Directors at debt-ridden Thurrock Council awarded 4% pay rise

Earlier this year, Thurrock Council increased the tax it collects from residents by 9.99%

Senior managers at a council that is effectively bankrupt with debt of about £1.3bn have been granted a 4% pay rise.

The decision means the chief executive at Thurrock Council in Essex will be entitled to a salary of £207,000.

The council is in debt following a series of failed investments in solar farms and council tax for residents was increased by 9.99% earlier this year.

Councillors were told the directors could take legal action if the pay increase was not granted.

Councillors in Thurrock, pictured at a previous full council meeting, were told they were legally obliged to approve the 4% pay rise

Graham Snell, Conservative cabinet member for finance, human resources and payroll, said he and colleagues had to "honour a contractually obligated pay increase" even though "it's not something we are comfortable with".

He said they could not risk senior managers taking the council to tribunals and he told a full council meeting on Wednesday: "We don't want to spend thousands and thousands of pounds [at tribunal] on what is probably going to be a fruitless defence of a policy we cannot defend."

'Utter Horlicks'

A 4% pay rise for junior employees was approved in March, but the local authority commissioned a review on the increase for senior managers - a team made up of directors and assistant directors.

These salaries for 2023-24 will be backdated to April.

John Kent, the labour opposition leader, told the meeting: "I have absolutely no pleasure and no enthusiasm in saying that I don't believe we have any alternative but to agree with the recommendation."

Conservative James Halden said the council had "ended up in an utter Horlicks" and he promised to abstain on the vote.

A total of 25 councillors approved the decision, five voted against and six abstained.

There are 19 senior managers at Thurrock and the 4% increase will cost the local authority £136,000 per year, the council says.