Peterborough: Pay rise for cash-strapped authority's councillors

Peterborough City Councillors have approved a pay increase of £155 per annum

Councillors at a cash-strapped authority have voted in favour of receiving a pay rise.

Peterborough City Council was warned by the government about the state of its financial health and proposed a council tax increase to save money.

On Wednesday, councillors voted to increase their basic allowance from £10,508 to £10,663 per annum.

The Conservative minority leader of the council, Wayne Fitzgerald, said: "There will never be a good time to do this.

"We will always be criticised.

"It is difficult but it's the right thing to do."

Wayne Fitzgerald said councillors should approve the increase recommended by an independent panel

An independent panel recommended the councillors allowance be increased by £155 per annum, the Local Democracy Reporting Service was told.

But some councillors did not agree with the pay rise.

Independent councillor Chris Harper said: "When I consider the financial position of this council and that many families are struggling already to pay their bills.. I personally simply cannot support accepting the increase."

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Leader of the Labour group, Shaz Nawaz, said: "In a couple of months' time we will be sat here looking at significant cuts to quite a few areas.

"I think it is important we lead by example."

The increase was approved after 29 councillors voted in favour, 21 voted against and eight abstained.

A review published in November by the Chartered Institute of Public Finance and Accountancy (CIPFA) on behalf of the government found the financial challenges the council faced were "significant and urgent".

In order to save money, the council has proposed a 2.99% increase in council tax, a reduction in some services provided by Aragon, including grass cutting and cleaning, changed to ICT services provided by the authority and a remodelling of the library service.

A consultation on the plan closes on 28 February.