Power and pay

THE latest assault by Eric Pickles on town hall pay surprised few; he has spent much of his time in office in conflict with local government leaders. Having already called on chief executives to take a five per cent pay cut and unveiled plans for top pay levels to be published, he wants councillors to be required to approve any salary of more than £100,000.

Many households will applaud this crusade on “fat cat” pay after the salary for top local government managers reached £626.9m two years ago. At a time when funding for councils is being cut and household budgets squeezed, it is not unreasonable to ask senior managers to show leadership. Even though a pay cut will not fill a budget “black hole”, it is a symbolic gesture.

However, wave after wave of attacks on councils risk creating a permanent sense of conflict between Whitehall and town halls that will breed resentment rather than inspire the radical thinking required to save money and protect threatened services like libraries and care homes.

The stand-off also demonstrates the contradictions and tensions in the Government’s “localism” agenda. If Ministers believe in decisions being made at a local level rather than Whitehall, is it right for Ministers to effectively tell councils what to cut – or how much to pay key staff?

It is easy to see the appeal for the Government in repeatedly exposing the generous pay packets of council executives, not least because it allows Ministers to pin the blame for service cuts on “wasteful” local authorities rather than Whitehall-driven funding cuts.

However, Mr Pickles should be wary of a drawn-out conflict with local government. Being at war with town halls is counter-productive – a far more constructive relationship is vital if cherished “front line” services are to be saved.