The Independent Remuneration Panel of Sefton Council discussed the council's current financial position and the Members' Allowance Scheme for 2023/24 to 2026/27. Key decisions included recommending an increase in Members' allowances linked to the Local Government Pay Settlement and the continuation of Special Responsibility Allowances for committee chairs and party group leaders.

Council's Current Financial Position

Paul Reilly, Service Manager - Finance, provided a presentation on the council's financial status. He highlighted significant pressures from 2022/23, including children's social care, energy costs, pay awards, and general inflation. Mitigating actions included using General Balances and Earmarked Reserves, a recruitment freeze, and cessation of non-essential expenditure. The council set a robust revenue budget for 2023/24, with substantial investment in children's services amounting to £21 million. However, savings of £8.6 million need to be delivered during 2023/24, with £5.2 million requiring business change.

Reilly noted that the percentage spend on social care has increased consistently, posing a higher risk according to the Chartered Institute of Public Finance and Accountancy (CIPFA) resilience index¹. The council's reserves are lower than neighbouring authorities, and the budget must be delivered with the funding in place. For 2024/25 to 2026/27, the council faces an estimated budget shortfall of £10 million per annum. The council aims to extend and develop previous Framework for Change programmes to achieve financial sustainability.

Whilst the position for 2025/26 and 2026/27 is very uncertain, the Council will have to start planning for delivering further savings, said Paul Reilly.

Members' Allowance Scheme 2023/24 to 2026/27

The panel considered a report from the Chief Legal and Democratic Officer on the Members' Allowance Scheme. The report sought views on whether to recommend an increase in Members' allowances, the indexation options for the increase, and the duration of annual adjustments. It also addressed the Special Responsibility Allowances for committee chairs and party group leaders.

The panel reviewed several appendices, including the current scheme of Members' Allowances, a comparison of allowances in Liverpool City Region local authorities, and the financial impact of potential indices.

The panel resolved to recommend to the council that an increase in Members' allowances be linked to the Local Government Pay Settlement, with annual adjustments continuing up to and including the 2026/27 municipal year. They also recommended the continuation of Special Responsibility Allowances for committee chairs and party group leaders.

For more details, you can refer to the Minutes of Previous Meeting and the Public reports pack 10th-Jun-2024 10.30 Independent Remuneration Panel.