PAPER E
Purpose: For Decision

Committee

FULL COUNCIL

Date

19 SEPTEMBER 2018

Title

REPORT OF THE INDEPENDENT REMUNERATION PANEL ON
THE MEMBERS’ ALLOWANCES SCHEME – 2018/19

Report of

ASSISTANT DIRECTOR OF CORPORATE SERVICES AND
MONITORING OFFICER, AND INDEPENDENT CHAIRMAN OF
THE INDEPENDENT REMUNERATION PANEL

EXECUTIVE SUMMARY
1.

The Independent Remuneration Panel (IRP) has undertaken a review of the
Members’ Allowances Scheme for 2018/19 taking into account the operation
of the changes made at Full Council in May 2017 following the local elections.
These changes revised the arrangements for Scrutiny and Policy Committees,
removal of the Employment Committee, creation of an Appointments
Committee and reinstatement of Delegated Member Decisions.

2.

This report recommends that Full Council approves the recommendations
made by the Independent Remuneration Panel in its report, which is attached
as an appendix to this report. The report recommends that the Basic
Allowance is increased by 2% to £7,854 and the Special Responsibility
Allowances (SRAs) for 2018/19 be as set out in the table in the
recommendation. The report sets out the matters considered by the panel

BACKGROUND
3.

The last review undertaken by the panel was in the autumn of 2017, with the
recommendations submitted to council on 17 January 2018 for consideration.

4.

On the 5 May 2017 local elections took place for the 40 council members.
Following the election, and the change in the administration, a report was
considered by council on the 17 May 2017 which proposed changes to the
committee/decision making arrangements. Whilst the last review took into
account of the new arrangements, the changes had been in place for less
than a year and so this review has, in addition to reviewing the basic
allowance, reviewed the SRA’s with the benefit of a greater passage of time.

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 5.

The members of the Independent Remuneration Panel are selected following
an open advertisement being published and applicants invited for interview.
The current members of the Independent Remuneration Panel are:
Mike Anderson (chairman);
Brian Herbert;
Max Morrison;
John Hayes.

STRATEGIC CONTEXT
6.

A fair and transparent allowances scheme will help to attract and retain the
quality of councillors needed to help deliver all the corporate themes.

7.

The panel is very keen that the Member’ Allowances Scheme should be open,
accountable and clear. Publication on the council’s website of the panel’s
report, the allowances’ scheme, and the allowances paid annually to each
member and members’ activities through the year will help demonstrate this.

CONSULTATION
8.

The panel invited views from all current members about the panel’s
suggestions and interviewed a small number of members and officers. The
results of this exercise are set out in the panel’s report. External
benchmarking data from the south east employers was also considered.

FINANCIAL / BUDGET IMPLICATIONS
9.

The total current budget for members’ allowances, which includes on Island
travel, is £453,865. Members of the IRP did not consider the budget envelope
as part of their consideration. That is however a matter for members to
consider.

10.

Having considered all the issues the IRP is recommending an increase in the
basic allowance by 2%, from £7,700 to £7,854. Some changes to the SRAs
are also proposed. These are a small increase to the Adult Social Care and
Health Policy and Scrutiny Committee Chair, a small increase to the Pension
Fund Chair, a small decrease in the Chair of Licencing, and the addition of a
SRA for the Group Leader of a group of 5 or more.

11.

The IRP is also recommending an annual percentage increase to be applied
in the event that the IRP determine otherwise. The increase (if any) is to be
the same as the annual percentage increase agreed for the majority of Isle of
Wight Council employees to whom the NJC terms and conditions apply. It will
be applied once the Local Government pay settlement pay rate is known, and
will apply from April in each year unless a further review by the IRP
determines otherwise.

12.

The actual amounts paid to members have always been published on an
annual basis, and Freedom of Information Act requests asking for the details
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 of allowances paid to members are regularly received and dealt with. The
overall allowances scheme is available on the council’s website.
LEGAL IMPLICATIONS
13.

The Local Authorities’ (Members Allowances) (England) Regulations 2003
govern the process of making payment of allowances to members of local
authorities and related bodies. The regulations require the council to have
regard to the recommendations made in the attached report. While Full
Council is not bound by its recommendations, it would be required to give
reasons for departing from the recommendations of the panel. However, Full
Council does not have to accept the recommendations. It is also of course
open to elected members to decline to accept their full allowances to which
they are entitled.

14.

The regulations also require the council to make copies of the panel’s report
available for public inspection, to provide copies on request and to publicise,
in the local paper, the existence of the report of the Independent
Remuneration Panel and any decisions that the council makes once it has
considered it.

15.

Members should also be aware that the monitoring officer, in accordance with
the powers delegated to her by Full Council, on 19 June 2013 granted a
general dispensation allowing all members to speak and vote on this
recommendation, even though it deals with the allowances that members
receive.

EQUALITY AND DIVERSITY
16.

The council has to comply with Section 149 of the Equality Act 2010. This
provides that decision makers must have due regard to the elimination of
discrimination, victimisation and harassment, advancing equalities, and
fostering good relations between different groups (race, disability, gender,
age, sexual orientation, gender reassignment, religion/belief and marriage/civil
partnership).

17.

All members were given an opportunity to comment on the scheme and make
their views known to the panel. The panel took into account the need for the
scheme to not exclude any individuals from becoming a member, balanced
against the members’ roles and public expectation, and the panel believes
that the current scheme and recommendations in the report meet these.

OPTIONS
18.

The options are:
(i) to approve all of the panel’s recommendations;
(ii) not to approve the recommendations;
(iii) to approve the recommendations as amended by council.
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 RISK MANAGEMENT
19.

The attached report (Appendix A) sets out the panel’s conclusions and
methodology as to how it arrived at its recommendations. There is a
reputational risk of the members setting their own allowances, but this is the
process required by legislation, and this risk is mitigated by the independence
of the recommendations of the Independent Remuneration Panel.

EVALUATION
20.

The Independent Remuneration Panel has considered a range of evidence
and benchmarking data in reaching its conclusions and believes its
recommendations are appropriate, justifiable, and equitable.

RECOMMENDATION
21.

To approve Option (i) and agree the panel’s recommendations as follows:
(a)

That the Special Responsibility Allowances (SRAs) for 2018/19 be as set out
below:

Position

Special
Responsibility
Allowance

Multiplier of
the basic

Leader

2.00

£15,708.00

Deputy Leader

1.25

£9,817.50

Cabinet Member

1

£7,854.00

Scrutiny Chair

1

£7,854.00

Scrutiny Vice Chair

0.2

£1570.80

Adult Social Care and Health Policy and
Scrutiny Committee Chair

0.6

£4,712.40

Children’s Policy and Scrutiny Committee
Chair

0.5

£3,927.00

Regeneration and Environment Policy and
Scrutiny Committee Chair

0.5

£3,927.00

Audit Chair

0.4

£3,141.60

Planning Chair

0.8

£6,283.20

Planning Vice Chair

0.2

£1,570.80

Licensing Chair

0.3

£2,356.20

Pension Fund Chair

0.4

£3,141.60

Appeals Chair

0.2

£1,570.80

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 Chairman of Council

0.7

£5,497.80

Vice Chairman of Council

0.2

£1,570.80

Leaders of Groups of 5 or more

0.1

£785.40

Leaders of Groups of 10 or more

0.2

£1,570.80

Hampshire Police and Crime Panel Chair*

0.6

£4,712.40

*Not from the Isle of Wight Council budget (see paragraph 12 of the IRP
report).
(b)

That the amended allowances are payable from 1 April 2018.

(c)

That the process for the distribution of the on Island travel lump sum be
left unchanged. This is currently based on the distribution of a lump
sum divided between the members on the basis of a formula reflecting
distance of county hall from their homes and office they hold. However,
the panel will continue to keep this under review in future reports.

(d)

That all other allowances (for example those for co-opted members and
child allowance) remain unchanged.
(A full copy of the proposed new members’ allowances scheme is set
out in the appendix to the attached report of the Independent
Remuneration Panel.)

APPENDICES ATTACHED
Appendix A: A review of the Isle of Wight Council Members’ Allowances Scheme –
Fifteenth report of the Independent Remuneration Panel 2018.
Contact Point:

Helen Miles, Assistant Director of Corporate Services and
Monitoring Officer;  821000 e-mail helen.miles@iow.gov.uk

HELEN MILES
Assistant Director of Corporate
Services and Monitoring Officer

MIKE ANDERSON
Chairman
Independent Remuneration Panel

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