To receive a presentation from representatives of Welsh Government on the subject of the Independent Remuneration Panel in respect of Town and Community Councillors
Minutes:
The Chairperson invited to the meeting Mr. L Jones, from Welsh Government, and Ms. S. Willey and Mr. G. Owens from the Independent Remuneration Panel for Wales, in order to give a Presentation on the above topic.
The Presentation covered the following:-
Community and Town Council Groupings
The Panel believed that the wide variation in Community and Town Council size, means the responsibilities and accountabilities of Councillors must also vary.
Councillors managing income of expenditure of £1m and those delivering significant services, including those perhaps delegated from Principal Councils, are operating in a much more complex environment than a Council, with an annual budget of less than £30k.
The Panel examined a range of measures we could use as the basis for grouping Community and Town Councils to reflect these differences.
We concluded that using income or expenditure figures better reflects the activity levels of a Council than population ratios or precepts which the Panel found did not always correlate to income or expenditure.
Reflecting on consultation feedback on the draft Annual Report, the Panel has formed 3 groups of Community and Town Councils on the basis of the level of income or expenditure, whichever is the highest, in the previous financial year.
It was also easier for Councils to understand which group they belong to ie:-
Community/Town Council Group Income or Expenditure in 2017-18 of
A £200k and above
B £30k - £199,999k
C Below £30k
The Officers from the IRWP then went on to talk about various Determinations made as follows:-
Determination 44
Community and town councils in Groups A and B must make available a payment to each of their members of £150 per year for costs incurred in respect of telephone usage, information technology, consumables etc.
Determination 45
Community and town councils in Group C are authorised to make available a payment to each of their members of £150 per year for costs incurred in respect of telephone usage, information technology, consumables etc.
Determination 46
Community and town councils in Group A must make available an annual payment of £500 each to a minimum of 1 and a maximum of 5 members in recognition of specific responsibilities. This is in addition to the £150 payment for costs and expenses.
Determination 47
Community and town councils in Groups B or C are authorised to make an annual payment of £500 each to up to 5 members in recognition of specific responsibilities. This is in addition to the £150 payment for costs and expenses if that is claimed.
Determination 48
Community and town councils are authorised to make payments to each of their members in respect of travel costs for attending approved duties. Such payments must be the actual costs of travel by public transport or the HMRC mileage allowances as set out in the annual report.
Determination 49
If a community or town council resolves that a particular duty requires an overnight stay, it may authorise reimbursement of subsistence expenses to its members at the maximum rates set out in the annual report on the basis of receipted claims.
Determination 50
Community and town councils are authorised to pay financial loss compensation to each of their members, where such loss has actually occurred, for attending approved duties as set out in the annual report.
Determination 51
All Community and town councils must provide for the reimbursement of necessary costs for the care of dependent children and adults (provided by informal or formal carers) and for personal assistance needs up to a maximum of £403/month on production of receipts from the carer. Reimbursement must be for the additional cost incurred by members in order for them to carry out their approved duties. Reimbursement shall only be made on production of receipts from the carer.
Determination 52
Community and town councils are authorised to provide a Civic Head payment to the mayor/chair of the council up to a maximum of £1,500 to undertake the functions of that office. This is in addition to the £150 payment for costs and expenses and the £500 senior salary if these are claimed.
Determination 53
Community and town councils are authorised to provide a Deputy Civic Head payment to the deputy mayor/deputy chair of the council up to a maximum amount of £500 to undertake the functions of that office. This is in addition to the £150 payment for costs and expenses and the £500 senior salary if these are claimed.
Members of Principal Councils
Members in receipt of a band 1 or band 2 senior salary from a Principal Council (Leader, Deputy Leader, Member of the Executive, cannot receive any payment from a Community or Town Council other than travel and subsistence expenses and reimbursement of the costs of care.
However, they can hold a senior role in the Community or Town Council.
Annual Timetable
March
Council must consider each determination in the IRPW’s final report and record its formal decision in relation to the non-mandated determinations which will apply to all members.
May
From the date of the General Meeting, all mandated payments and those non-mandated payments the Council has adopted to be made to all members. Proper notice must have been received by the Clerk from any member making a personal decision to forgo part or all of the payments.
September (by 30th)
Publish, and send to the IRPW, details of all payments made to individual members for the previous financial year in an ‘Annual Statement of Payments. The IRP has produced a pro forma to help with this, which is available to download from the Panel’s website. This pro forma can be amended each year.
October
Consider the determinations in the IRPW’s draft report for the next financial year and use this to inform Budget plans.
As this concluded the Presentation, the Chairperson opened up the meeting for questions.
A Member noted that allowances/expenses could be payable to Town/Community Councillors, but raised concern over the fact that they had no resources/and or capacity to arrange for or recruit a suitable Responsible Finance Officer to undertake regularly calculating these payments, and wondered if the County Borough Council for that particular area could assist to this end, through for example, a type of Service Level Agreement. He felt this was something that could be taken up with the HRMC. He also asked if these payments would be spread out over the course of a year, or paid as a one off lump sum, and if such payments would be subject to income tax and national insurance reductions.
A member of the IRWP advised that it was entirely up to the appropriate Town/Community Council if they paid the above in instalments or as a one-off payment, and a body such as One Voice Wales would be able to give them advice on what kind of payments were subject to tax etc. Obviously expenses would not be subject to tax/national insurance he added, due to the fact that whatever the Town/Community Councillor paid out of their own pocket, they would be entitled to receive this back as a net sum reimbursement. A payment in the form of an allowance however, would be subject to tax as it was a sum of money that would required to be declared by the person in receipt of this, at the end of a tax year.
A Member felt that it was important to look to improve levels of diversity in respect of Town/Community Councillors, particularly given that in the recent local elections there had been 66% of uncontested seats at Town/Community Council level, with the majority of seats being occupied by white males. He felt that it was not shameful for Town/Community Councillors to accept expenses and allowances in situations where this was permitted. He added that whilst local authorities should make it known to the public the extent of payments they make to Councillors with Town/Community Councils also adopting the same approach, he asked the IRWP representatives if it was necessary to actually name the members who were in receipt of such payments.
A member of the IRWP, advised that names of Town/Community Councillors who are paid any kind of payment for a particular role they fulfil in a Town/Community Council do have to be named as they do if they are serving a County Borough Council, as this extent of information reflects accountability to the constituents the particular Authority are serving. These payments are also set by the IRWP and not the Town/Community Council, and it is a requirement of this body, for a Town/Community Council to be open and transparent to the general public when it comes to payments to certain key members. Though this was only applicable to payments and allowances, as opposed to expenses that any Town/Community Council had paid out and was then re-claiming back. The public did not need to be apprised of this he added.
A Member asked, if a particular Town/Community Council happened to serve on two such Councils, could they in effect claim twice for undertaken a specific role for which a payment could be claimed, to which a representative of the IRWP replied that they could. He clarified that the IRWP advised Town/Community Councils as to what posts there could be a payment or an allowance for, and it was open for them to then decide if they wished to adopt this. He emphasised, that the payment or allowance was not set by Town/Community Councils but by the IRWP. Town/Community Councils just had the scope to adopt these or otherwise, should Members wish to accept any such payments. Town/Community Councils did however, have the power to decide how many roles could be subject to a payment, as long as the amount for any such given role did not exceed the level set by the IRWP.
A Member advised that it would be helpful if the Annual draft IRWP report was made available earlier, so that it was more in line with the time when Town/Community Councils set their precepts.
An IRWP representative confirmed that the timetable for establishing the draft IRWP was set by Welsh Government, however, he added that the IRWP could take this point up with them.
RESOLVED: That the Presentation be noted.