment of up to 10 senior Councillors in existing Band A authorities. However, local authorities are responsible for paying Councillor salaries from their annual budgets and the costs of increasing the number of senior councillors would need to be met from within existing allocations.

Recommendation 4 – The Committee recommends that all councils currently within Band A should move into Band B, and that there should be no change to the councils currently within Bands C and D.

9. As with recommendation 3, the Scottish Government recognises that the work of local authorities and councils has increased in recent years and that there is now less distinction in responsibilities between Councillors whose local authorities are in Band A and those in Band B. The Scottish Government is therefore content to accept this recommendation and will introduce regulations to take effect from 1 April 2025 to make this change.

Recommendation 5 – The Committee recommends that all bandings are reviewed by SLARC in advance of each Council election.

10. The Scottish Government is content to accept this recommendation in principle. However, given the timing of this report we would not intend to conduct a further review of bandings in advance of the next planned local government elections to take place in 2027. In addition, the Scottish Government will consider whether SLARC should be re-convened or if another body or group is better placed to undertake this review at the time that any banding review is commissioned.

Recommendation 6 – The Committee recommends that the salaries of Councillors be set at 80% of the median salary for all employees in the public sector in Scotland as published in the Annual Survey of Hours and Earnings (ASHE) resulting in an annual salary of £24,581 with effect from 1 April 2024.

Recommendation 7 – The Committee recommends that this proportionate link to median public sector salaries in Scotland is accepted as the methodology on which Councillor salaries are established.

11. The Scottish Government has considered recommendations 6 and 7 in tandem as they are related. Recommendation 6 which sets a new base salary for Councillors using the finalised data from the 2022 Annual Survey of Hours and Earnings (ASHE) is accepted and will be implemented from 1 April 2025. However, we consider that recommendation 7 is inconsistent with recommendation 11 which relates to the annual uplift mechanism which should be applied to all Councillor salaries.

12. The Scottish Government therefore notes recommendation 7 but does not intend to use this methodology to establish Councillor salaries on an annual basis. Instead, the new salary proposed by SLARC under recommendation 6 will be uplifted annually by the methodology set out in recommendation 11, ensuring consistency with increases to the other salaries.

Recommendation 8 – The Committee recommends that the salaries of Council Leaders in the current Band D (Glasgow and Edinburgh) are benchmarked at the salary of a Member of the Scottish Parliament (MSP)^[1].

Recommendation 9 – The Committee recommends that the salaries of Council Leaders in the current Band C be set at 85% of the salary of those in current Band D; and those in the combined Bands A and B be set at 70% of the salary of those in the current Band D.

Recommendation 10 – The Committee recommends that the salaries of Civic Heads and Senior Councillors continue to be set at up to a maximum of 75% of the salary of their Council Leader.

13. The Scottish Government has considered these three recommendations together given their relationship and interdependencies and is content to accept them. We will introduce regulations early in 2025, to take effect from 1 April 2025, which will set new salaries for Council Leaders, Civic Heads and Senior Councillors on the basis of these recommendations.

Recommendation 11 – The Committee recommends that the salaries of all Councillors continue to be uplifted on an annual basis as per the current arrangements introduced in 2017, which are in line with the median increase in earnings of public sector employees in Scotland, as published by the ASHE.

14. The Scottish Government accepts this recommendation and will continue to use the existing methodology for annual uplifts to all Councillor salaries. Salaries to be paid from 1 April 2025 will be those which SLARC recommended in its report but uplifted by this mechanism to reflect the normal annual uplift that would have been paid if the new salaries had been introduced from April 2024. The uplifted amounts will be set out in the regulations to be laid early in 2025 which will bring the new salaries into effect.

Recommendation 12 – The Committee recommends that the current regulations (2010) on Councillors’ expenses for travel, subsistence and accommodation should be replaced by the provisions applying to officers in their respective Councils.

15. The Scottish Government accepts this recommendation in principle but considers it requires further consideration as the Committee did not provide detailed evidence on this area. We recognise, as outlined in the Committee’s remit, that there is a need to review the expenses paid to Councillors to meet the reasonable costs actually incurred by them in delivering their roles. However, given the knowledge, expertise and interests of local authorities in meeting the costs of paying Councillor expenses we consider that the Scottish Government is not best placed to undertake such a review. Instead, we are of the view that this sits better with local government given the range of specific local circumstances that may apply, but with input from other bodies as appropriate.

16. The Scottish Government will make any required regulations to implement any changes recommended by such a review as and when required and, if completed in time, before the next planned local elections.

Recommendation 14 – The Committee recommends that resettlement (severance) payments are introduced for Councillors losing office. This should be modelled on the system applied to MSPs and should be in place for the next election cycle.

17. While we recognise some of the reasoning behind the proposed introduction of a resettlement/ severance payment further consideration with COSLA and Local Authorities is required for this recommendation, particularly around how such a scheme would operate in practice.

18. Given costs associated with making a resettlement payment would be met by local authorities we are of the view that this best sits with local government. However, the Scottish Government is happy to work with COSLA, to give it further consideration in advance of the next planned local government elections and make any necessary provisions required to introduce it should that be the decision of local government.

Recommendation 15 – The Committee recommends that the Scottish Government considers whether existing legislation needs to be reviewed to strengthen requirements on Councillors to perform their duties. Given the Committee’s recommended link of Councillor pay to 80% of median public sector pay, councils should monitor and report upon Councillor activity levels and attendance at formal council meetings.

19. The Scottish Government notes this recommendation. Councillor performance is primarily a matter for individual local authorities and, if appropriate, the Standards Commission^[2]. The Scottish Government would expect local authorities, in the first instance, to ensure that Councillors are performing the duties required and expected of them without the need for further or amended legislation.

Recommendation 18 – The Committee recommends that the Scottish Government and COSLA make a joint public statement endorsing the important role played by councils and Councillors in delivering a wide range of services. This statement should spearhead a wider multi-media public awareness campaign between now and the next Council Election, designed to raise public awareness and encourage potential candidates to stand for office.

20. The Scottish Governments accepts this recommendation in part. In advance of the next planned local government elections, we are content to work with COSLA on a public statement endorsing the role of Councillors. However, in respect of the public awareness campaign we consider that encouraging individuals, particularly those from under-represented groups, to stand for election is more a matter for COSLA, political parties and other bodies, rather than for Scottish Government.

Recommendation 21 – The Committee recommends that the Scottish Government and COSLA, working alongside representatives drawn from all under-represented groups, should consider how best to enhance supports for Councillors in these groups, and develop proposals to support, encourage and enable more people form under-represented groups to stand for office, particularly women, young people and people with a disability.

21. The Scottish Government notes this recommendation but considers that supporting existing Councillors and encouraging diverse representation is better led by COSLA, individual local authorities and political parties, without influence from central government.

22. The COSLA Barriers To Elected Office Special Interest Group was established in 2022 to identify actions to address barriers to groups and individuals who are currently under-represented amongst Councillors. Given this activity, the Scottish Government considers it is best that this Group completes its work without duplication by Scottish Government.

Recommendation 22 – The Committee recommends that the Scottish Government and COSLA work together to ensure adequate provision is made to provide a minimum level of Members Support Services.

23. The Scottish Government notes this recommendation but considers the provision of support to Councillors is better taken forward by COSLA, working with individual local authorities, taking account of local circumstances and needs.