Thursday, January 31, 2008

Overstaffed, overpaid, overrated...

Ever wonder where all the extra council tax goes - when it has more than doubled in 10 years - and, as a double whammy, why services change but don't seem to improve that much (if at all)?...well, one possible contributory factor (no doubt!) is that the number of local authority middle managers on £50,000 or more has risen more than nine times in the last decade, you didn't misread that: 9 times

Council Spending Uncovered 2: Middle Management Pay [Taxpayers' Alliance]

Key Findings:
1. The average local authority is employing over nine times as many people on £50,000-plus packages as ten years ago – 66 people in 2006-07 compared with 20 people in 2001-02 and 7 people in 1996-97.
2. By contrast, in the economy as a whole, the number of people earning more than £50,000 has increased by less than three times over the past ten years.
3. The average local authority spent over £4 million employing people on £50,000-plus remuneration packages last year.
4. The total bill for council middle and senior managers on £50,000-plus remuneration packages was almost £2 billion last year almost £1 in every £11 of total council tax revenues.
5. The remuneration of local authority middle and senior management is racing past that of MPs. There were 12,600 local authority middle and senior managers being paid at least £60,000 last year – equal to or exceeding the £60,277 salary of MPs in November 2006.

Matthew Elliott, Chief Executive of the TaxPayers’ Alliance, said:
"With council tax doubling in the past decade, it’s extremely disappointing that town halls have chosen to hire a new class of middle managers, many of whom are being paid more than MPs. Local authorities should study these findings carefully to see where savings can be made, instead of using their half billion pound PR machine to obscure their finances from taxpayers."
Council Spending Uncovered, No. 2: Middle Management Pay (PDF) (opens in new window)

The Local Government Association response "Councils respond to Taxpayers' Alliance report on middle managers" can be found on the LGA website HERE.

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