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Chapter 3 - Salaries

Current arrangements

3.1 All councillors are currently entitled to receive a maximum basic allowance of £6,102, £6,712, or £7,321, depending upon the population of their council area.

3.2 In addition, many councillors receive special responsibility allowances ( SRAs), set at various levels, for carrying out particular roles in the council. Typically, SRAs are paid to council leaders or conveners, conveners or chairs of council committees, deputy conveners of council committees, cabinet members, provosts, conveners of area committees, and a range of other posts specific to individual councils. The rates for SRAs are set by councils. In some councils all councillors, or a significant majority of councillors receive SRAs. In a small number of councils, a 'civic allowance' is also paid to some councillors.

3.3 This combination of basic allowances, SRAs and civic allowances means that the average annual income for councillors in the financial year 2004/05 ranged from £9,429 in one council to £19,474 in another. The average for Scotland was £14,171 (based on information provided by councils as at 30 November 2005). Full details of each councils' spend on councillors' allowances are given in Chapter 7.

3.4 We have a number of concerns about these arrangements:

• The level of the basic allowance does not reflect adequately the level of responsibility held by councillors.
• The population of a council area does not have a bearing on the workload of basic councillors to such an extent that three different rates of basic allowance are necessary.
• Some councils overuse SRAs. The fact that all councillors in a council can have 'special responsibilities' that merit an additional allowance is untenable.
• We heard on council visits that some councils have chosen to use SRAs to their utmost in order to 'top-up' the basic allowance, with little reference to responsibility held.
• There are limited safeguards around the use of SRAs and no restriction on the number of councillors who can receive SRAs.
• There is no consistent picture across Scotland in relation to the levels of SRA paid, or the number of SRAs in each council.
• The current arrangements are not transparent or easily understood. Although councils are required to publish details of allowances paid to councillors, it is not clear to the public how it is decided which councillors get SRAs.

Recommendation 1: We recommend that basic allowances and special responsibility allowances should be abolished and replaced with a new salary structure.

Salary arrangements

3.5 To replace basic allowances and SRAs, salaries should be introduced. Salaries should be based on the role carried out and the responsibilities held by the councillor. To aid the readability of the report we will use the following terms:

• 'Basic councillor' means a councillor with no significant additional responsibilities in the council's policy development or decision making structures.
• 'Senior councillor' means a councillor with significant additional responsibilities, for example a Committee Chair, Cabinet Member, Provost, or leader of a significant opposition group.
• 'Leader' means the leader or convener of the council.

Research findings

3.6 To assist us in reaching a view on the levels at which salaries should be set, we considered the outcome of three pieces of research work. The Public Attitudes to Councillors' Remuneration survey gave us some information on how the public viewed the role of a councillor in comparison to a range of occupations. The Analysis of Scottish Councillors' Weight of Responsibilities and the Survey of Councillors' Workload provided a range of information, comments and opinions, which were helpful in allowing us to reach a view.

Basic councillors

3.7 The Analysis of Scottish Councillors' Weight of Responsibilities sought to establish whether there were variations in the weight of responsibilities held by basic councillors, across different sizes of council. The study found that the "key roles and responsibilities of councillors with no additional responsibilities is broadly comparable irrespective of size of authority". That view was also supported by councillors and officers with whom we spoke on council visits. We took account of these findings. New arrangements must be easily understood and we do not see any reason to continue with an arrangement that pays basic councillors different amounts in different parts of the country

Recommendation 2: We recommend that the salary for basic councillors should be the same in all councils.

Consideration of level of salary - guiding principles

3.8 To allow us to reach a recommendation on the level of salary that would be appropriate for basic councillors, we concentrated on five key elements:

• The weight of responsibilities held, and the responsibilities in comparison to other roles or occupations
• The time commitment required to carry out the role
• The need to make council membership a realistic option for many more people
• The public acceptability of our recommendations
• The cost of our recommendations compared to what councils currently spend on councillors' allowances

3.9 These key elements are now considered in turn.

Weight of responsibilities and comparisons with other roles

3.10 The findings from the Analysis of Scottish Councillors' Weight of Responsibilities suggested that the salary for basic councillors should be towards the top of the £15,000 to £20,000 range. The Public Attitudes to Councillors Remuneration survey showed that although just over 20% of respondents felt that a salary of £20,000 to £25,000 would be appropriate for councillors, most respondents favoured various figures below that range, some as low as £5,000 or under. None of the research work led us directly to a precise salary figure, but it did suggest that the £15,000 to £20,000 range was appropriate.

3.11 Importantly, the research did provide comprehensive role descriptions which helped us to consider the different weight of responsibilities held by councillors carrying out different roles, and the core competencies required to carry out these roles effectively. We discuss this later in this chapter.

3.12 The criteria set for the Committee required that the role weighting research should make comparisons with other professions or occupations that the person carrying out the evaluation considers may be comparable with the responsibilities of a member of a local authority.

3.13 The findings of the research work pointed to the potential value of a formal job evaluation exercise and there was some support for adopting this approach. The Committee considered using the job evaluation system developed for local government employees. It agreed however that this could not be used as a means of evaluating the role of a councillor, in comparison with council employees. Many of the factors used to score jobs, such as detailed job descriptions, supervisory responsibilities and supervision received, and level of skills required, could not be applied directly to the role of councillors.

3.14 Indeed almost all interviewees considered that there was little comparison between the roles and responsibilities of councillors, and those of other occupations or professions. Whilst there is doubtless some commonality in the roles, responsibilities, and competencies between councillors and other occupations, there are fundamental differences that negate a straight comparison for salary comparison purposes. For example, carrying out the basic councillor role requires no specialist experience or specific qualifications; there are no defined working hours; councillors are elected rather than employed; and they have no direct line-management responsibility for staff. The feasibility of developing a dedicated role evaluation scheme for councillors was therefore rejected on the basis that it could not be done in the timescale available and the costs involved would be substantial in relation to the benefits, if any, which would be gained.

3.15 Some councillors and a few officials interviewed equated the roles and responsibilities of councillors more closely with those of backbench MSPs. They argued that the roles and responsibilities are essentially political ones, that they are "elected on the same mandate, represent 'constituents' in the same way and perform similar political and community leadership roles". Our view is that the differences between the roles are more significant than the similarities. Although both are elected on the same day and both have similar community representative roles, we do not think there are any other factors which would justify making a comparison. An MSPs role is different to a councillor's in two important respects: an MSP is a legislator and has a national role. A councillor is responsible for services at a local level. Furthermore, MSPs salaries are set as a percentage of those for MPs. A further link in that chain would essentially mean that local councillors' salaries would be determined by a body in London which may have little detailed knowledge of the current and changing role of Scotland's councillors.

3.16 An alternative suggested by a number of those interviewed, was to compare the role of a councillor to that of members of Non-Departmental Public Bodies ( NDPBs). Again it is a comparison that is difficult to sustain. First, NDPBs vary greatly in terms of size and responsibilities, from the smallest advisory committee, to large organisations such as NHS Boards. Further, while large NDPBs such as NHS Boards may superficially be seen as a comparator, the arrangements that generally apply to them - for example, payment of daily fees or a salary based on a set time commitment of 'x' days per week - are not suitable for councillors. The tasks performed by members of NDPBs may be similar in some respects to those of councillors, but NDPB members are not directly accountable to the electorate, do not have the same community representation role, nor is their time commitment generally as onerous as that of a councillor. They are also appointed following application and interview.

3.17 We therefore concluded that there is no valid comparison between the role of a councillor and other roles or occupations, including members of NDPBs.

Time commitment

3.18 The time commitment given by councillors has frequently been raised in debates around how much councillors should be paid. The Survey of Scottish Councillors' Workload shows that basic councillors estimate that they spend 32 hours per week on council business. Although this is less than the number of hours that would typically apply to a full-time job, it still represents a significant commitment, which includes evening and weekend working.

3.19 We noted that the debate around the time commitment of councillors has been clouded by a confusion over the time that may be given by some councillors, and the time that may actually be required to carry out the role effectively. We understand the context, confirmed by the research, in which some councillors devote a generous amount of time to their role, where their personal circumstances allow them to do so. That commitment is laudable.

3.20 However, we are concerned that surveys of this nature generate a perception that the role is one for which working very long hours is an absolute requirement. This acts as a barrier to more people considering becoming a councillor. The role of a basic councillor should be compatible with holding other responsibilities, for example, employment, voluntary work, and caring responsibilities. Indeed on visits to councils we heard examples of councillors with significant responsibilities outwith the council performing their council duties competently and diligently. Unless it is generally accepted that the role of a councillor can be undertaken by people with other responsibilities, attempts to encourage more people to stand for election will continue to be challenging.

3.21 This view is supported by the Analysis of Scottish Councillors' Weight of Responsibilities. That study found a strong expression among council officers that the role of a basic councillor does not have to be, nor should be, a full-time commitment. Councillors were more divided although a majority still argued that it was not necessary or desirable to be full-time. It was generally accepted that a full-time culture could frustrate efforts to encourage a wider cross section of the community to consider council membership as a serious option open to them.

3.22 One of the criteria to which we must work states "in any particular local authority, a sizeable majority of the members represent the local authority such that the total time spent on their responsibilities as members is supplemental to the time spent on their other types of responsibilities, that are not connected with local authorities". In other words, for the majority of councillors, the role should not require a full- time commitment and the performance of councillors as advocates and representatives of their community would be improved by balancing this with an alternative role.

3.23 This criteria, the findings of the research work, and our own deliberations lead us to a clear conclusion. While the salary for councillors should reward adequately the role carried out, it should not be seen as a 'full-time' salary, the role should not be seen as one that requires a 'full-time' commitment, nor should it be seen as a straightforward substitute to an occupation elsewhere. Indeed, only 36.6% of councillors who responded to the workload survey classified their employment status as 'councillor'. It was also striking that almost 43% of councillors who responded were in employment, whether full-time, part-time or self-employed. The role of a councillor, especially those with no additional responsibilities, should therefore be capable of being adapted and tailored to fit around other commitments.

3.24 We noted also the Councillors' Remuneration Progress Group's view that "adding up the number of hours currently worked is too simplistic a measure when determining remuneration". We accept that view. The time commitment currently given should not be our only consideration in reaching a conclusion on the level of salary that would be appropriate, although the time commitment which the research suggests may be required has been taken into account.

Widening access to council membership

3.25 In considering the level of salary appropriate for basic councillors, we revisited the recommendations of the Widening Access to Council Membership Progress Group ( WAPG). The headline recommendation made in that Group's report asked us to note that a "decent wage, around the level of the Scottish average annual salary, is necessary in order to widen access".

3.26 Clearly, encouraging more people to consider council membership is a complex matter. The remuneration package that will be available will not be a panacea that will make councils more representative of the people they serve, nor will it automatically encourage more people to take the first steps towards elected office. Arguably, people should be attracted to the role first and foremost by a desire to serve their community. This public service ethos is the hallmark of a good councillor and we think it is important to retain that. Equally however, the remuneration package should not be a disincentive to council membership.

3.27 Therefore, the introduction of a new remuneration package centred on the establishment of a basic salary does have a bearing - alongside the time commitment required - on whether people will see council membership as a realistic option. The need to widen access to council membership has therefore been factored into our consideration of the level at which the salary for basic councillors should be set.

Public acceptability

3.28 In addition to the findings of the research work, the criteria given to the Committee requires us "to use reasonable endeavours to secure that its advice, so far as practicable, shall be acceptable to the local government electorate in Scotland, having regard to their responses to any consultation or publicity by the Committee of the proposals".

3.29 The Public Attitudes to Councillors' Remuneration survey showed that those interviewed had little understanding of the role of a councillor, how much they are currently paid, and how many hours they worked. So we are treating its findings with some caution. Nevertheless, when asked to compare a councillors' role to other occupations, the most common comparators for a basic councillor were a 'community worker', and a 'teacher'. This implied a very wide range of salary from less than £10,000 to more than £30,000.

3.30 'Public acceptability' is of course subjective, and we will not know whether the public will find a salary level acceptable until one is in place. However, we are conscious that a majority of those surveyed indicated that a salary below £20,000 would be appropriate.

Cost implications

3.31 Finally, we were required to consider the "effect of our advice, if implemented, upon the total cost incurred by local authorities in respect of payment of remuneration to councillors". This did not require us to create arrangements that cost the same as current arrangements, nor did it restrict us to considering only arrangements which cost a certain percentage more. However, we were conscious of the total cost of new arrangements compared to current expenditure, the average amount currently paid to councillors, and the wide range of additional allowances paid to councillors across Scotland. Full details are given in Chapter 7.

Level of salary for basic councillors

3.32 To allow us to reach a recommendation on the level of salary that would be appropriate for basic councillors, we distilled a wide range of information including:

• The findings of the survey of councillors' workload
• The findings of the analysis of councillors' weight of responsibilities
• The findings of the public opinion survey
• The Widening Access to Council Membership Progress Group Report
• The Councillors' Remuneration Progress Group Report
• The views expressed to the Committee at council visits and meetings
• The views expressed to the Committee by CoSLA, SOLACE and the National Association of Councillors
• Arrangements operating in other parts of the United Kingdom

3.33 Our consideration of this information and opinion did not lead us directly to a specific salary figure, or a comparison with other roles or occupations. Indeed, the information available pointed to a variety of different salary levels:

• £10,000 to £30,000 in the public opinion survey
• £12,000 in the Kerley report
• £15,000 to £20,000 in the analysis of councillors' weight of responsibilities
• £20,000 in the Councillors Remuneration Progress Group report
• The average Scottish annual salary in the Widening Access to Council Membership Progress Group Report

3.34 We were also mindful that the current average 'salary' for councillors (comprising the basic allowance, any SRA, and any civic allowance) is £14,171.

3.35 Nevertheless, these studies did allow us to consider factors which are important and directly relevant to determining a salary figure.

3.36 Although a fairly wide range of figures were suggested we considered it important that the salary level should strike the right balance between widening access and being acceptable to the public, while still being fair to councillors. The model of setting the salary based on the average Scottish annual salary, as recommended by WAPG, has found favour with a number of councils in their responses to the WAPG report. Indeed, the research shows that some councillors went so far as to say that they would have difficulty justifying to their constituents a salary higher than the average salary.

3.37 We were also conscious of the point made in research findings that the salary should not be set at a level which attracts people to council membership primarily for financial gain. The desire to serve the community should continue to be the main reason for wishing to become a councillor. As one councillor put it "being a councillor is not a job or a career, it is a political vocation".

3.38 In light of these views, we decided that the median Scottish salary should be our first building block in devising new salary arrangements.

3.39 The latest available median full-time annual Scottish salary figure is £20,603. (Annual Survey of Hours and Earnings, 2004.)

3.40 Although basic councillors estimate they work around 32 hours per week we note that there may be scope for developing more efficient ways of working. Overall, we consider that this time commitment, cited by councillors, is based on the number of hours that may currently be given, rather than a strict assessment of the number of hours that are actually required to carry out the role effectively. We acknowledge that councillors with different personal circumstances spend more time carrying out their council business. However, we should have regard to the minimum times that may be needed to carry out the role of councillor effectively, rather than the amount of time that can be given by councillors with no major responsibilities outwith the council.

3.41 It is also notable that councillors who are in employment estimate that they spend less time - around 28 hours - on their councillor role. We have no doubt that they can still be very effective councillors even though their time commitment may be around 75% of the average working week (according to the Office of National Statistics, full-time workers in the UK are working just under 37.5 hours per week on average).

3.42 As noted earlier, we are conscious of the need to widen access to council membership. If we were to recommend that councillors should be paid the median Scottish full-time salary, that would imply that the role is one that requires nothing less than a full-time commitment. That would have a negative impact on efforts aimed at widening access and would also not reflect the requirements of the role. We therefore decided that the salary for basic councillors should not be seen as a full-time salary. This is in line with expectations and practice in other parts of the UK.

3.43 Further, we considered the role descriptions and competency framework for basic councillors produced as part of our research work. Our assessment of the duties expected of a basic councillor, including the complexity of the role, the level of responsibility held, and the competencies required were also factored into our consideration of the level at which their salary should be set.

3.44 Since we did not rely upon a formal job evaluation which may have led us to a precise salary figure, we consider that the level of salary:

• must be fair to councillors, and meet the criteria to which the Committee must work;
• should reflect accurately the roles and responsibilities outlined in the role description produced as part of the research work;
• should encourage efforts to widen access by making clear that the role of a councillor should be supplemental to other roles and responsibilities;
• should acknowledge the time commitment necessarily required to carry out the role effectively.

3.45 Therefore, the salary should be set at a substantial percentage of the Scottish median annual salary. Taking into account the various factors detailed above we consider that it is fair and reasonable that basic councillors should be paid a salary equivalent to 75% of the Scottish median salary. Using the latest figures available, this would amount to 75% of £20,603 which equals £15,452.

Recommendation 3: We recommend that the annual salary for basic councillors should be £15,452.

3.46 We recognise that when the new arrangements are brought into effect, the median Scottish salary may have changed. We discuss this in more detail in Chapter 8 which deals with reviewing and uprating arrangements.

Level of salary for council leaders and senior councillors

3.47 Although we have recommended that Special Responsibility Allowances should be abolished, there is still a need to remunerate adequately those councillors who hold senior positions in the council and whose roles carry heavy or particularly challenging responsibilities.

3.48 Typically, these posts might include the Leader or Convener of the Council, Provost, Cabinet Members, or Conveners or Chairs of major policy or regulatory Committees, and the Leader of a significant opposition group. Depending upon a council's policy development and decision making processes, there may be other posts which have a higher level of responsibility attached.

3.49 It is clear that these senior positions place a greater burden on the councillors who hold them. The outcome of our research work shows clearly that the time commitment given, and the weight of responsibilities held, by councillors in promoted posts is significantly higher than that for basic councillors.

3.50 As such, these roles may be less compatible, or in the case of Leaders of larger councils, incompatible, with having other significant responsibilities outside the council. We therefore consider that it is appropriate to introduce arrangements which would pay these councillors higher salaries, and the levels of these salaries should take into account the scale of the local authority they are leading.

3.51 The principles which we consider important in determining the arrangements for paying senior councillors are:

• The number of councillors receiving higher salaries should be a minority. Arrangements should therefore explicitly prevent paying higher salaries to a majority of councillors, or to all councillors
• Councils should have reasonable flexibility, within a sensible framework, to determine which posts should attract enhanced salaries
• Councils should have reasonable flexibility, within a sensible framework, to determine the salary level that should apply to these posts
• The Leader or Convener of the Council should be paid more than any other councillor to reflect the extent of their additional responsibility

3.52 Our starting point was to examine the role of council leaders. The evidence suggested the role of a Leader is similar regardless of the size of council, but the weight of responsibilities, including financial responsibilities, differs. The Analysis of Councillors' Weight of Responsibilities noted that "there is a clear differential in weight of responsibilities between council leaders and councillors with significant added responsibilities according to the size and scale of the authority." The majority of interviewees maintained that whilst fixed elements must be taken into account - the legislative and other frameworks are the same regardless of the size of authority - the scale of operation of larger authorities, particularly the city authorities, has also to be considered when determining levels of enhanced salaries for council leaders and senior councillors.

3.53 We considered a number of options for a 'sliding scale' of salaries for leaders from the smallest councils to the largest to ensure some degree of consistency between weight of responsibilities and salary level. Options we examined included different salary levels for all 32 leaders, based on the population and financial turnover of their council. We considered various other banding options based on the same information. The research findings highlighted the possibility of using the banding system currently used for Chief Executives' pay scales. We also considered the 'points structure' and bandings detailed in the CRPG report.

3.54 Although our proposals do not replicate either the Chief Executives' bandings, or the CRPG's bandings, we have retained the principles of these models and recast them in a pragmatic way. To ensure new arrangements are simple and easily understood, we considered creating fewer bandings, based on information which is already in use. A straightforward, if unsophisticated, link would be to use the population of the council area as a guide but our criteria prevents this. An alternative and more precise guide is Estimated Service Expenditure. This is the total amount that the government calculates each individual local authority will need to spend on services, and is comprised of both Grant Aided Expenditure ( GAE) and Special Islands Needs Allowance ( SINA). This approach allowed us to create 4 distinct bandings of councils which might generally be regarded as small councils, medium-sized councils, large councils, and the two major city councils. This approach is similar to that adopted in Wales.

3.55 The bandings of councils we are proposing for the purpose of determining salaries for leaders and senior councillors are shown in table 1.

Table 1 - Bandings of councils based on Estimated Service Expenditure (further details are given in Annex B)

Leaders' salaries

3.56 For the leaders of councils we consider that the salary level should:

• Reflect adequately the level of responsibility held
• Recognise that leaders' roles are similar in scope across all councils, but the weight of responsibilities differs
• Recognise that it is likely to be difficult for the leader to have employment outwith the council
• Recognise that the leader holds the most senior position in a council hierarchy
• Reflect the possibility of introducing a straightforward link to the salary for basic councillors

3.57 Again, the research work and other views did not lead us directly to an exact figure but it did suggest a broad range to over £50,000 for the leaders of the largest councils. Most interviewees agreed that council leaders have more demanding and responsible positions in the larger authorities, especially in the cities, but councillors in smaller councils made strong arguments against such differentials being accorded greater weight. A consistent view, which we accept, was that whilst the legislative and other frameworks are the same irrespective of the size of the authority, the scale of operation of larger authorities and the consequent level of responsibilities have to be taken into account when determining the levels of remuneration that should be paid.

3.58 As we are seeking to maintain the principle that the new arrangements for councillors' remuneration should be simple, there should be a correlation between the salary for leaders and the salary for basic councillors, and it should not be set by individual local authorities. This is the approach taken in a number of councils in England. Furthermore, we wanted to avoid creating an arrangement, similar to the current SRA arrangements, where leaders (and other senior councillors) in similar sized councils are paid a very wide range of different amounts.

3.59 In respect of time-commitment, the research findings show that council leaders spend significantly more time carrying out their role compared to basic councillors. Council leaders who responded to the survey estimate that they spend 54 hours per week on council business, of which 40 hours is during weekdays. Interviews showed that the time commitment can often be more than that. We consider that this level of commitment makes it unlikely that a council leader's role is compatible with holding other significant responsibilities, particularly paid employment.

3.60 While the research studies found that it was not possible to quantify the relative weight or significance of decisions taken by councillors of varying grades, the role profiles and competencies framework identify the key areas where leading councillors have more responsibility. They show that council leaders are expected to play more demanding roles in relation to providing leadership, vision and political direction, and that consequently they shoulder greater responsibility and associated risk. The role descriptions at Annex A show this clearly.

3.61 In view of the heavy responsibilities carried, and the required time commitment of a council leader, we consider it reasonable that leaders' salaries be linked to 100% of the Scottish median salary, rather than the lower percentage which we have applied to basic councillors.

3.62 The difference in the weight of responsibilities held by a basic councillor compared to a council leader suggests that there should be a significant differential between the respective salary levels for these posts. The aggregation of competencies shown in the Analysis of Councillors' Weight of Responsibilities indicates that there are distinct differences in the level of competency expected of councillors in different positions in relation to personal skills, policy making skills, and knowledge.
The scoring exercise in this research showed that if a basic councillor was scored at 100%, the competency score for senior councillors would be 137.5% and leaders' score would be 175%.

3.63 We have also considered arrangements that are in place elsewhere and consider it reasonable that a leader's salary should be at least 50% more than that for a basic councillor. We have taken that into account in determining a salary for leaders of councils in band A. The leaders of councils in bands B, C, and D should then receive higher salaries, based on increasing multiples of the Scottish median salary, and having regard to the scale of responsibility held. In addition, this indicates salary levels that are within the competency parameters suggested by the research work.

3.64 This approach is fair and reasonable. It reduces the number of salary levels to 4, rather than the wider range that is currently created by the SRA system. It is a simpler approach which better allows the public to understand which councillor is in the pre-eminent position on the council. Above all, it creates salary levels that recognise the scope and scale of the council leader's role and the responsibility held.

Recommendation 4: We recommend that the following salary levels should be introduced for council leaders (or council conveners where that title is used instead). Salary figures are inclusive of the 'basic councillor' element and are therefore the total amount that can be paid to holders of these posts.

Senior councillors

Number of councillors that may receive an enhanced salary

3.65 In devising arrangements for senior councillors, below the level of council leader, we considered that it was important to find a balance between allowing councils flexibility and maintaining a reasonably consistent approach across the country, while meeting the criteria set for us.

3.66 Although the new arrangements will not come into effect until the next council elections, we considered that the current decision-making structures would nonetheless be a reasonable guide to the number of councillors required to fill key positions in the council. We therefore examined the structures, and the current SRA schemes, for a number of councils of different sizes and structures.

3.67 This allowed us to determine the number of councillors that, in our view, are needed to carry out these roles in councils in each of the 4 bands. The number of senior councillors we are setting will allow these councils to function effectively, regardless of what structure they may choose to put in place in the future. They are also generally consistent with the findings of the research studies which suggested that the number of councillors receiving enhanced salaries should range from 33% of councillors to just 16%. We have taken this research into account but have not stuck rigidly to these figures. Doing so would make our proposals unduly challenging in a small number of councils. For example, limiting the number of senior councillors to 33% would mean that smaller councils would need to function with only six senior councillors including the leader. Our recommendations for some councils therefore show 50% of councillors in senior positions and we are fully satisfied that this is necessary to allow these councils to function effectively. Limiting the number of councillors in senior positions in this way also allows us to meet criterion 9 which asks us to "proceed on the assumption that in any particular local authority, a sizeable majority of the members represent the local authority such that the total time spent on their responsibilities as members is supplemental to the time spent on their other types of responsibilities, that are not connected with local authorities".

3.68 We therefore concluded that councils should be able to support the following number of senior positions, including the council leader:

• Councils in Band A - 10 councillors
• Councils in Band B - 15 councillors
• Councils in Band C - 20 councillors
• Councils in Band D - 25 councillors

3.69 Further, we do not consider it reasonable that more than 50 % of councillors in any council should hold a position with significant additional responsibilities. We have therefore adjusted the maximum number of senior councillors in a small number of councils in bands A and B to avoid the situation where the set number of 10 or 15 councillors would be more than 50% of the total number of councillors.

3.70 Councils will note that these arrangements would not allow them to continue to attach enhanced salaries to all those posts which currently merit an SRA. Research findings showed that there was a general view that if the level of basic salary for councillors was higher than the current basic allowance, there would be no need to pay enhanced salaries to those councillors carrying out other duties, e.g. deputy chairs of committees, chairs of sub-committees or area forums. These tasks would be considered part and parcel of the basic councillor role, entitling them to the basic councillor salary.

3.71 We therefore consider that it is reasonable that an enhanced salary should only be paid to councillors with significant additional responsibilities. These might include Cabinet members, chairs or conveners of major council committees, the provost, and the leader of any significant opposition party. Of course, councils should determine which posts should receive an enhanced salary. We acknowledge that some councils may feel that specifying a maximum number of councillors who can receive an enhanced salary limits their flexibility. The arrangements we are proposing provide sufficient flexibility within a sensible framework. The research shows that councillors and council officers generally agreed that a higher basic salary should reduce the need for as many enhanced salaries to be paid. Failing to limit the number of councillors who can receive an enhanced salary would therefore leave it open for any council to pay enhanced salaries to most or all councillors, as many do at present. That is a fundamental problem with the current SRA arrangements and we are therefore content to make a recommendation that would explicitly prevent that.

Salaries for senior councillors

3.72 To allow councils flexibility to determine the salary level that should be attached to each post, we are proposing a total amount that councils can use, rather than determining exact salaries as we have done for basic councillors and council leaders.

3.73 We consider that there should be a reasonable gap between the leader's salary and that of any other senior councillor, for example, the provost, a cabinet member, or the convener of a major committee. We therefore recommend that no other councillor's salary can be within 25% of the salary of the leader.

3.74 Using this 25% gap, we arrive at the following salary ranges for paying councillors with significant additional responsibilities:

Band A councils - £15,452 to £23,179

Band B councils - £15,452 to £27,041

Band C councils - £15,452 to £30,905

Band D councils - £15,452 to £38,631

3.75 The allocation from which councils may remunerate senior councillors (other than the leader) is calculated by taking the mid-point between these upper and lower salary levels, and multiplying that by the maximum permitted number of senior councillors (not including the leader whose salary is pre-determined).

3.76 For example, Orkney Islands Council's maximum salary budget for senior councillors can be calculated as follows:

3.77 The council would be permitted to spend a maximum of £173,844 on salaries for nine senior councillors. The council would have complete flexibility to determine which salary levels would be appropriate to recognise adequately the roles which need to be carried out, and the weight of responsibility attached. They could divide the total equally and pay £19,316 to each of the nine councillors. More likely they may wish to pay higher salaries to some (up to the maximum of £23,179) and lower salaries to others, dependent upon responsibilities held, provided they did not exceed the total allocation. It should be noted that unlike the current SRA arrangements, senior councillors' full salaries will need to be met from this total sum of money, rather than only the 'enhanced' element..

Table 2 - Calculation of fund for paying senior councillors

* except Clackmannanshire and Midlothian (see table 3)
** except West Dunbartonshire, East Dunbartonshire, Angus, and Dundee City (see table 3)

Recommendation 5: We recommend that the number of senior councillors in each council should be as shown in table 3, and the total salary for these councillors should be met entirely from the allocation shown for that council.

Table 3 - Proposed remuneration levels for basic councillors, senior councillors, and council leaders

Joint Boards

3.78 Many councillors are members of joint boards, such as those responsible for police or fire services. These boards are established by order under section 62B of the Local Government (Scotland) Act 1973. The convener of a joint board may be appointed on a rotating basis from among the board's constituent councils, or may be appointed from one particular council as part of an ongoing understanding between the councils involved. Joint boards stand alone from local authorities and as such we consider that the remuneration arrangements that apply to their senior positions should remain separate from those which relate to the councils on which these individuals serve.

3.79 Like the arrangements we are proposing for senior councillors, the joint board should determine the salary that should be paid to these senior positions. We are however proposing that there should be a limit on the level of salary set to ensure a reasonable degree of consistency between the salary paid to senior positions in joint boards, and those paid to senior councillors on councils.

3.80 We are therefore proposing that the upper senior salary limits (as shown in table 2) should apply to senior positions on joint boards. The upper limit which should be applied will be that which relates to the highest banded council represented on the joint board. For example, in the Strathclyde Police Joint Board, the Board can decide the level of salary that should be paid to its convener, and vice-conveners, up to the maximum senior salary for the highest banded council represented on the Board (in this case, Glasgow City Council in Band D), rather than the maximum senior salary that applies to these individuals' own councils. This will allow the board flexibility to remunerate adequately councillors holding these posts, regardless of the banding applied to their own authority.

3.81 We note that Dumfries and Galloway Council and Fife Council are directly responsible for the administration of functions that are the responsibility of joint boards in the rest of the country. To avoid creating an inequality for these councils, we are also content that senior positions, such as the convener and vice-convener of the council committees that are responsible for police and fire services should be separate from the arrangements we have recommended for other senior councillors. However, the maximum senior salary for these councils would apply.

3.82 The cost of salaries for senior councillors on a joint board should be met in part by the joint board, and in part by the individuals own authority (as applies to the current basic allowances and SRAs). For example, the current Convener of Strathclyde Fire Joint Board would have £15,452 of his salary paid by South Lanarkshire Council, and anything in excess of that, paid by the joint board.

Recommendation 6: Joint boards should determine the salary to be paid to senior positions on their board. That salary may not exceed the upper senior salary limits (as shown in table 2) that relate to the highest banded council represented on the joint board.

Recommendation 7: For Fife Council and Dumfries and Galloway Council senior councillors responsible for police and fire services should be remunerated separately from the arrangements we have recommended for other senior councillors. However, the maximum senior salary for these councils would apply.

Salary conditions

3.83 It is reasonable that the public should be clearer about what they can expect from their councillor. This is particularly important to assist the transition from a complex system of allowances to new salary arrangements which will underpin the principles of openness, transparency, and accountability. A new remuneration package will lead to increased expectations on the level of service the public should be entitled to receive from their councillors.

3.84 Although councillors argue that their performance is assessed at the ballot box, it seems reasonable to attach some 'minimum requirements' and conditions to the salary package being offered, not least to emphasise the importance of councillors being trained adequately for the role they are elected to carry out. In addition, the establishment of a compulsory role description and mandatory training may go some way to reassuring people who have considered standing for election but have been unclear about the support they will receive if elected.

3.85 We are therefore proposing a series of requirements that should be put in place alongside the new remuneration arrangements. In addition, we would expect individual councils to draw up appropriate implementation and monitoring arrangements to ensure best value within the system.

Role descriptions

3.86 We agree with the long-standing suggestion that all councillors should have a role description. Indeed some councils have already developed role descriptions for councillors and have publicised them. Councils should have flexibility to devise role descriptions that are fit for purpose in their area, but they should not be optional for any councillor. The role descriptions at Annex A were developed as part of the research work. Councils may wish to consider these as a basis for developing role descriptions for all their current councillors and ensure that they are developed for all councillors elected at the next elections, if not before then.

Training

3.87 The public are entitled to have high expectations of their councillors and feel confident that they are carrying out their role effectively and efficiently. It is important that councillors actively engage with training and development opportunities on an ongoing basis that will help them fulfil their role in a more successful and productive way, and enable them to progress their council career, should they so choose. We therefore recommend that all councillors - including long-serving councillors being re-elected - should participate in a training needs assessment, and agree a personal development plan as soon as possible after election. That plan should be based around the core competencies identified by the research work as being important to the effectiveness of councillors. Again, we do not consider that this should be optional. Personal development will be particularly important in view of the fundamental changes that will be taking place in 2007, and the effect the new electoral arrangements will have on how councillors work.

The need to work differently

3.88 We noted that many councillors believe their workload will increase when they are one of three or four councillors representing a multi-member ward. Councillors must respond to this challenge and develop new ways of working which minimise duplication and less productive effort.

3.89 Councillors will need to first respect the decisions of the electorate and work closely with other councillors in their multi-member ward. We would be concerned if duplication of effort - for example, four councillors dealing with the same constituent's case - contributed to a councillor's workload such that the number of hours required to carry out the role increased substantially. Councillors should therefore establish, with other councillors representing the ward, the most efficient method of representation and sharing of workload within the ward, and adhere to any protocol that may be developed in respect of working in multi-member wards.

3.90 The research work also suggested to us that there is scope for reducing significantly the amount of time councillors need to spend dealing with casework that may be more efficiently handled directly by the relevant council officers. It is important in trying to widen access to move away from the perception of some councillors that being on call round the clock is a requirement of the role. We would encourage councillors to make better use of council facilities and processes to help them carry out their role while holding other responsibilities outwith the council.

Councillors who have been suspended

3.91 The Committee is aware that the Standards Commission currently has powers whereby they can direct that the salary of a member of a public body can be reduced or not paid in certain circumstances. These powers do not extend to councillors. We are therefore recommending that the Standards Commission's powers in relation to NDPB members should also apply to local authority councillors.

Recommendation 8: We recommend that all councillors should have a role description, participate in a training needs assessment, and have a personal development plan in place once they are in receipt of the new remuneration package, and that they should strive to find ways of working more efficiently to avoid their role expanding unnecessarily.

Recommendation 9: The Standards Commission should be able to direct that a councillor's salary be reduced or not paid if, after a hearing, that councillor has been suspended from carrying out any part of their role.

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