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Local Government: Pay

Volume 504: debated on Friday 29 January 2010

To ask the Chancellor of the Exchequer whether the Government’s policy that public sector posts over £150,000 will require his Department’s explicit approval will apply to local government chief executives. (311659)

The 2009 pre-Budget report announced a set of fundamental reforms to pay-setting for senior staff, including:

“New scrutiny of pay levels above £150,000: the Chief Secretary to the Treasury will approve pay levels in excess of £150,000 for all civil service appointments and appointments to public sector bodies which are subject to Ministerial approval. This will also apply to all bonus payments of over £50,000 where Ministerial sign-off is needed. For public sector bodies where Ministerial approval is not required, the Government expects all organisations making senior managerial appointments in excess of £150,000 to publicly justify this level, and any bonus in excess of £50,000, to the relevant Secretary of State.”

For local government chief executives, the Government expect that any senior appointment in excess of £150,000 will have to be publicly justified to the Secretary of State for Communities and Local Government.