Agenda item

Considered a report of the Assistant Chief Executive Legal and Democratic Services which presented the latest report of the Independent Remuneration Panel for Member Allowances for consideration.

The Assistant Chief Executive Legal and Democratic Services, Barry Khan introduced the report of the IRP which in summary for 2026-27 was recommending an increase of 3.6% for councillors’ Basic Allowance and all Special Responsibility Allowances. Members of the Executive then discussed the report and expressed concern that in previous years this independent report had been exploited by certain councillors for political gain. Rather than ask the IRP to undertake an annual review of the Members’ Allowances Scheme, they suggested instead that the level of allowances be index linked in successive years to either the CPI, RPI, or to officer pay increases. Mr Khan explained that the IRP had previously rejected this approach for the newly established local authority because of the lack of evidence at that time about the new and emerging roles and responsibilities and what level of Special Responsibility Allowances they merited; however, this was a recommendation which the Executive could make to the IRP.

Resolved (unanimously) that the Executive:

       i.         support the proposals of the Independent Remuneration Panel for Member Allowances regarding the recommended Basic Allowance and Special Responsibility Allowances for 2026-27 for recommendation to the meeting of Council on 12 November 2025, namely:

·       The Basic Allowance paid to each councillor should increase by 3.6% (June 2025 CPI) from the existing £17,340 to £17,964 for 2026/27.

·       The Special Responsibility Allowances paid to those councillors who take on additional duties and responsibilities should increase by 3.6% (June 2025 CPI) for 2026/27.

·       The SRA paid to the Chair and members of the Licensing Sub-Committees should be amended so that the maximum amount payable for meeting attendance is increased from £750 to £1000 per person per annum.

·       For the sake of clarity, the eligibility threshold for payments to leaders and secretaries of the third largest political group should be increased from 7 to 9 members (in line with the 10% threshold).

·       The mileage rates paid to councillors should continue to be aligned with the rates paid to officers.

·       The subsistence rates paid to councillors should be amended so that they are aligned with those paid to officers.

     ii.         Recommend that for 2027/28 the IRP consider a Members’ Allowances Scheme which can be index linked for successive years instead of subject to annual review

Reasons for recommendations

a)         Councillors are not remunerated as employees - they are elected to fulfil important roles on behalf of the public. Nevertheless, the proposed Basic Allowance reflects the considerable time commitment required for the proper and conscientious fulfilment of duties.

b)         The reconfiguration of local government in North Yorkshire and the effect that the overall reduction in Councillors, from 319 to 90, has had on the workload of those elected to the new North Yorkshire Council.

c)         The need to attract and retain high-quality candidates from a variety of backgrounds - the Panel considered that the Basic Allowance should not be a financial disincentive to those who might otherwise wish to serve as an elected Member.

d)         The general economic climate, including inflation rates.

e)         The level of the Basic Allowance paid by comparable local authorities.

f)          Budgetary constraints on North Yorkshire Council.