A recent report has shown that the number of high-earning officials receiving salaries over $100,000 at city halls has surged to an all-time high.
Even though many households are hit with significant council tax increases due to inflation, leading to higher costs for residents starting today, over 262 senior local government officials received compensation exceeding £200,000 through salaries, pensions, severance packages, and bonuses.
This figure increased by 87 from the previous year – marking a 50 percent rise.
The group earning over £150,000 increased from 829 to 1,092 individuals (a rise of 32 percent), whereas those receiving at least £100,000 jumped from 3,105 to 3,906 people (an increase of 25 percent).
The research conducted by the TaxPayers' Alliance additionally revealed that there were 238 leaders of councils had salaries in the 2023-24 period exceeding what a Prime Minister can claim at £172,153 .
Some departed with exit packages worth over £450,000, while others received bonuses exceeding £50,000.
Nottingham And the councils of Woking had eight officials each receiving parcels valued at over £100,000 apiece, even as both entities essentially declared bankruptcy in 2023.
In the previous year, Woking was permitted to increase council taxes by 10 percent for struggling families as a consequence.
The tally receiving six-figure pay packages is the highest since the TaxPayers' Alliance began compiling its annual 'Town Hall Rich List' in 2007.
John O'Connell, the head of the advocacy organization, stated: "This year has set numerous records for taxpayers as the nation races toward an unprecedented level of taxation, even though the government sector keeps amassing more benefits."
'The number of council staff with six-figure remuneration packages has surged at the same time that services are being slashed and council tax is being hiked above inflation.'
While it acknowledged that this was partially driven by a higher number of local authorities publishing accounts, it will anger families who face inflation-busting council tax hikes of 5 per cent from today.
And it comes alongside a raft of other hikes, including water, energy, broadband bills and road tax hitting in what has been dubbed 'Awful April'.
Most councils in England announced last month that they were planning to raise council tax bills by 4.99 per cent – the maximum amount permitted by the Government without seeking permission .
It will raise the standard Band D bill from £2,171 to £2,280.
Certain councils have been permitted to enforce increases of up to 10 percent, such as Windsor & Maidenhead, Bradford, Birmingham, and Somerset.
This follows councils spending nearly £52 million on establishing Equality, Diversity, and Inclusion positions last year.
Many are continuing to permit employees to work remotely, and an increasing number are now allowing their staff to connect from overseas as well.
Approval numbers jumped from 73 in the period of 2020/21 to 731 in 2023/24. Some local governments acknowledged that they had made it an official strategy to permit employees to telecommute overseas for up to one month annually.
Meanwhile, numerous city hall administrations are reducing their offerings like garbage pickup, road maintenance, and library facilities.
Six councils have essentially run out of money, and numerous others say they are close to doing so as well.
The largest compensation package went to Annemarie O'Donnell, who previously served as the chief executive of Glasgow City Council. The overall payment amounted to £567,317.
The compensation package featured a salary of £209,472 along with £357,845 allocated for pension contributions. This significant pension allocation was attributed to increased pressures on funding costs prior to her planned retirement.
The council, with 42 executives earning £100,000 or more, was forced to consider cutting services following an overspend of £38 million on its 2024/25 budget back in February earlier this year.
Conservative MP Joe Robertson said councils 'always seem to be able to find the money to fund council chiefs' six-figure salaries.
A spokesman for the Ministry of Housing, Communities and Local Government, headed by Deputy Prime Minister Angela Rayner, said: 'While councils are independent employers responsible for managing their own finances, we have been clear that they should use taxpayers' money wisely and carefully consider the impact of their decisions.'
And former Tory leader Sir Iain Duncan Smith said: 'As others have struggled to get pay rises at all after the Chancellor Rachel Reeves's job-destroying tax hike [to employers' National Insurance], these public servants seem to think they are living in another country – where the rules don't apply to them.'
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