Ernie Clark. Hilperton Division, Wiltshire Council.

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Thursday November 22, 2012

Action to limit council 'golden goodbyes'.

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Eric Pickles acts.

The legal minefield that can pressure councils into giving large pay offs to chief executives they want to dismiss is to be ended.

Eric Pickles said councillors must be able to get rid of chief executives without parachute payoffs. Slow and costly bureaucracy that requires councils to appoint an independent person, usually a Queen’s Counsel, to review dismissal and disciplinary cases for chief executives is to be changed. The Isles of Scilly Council has recently suspended its chief executive pending one of these investigations. Councils seeking to dismiss a chief executive for misconduct or poor performance often pay out inflated lump sums to avoid the cost of taking this bureaucratic route. Eric Pickles intends to remove this expensive roadblock, which does not exist in other parts of government or the private sector.

Local government estimates the review process can cost between £100,000 and £250,000 in legal fees not counting independent investigation costs and salary for the suspended officer. One case cost £420,000 and took 16 months to adjudicate. Ministers believe decisions by full council ensure proper democratic accountability, without the need for a centrally dictated process.