Council Executives Earning More Than the Prime Minister Amid Financial Strain
In a revealing report by The i Paper, it has come to light that 44 council executives are receiving salaries exceeding that of the Prime Minister, even as many of these local authorities are grappling with severe financial challenges. This situation is particularly troubling for councils that are raising council tax beyond the maximum allowable rate.
Despite their financial difficulties, which have necessitated substantial government bailouts and “exceptional financial support,” many councils have opted to increase the salaries of their top officials. Notable examples include Birmingham, Somerset, and several London boroughs such as Lambeth, Haringey, and Enfield.
Last month, 30 English councils received authorization from the government to collectively borrow £1.5 billion, aimed at addressing significant budget deficits attributed to chronic underfunding and a surge in demand for social care and other essential services. Additionally, six councils were permitted to raise council tax beyond the national cap of 5 percent.
Shadow Communities Secretary Kevin Hollinrake expressed that residents are likely to feel “dismayed” by the exorbitant salaries of council executives when the councils themselves are under immense financial pressure. Former Business Secretary Sir Jacob Rees-Mogg described these high salaries as “ridiculous.”
Record Salaries Amid Crisis
Birmingham City Council’s managing director, Joanne Roney, holds the highest salary on record at £295,000, which is a 13 percent increase from her predecessor’s pay of £260,389. This represents the most significant raise among the 44 individuals earning more than the Prime Minister’s annual salary of £166,786, spread across 23 councils. Birmingham, which declared itself effectively bankrupt in 2023, has been allowed to increase council tax by 7.5 percent this April, following a 10 percent hike in the previous year.
Somerset Council, set to raise council tax by 7.5 percent in April, reported that an unnamed employee earned between £275,000 and £280,000 in 2023-24, while two others received between £245,000 and £250,000. Chief Executive Duncan Sharkey’s salary is lower, at £202,950, despite the council spending significantly more on high salaries compared to the previous year.
Lambeth Council allocated £256,346 and £253,770 to its “One Lambeth” transformation director and interim corporate director of finance and governance, respectively, in 2023-24, inclusive of agency fees. This council, which received a £40 million financial support package, has the highest number of officials—eight—earning more than the Prime Minister.
In Slough, the interim chief executive Will Tuckley is being paid £1,100 a day for a four-day workweek, which translates to an annual salary of £228,800 if employed year-round. The former chief executive was compensated £174,307 in 2022-23. Annabel Scholes, appointed last year as interim chief finance officer, earns £1,375 a day including agency fees, equating to £357,500 if she works five days a week for a year.
Haringey, Enfield, and Newham, all London councils, also reported some of the highest salaries for their executives. Haringey, which received £37 million in government support, pays its chief executive, Andy Donald, £225,870, while its director of finance earns £186,063. Enfield’s previous chief executive, Ian Davis, was paid £221,604 before resigning to take a similar role at Lambeth Council. Newham’s chief executive, Abi Gbago, has a salary ranging between £215,394 and £225,390.
Concerns Over Financial Management
Responding to the findings, Shadow Communities Secretary Hollinrake stated, “Residents will be left dismayed by Labour councils raising the salaries of town hall bosses while enforcing significant tax hikes on taxpayers in areas such as Newham and Birmingham.” He criticized Liberal Democrat councils for following suit in Somerset.
A government spokesperson noted that while councils are responsible for their finances, they must utilize taxpayer money judiciously and consider the ramifications of their financial decisions. Rees-Mogg added that it is “absurd” for poorly managed councils to impose hefty taxes while rewarding themselves with inflated salaries.
Darwin Friend, head of research at the TaxPayers’ Alliance, remarked that taxpayers would be outraged to see council leaders benefiting from large salaries while residents face tax increases. He emphasized that if councils can afford such generous wages, they should not be demanding more from struggling taxpayers.
Council Justifications for High Salaries
Councils have defended their salary structures, arguing that attractive pay rates are necessary to recruit high-caliber leadership and remain competitive with the private sector. Slough Borough Council indicated that its chief executive was appointed by government intervention commissioners and is different from a traditional chief executive due to his dual role.
Newham Council attributed its financial support request to the £100 million cost of aiding families facing homelessness over the next three years, claiming it has one of the lowest council tax rates in London. Croydon Council stated that its staff salaries are determined by an independent evaluation system to ensure alignment with other councils.
Somerset Council noted that they are undergoing a restructuring to save £34 million by reducing senior management roles. They have already saved £4.1 million in salaries since the local government reorganization in April 2023.
Examples of Financial Mismanagement
Several councils facing financial difficulties have been accused of mismanagement. For instance:
- Bradford’s £50 million venue: The City of Culture for 2025, Bradford, has struggled with its new venue, Bradford Live, which was supposed to open in November 2024 after £50 million in renovations, but the operator pulled out without explanation.
- Birmingham’s IT system failings: Birmingham’s new finance and payroll IT system has faced multiple glitches since its launch in 2022, resulting in an inability to file auditable accounts, with costs expected to exceed £216 million by 2026.
- Windsor and Maidenhead’s golf club sale: To address its financial issues, Windsor and Maidenhead Borough Council plans to sell Maidenhead Golf Club for £105 million, a move criticized by local stakeholders.
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