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Monday, 27 February 2023

Councillors Dish Out Money To Highly Paid Officers and Decide the Budget in Secret - And Now Southampton City Council Is Near Bankruptcy

 

Former Councillor Andrew Pope
Speaking on BBC South Today

by Andrew D Pope*, 27th February 2023

Last week, at the February 2023 Budget Full Council of councillors, Southampton residents were horrified to hear the dire warnings of the state of the finances of Southampton City Council. This is public money, after all.

As reported by Southampton Independents, the Budget Full Council heard that councillors had been spending public money "unsustainably", leaving the Council in a "precarious financial position". The Council is near bankruptcy because it could soon be having to issue a Section 114 notice. Put simply, Labour has been spending too much money.

The warnings came from the Chief Financial Officer John Harrison, who we exclusively reported has now left. It appears from Mr Harrison's LinkedIn posts available to the public that his departure was planned months ago with the knowledge of Council officers - and presumably with the knowledge of the Leader of the Council, Councillor Satvir Kaur. As far as we are aware, no other local media outlet has reported his departure, and the Council itself was silent in its press release on the Budget. Such silence is worrying, given the parlous state of the City.

So where did the money go? Southampton Independents has reported on the profligate spending of Labour over the ten years it has spent and mis-spent millions if not billions of public monies at the Council.

Like ten of the least eleven years, Labour has been in control of the Council money and the Council Budget. This is not public money. This is not the Labour Party's money. It belongs to the people of Southampton. The Budget Full Council is decided in public, but last week there were items on the agenda that were deemed to have to be discussed without the press and public being able to see it.

Southampton Labour Allows More High Pay for Council Officers

In April 2022, the Taxpayers Alliance compiled a Council "rich list" of high pay at councils in England.

Southampton City Council appeared on that list. According to the information, the Labour-run Authority had doubled the number employees paid a six-figure sum - £100,000 or more.

It was reported that:

"During the 2020 and 2021 financial year, 12 staff members took home a six-figure salary – up from nine the previous year."

Whatever your views about the pay of Council officers being paid over £100,000, it is councillors that have allowed it. But it is only a special select group of councillors - most are not involved.

Millions Of Public Money Dished Out In Secret By A Few Councillors

But it is not just the Budget that has elements decided in secret. The decisions over employment of senior officers and their pay is also done behind closed doors. 

It is councillors who decide the salary of senior Council employees and who choose chief officers. But it is only a select group of councillors that do so. The vast majority of councillors are not involved in the committee that decides. It is called the Chief Officer Employment Panel

This Panel is normally just a handful of people, even as low as three councillors and usually the Leader of the Council, Leader of the Opposition Group and possibly one or two others. The meetings are minuted but the vast majority of the detail is hidden from public view behind agenda items that involve exclusion of the press and public. When you add up all these officers on more than £100,000 each the total becomes millions of pounds.

Making Decisions in Secret But You Voted Them In To Act For You

It is that small group of councillors that the people of Southampton should be asking questions of, because they are ones responsible for the appointment of these officers and their pay. And the dire state of the public finances is mostly down to the Labour Party that has been in control of the Budget for ten of the eleven years since 2012. Officers are supposed to advise councillors, and councillors are supposed to provide strategic oversight and direction to officers.

Neverthess, the total of senior officer pay is a small amount compared with the overall budget of the Council. However, the parlous state of the Council and its finances are decided by councillors, in co-ordination with officers who are supposed to provide wise advice to councillors. At the 2023 Budget, a long paper was presented to councillors to remind them of their responsibilities. It remains to be seen quite why they needed reminding. Surely councillors are already acting responsibly. Or are they?

Since the Taxpayers Alliance research, Labour has restructured the senior officers. The Chief Executive was changed. And now the Chief Financial Officer has left. Such turnover does not breed confidence in the leadership by Labour and in particular by Satvir Kaur, who is also Labour's Parliamentary Candidate for Southampton Test, with incumbent MP Alan Whitehead "retiring".

The People Voted Them In And Can Vote Them Out

There will be all-out elections in May 2023. The people can choose who represents them, because all 51 council seats will be up for election due to boundary changes. Whether the people will be able or willing to boot out those responsible for the current financial disaster, remains to be seen.

* Andrew Pope was a Southampton City Councillor between 2011-2019, being affiliated to Labour between 2011 to 2015 and Independent 2015 to 2019. He holds a Masters degree in Global Politics from Southampton University and is in training with the National College for the Training of Journalists.