Council 'fat cat' pay soars as tax rise looms

10:36am Thursday 13th March 2008

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Heads of Sutton Council are awarding themselves pay rises of up to £10,000 a year while hitting householders with a council tax rise above the rate of inflation.

The town hall faces a huge backlash from residents and workers after agreeing to increase the salary of its strategic directors by 11 per cent to £105,000.

If there’s cash left over it should be given back to hard-working families footing the bill, not handed to high-earning fat cats.”

TaxPayers' Alliance

The "fat cat" pay, which was approved by executive councillors on Monday night, will cost taxpayers £384,000 over three years. It means chief officers now earn more than ministers.

The council claims performance-linked pay rises are needed to lure the best candidates when outer london boroughs offer bigger salaries.

But the largesse has infuriated residents, with the average Band D bill increasing by £42.39 to £1,418, and free garden waste collection services ending.

The cost of the salary awards would pay for garden waste to be collected from 11,000 homes for a year.

Matthew Elliott, chief executive of the TaxPayers' Alliance, said: "These pay rises are obscene. Taxpayers are struggling under the burden of record council tax bills, services are struggling, and yet Sutton Council can build up already-high executive salaries.

"Taxpayers want their money spent on essential services. If there's cash left over it should be given back to hard-working families footing the bill, not handed to high-earning fat cats."

Councillor Tony Shields, deputy opposition leader, said: "A 10-grand-a-year increase is the final insult to taxpayers struggling to make ends meet while smirking Lib Dems congratulate themselves for whacking up council tax yet again.

"Councillor John Drage, lead member for resources, obviously went to the sheriff of Nottingham school of finance, as he is fleecing the poor to pay the already well-off."

The double-figure pay rise is much higher than the consumer price index, the Government's preferred measure of inflation, which is at 2.2 per cent.

It is also in stark contrast to figures for most public sector workers. Police, teachers, civil servants and nurses are expecting pay increases below 2.32 per cent.

Coun Drage said salaries of the council's 80 senior managers were rising by about four per cent on average, despite some increases above 10 per cent. The awards amount to an extra three pence a week on average household bills.

"This performance-related increase will bring our senior manager group more in line with the outer London council average, as we pay up to 25 per cent less than our neighbours," he said.

"One way we can improve, especially when we get such a poor Government grant, compared with other councils, is by employing the best people in key positions. We can't attract and retain the best staff if the pay on offer is below other organisations."