Members of crisis council delay own 18% pay rise

Councillors voted not to hand themselves an 18% pay rise

Councillors in Birmingham have voted to postpone a planned 18% increase to their own pay.

A report from the Birmingham Independent Remuneration Panel had recommended the uplift over four years.

But councillors agreed, at a meeting of the full council on Tuesday, to delay the planned rises.

It would have taken the basic councillor allowance from £18,876 to £19,744 and the leader’s allowance from £56,579 to £67,788 by 2027.

A late note to the report, which was initially written in April 2023, highlighted the recommendation had been made before the scale of the financial issues at the council were known.

The Labour-run authority effectively declared bankruptcy by issuing a section 114 notice in September. The council needs to save £300m over the next two years and its financial challenges have been compounded by a £760m equal pay bill and an £80m overspend on an IT project.

Rose Poulter told councillors "a lot has changed" since the report was compiled

Rose Poulter, Chair of the Birmingham Independent Remuneration Panel, addressed the meeting and said the decision on whether to take the recommended rises was the responsibility of councillors.

She said: “A lot has changed since we signed it off back in April 2023.

“But we still stand by the recommendations we make to you, but fully accept that so much has changed there are issues that you as a council need to take into account.”

'Right and appropriate'

Labour leader of the council Councillor John Cotton moved an amendment, backed by opposition groups, to delay the pay rises.

Speaking during the meeting, he said: “We are in very different times to those in which the report was researched and authored.

“The serving of the section 114 notice, the severe financial challenges facing this council and the knowledge that in a couple of weeks we will be taking some incredibly difficult decisions that will result in cuts and potential losses of jobs means that we all need to reflect on what’s right and what’s appropriate in those circumstances.”

Conservative opposition leader Councillor Robert Alden backed the postponement but did raise concerns about the possible impact.

He said: “The most fundamental principle we must have, both as a council and as a democracy at large in the country, is that no-one for financial reason should be able not to stand for election.

“Democracy means nothing if only certain people are eligible to stand.”