Parliamentary.ai

Overview

This bill amends the Localism Act 2011 to increase transparency and accountability regarding high salaries paid to local government employees in England. It requires local authorities to formally approve any salary over £100,000 before advertising or appointing to a role.

Description

Key Changes to the Localism Act 2011:

The bill inserts a new section (39A) into the Localism Act 2011. This section mandates that English local authorities must obtain a formal resolution to approve any salary of £100,000 or more before advertising a position or appointing someone to a role at that salary. This applies to full-time, part-time, and less-than-a-year appointments with salaries adjusted proportionally. A single resolution can cover both advertising and appointment. Existing pay policy statements are not sufficient for this requirement. The Secretary of State can adjust the £100,000 threshold via regulations. The bill also requires that the number of appointments over this threshold be reported in annual pay policy statements. Finally, the bill makes related amendments to other sections of the Localism Act 2011 and the Local Government Act 1972 to ensure consistency and clarity.

Government Spending

The bill is not expected to directly increase or decrease government spending. Its impact is primarily focused on increased transparency and accountability within local government budgeting and employment practices.

Groups Affected

• Local Authorities in England: These authorities will be directly affected by the requirement for formal approval of high salaries. Increased administrative burden is expected.
• Local Government Employees: Those earning £100,000 or more annually will have their appointments subject to this new approval process.
• The Secretary of State: This individual will have the power to adjust the £100,000 salary threshold via regulations.
• The Public: Increased transparency around high salaries in local government is expected to enhance public accountability.