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More than 28,000 council workers in UK earning £500k-plus

By South Wales Evening Post  |  Posted: February 20, 2013

Comments (17)

MORE than 28,000 council workers are earning upwards of £500,000 a year according to the TaxPayers' Alliance.

Across the UK it is costing £1.9 million in total. The cost of paying these staff is the equivalent of 7.5 per cent of council tax receipts.

This bill is down 12.5 per cent from last year but 118 councils increased the amount spent on staff earning more than £50,000 — some by millions of pounds. However, 266 local authorities reduced the number of officials receiving in excess of £50,000.

Matthew Sinclair, chief executive of the TaxPayers' Alliance, said: "It is incredible that some councils have even increased spending on high earning staff this year after a decade in which council tax doubled across the country and when every local authority needs to find savings and ease the burden.

"In those cases where it is the result of redundancy payments then we need to see the savings soon."

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  • Eureka1963  |  March 26 2013, 1:15PM

    I totally agree with you in that those responsible should be accountable for the decisions relating to the financial investments to these Icelandic banks and at the very least offer an explanation (and apology) for their costly errors of judgement. However we both know that will not transpire. The pathetic response from Neath Port Talbot County Borough Council Finance director Derek Davies was "It should be emphasised that we have at all times complied with Treasury Management Code of Practice" or as I understand it to mean "I took the decision but it's not really my fault". In fact NPT made its final deposit into the LANDSBANKI ISLANDS HF bank on the 8th September 2008 and exactly one month later that bank was declared in default, now that takes some beating - Derek Davies retired late last year. It came as no surprise to find he rose through the ranks. And more so with the bankers, it is the taxpayer and especially the impoverished that will suffer while these 'financial experts' scoff at the trough.

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  • weslangdon  |  March 23 2013, 11:20AM

    Its just a list without any details as you present it, can I suggest you forward the whole letter to the EP perhaps they can print the detail of payments, to which bank, who authorised them, and do they still work for the Council. Responsibility also lies with the Cllrs with financial oversight, so go on name and shame.

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  • Eureka1963  |  March 22 2013, 4:16PM

    weslangdon - fyi This was forwarded by NPT Council Head of Financial Services and in response to my FOI request. As surmised, it identifies that throughout 2008 funds (taxpayers hard earned money) were being "thrown" into the Icelandic banking system (which was in meltdown), funds which were no doubt very gratefully received! "Further to your FOI request below received in 25 February 2013, please find below the information that you have requested. GLITNIR BANK 21 February 2008 HERITABLE BANK LTD 20 March 2008 HERITABLE BANK LTD 25 June 2008 HERITABLE BANK LTD 3 September 2008 HERITABLE BANK LTD 29 August 2008 KAUPTHING SINGER & FRIEDLANDER 28 April 2008 KAUPTHING SINGER & FRIEDLANDER 17 March 2008 KAUPTHING SINGER & FRIEDLANDER 6 May 2008 LANDSBANKI ISLANDS HF 12 November 2007 LANDSBANKI ISLANDS HF 4 February 2008 LANDSBANKI ISLANDS HF 10 June 2008 LANDSBANKI ISLANDS HF 8 September 2008 LANDSBANKI ISLANDS HF 20 March 2008 Please note that the Council has already received back £14.5m from the initial investment, as set out in the table below. The Council is continuing to receive regular repayments of funds from the various Banks with further amounts due in 2013/14 and over the coming years". All the best...

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  • weslangdon  |  February 26 2013, 6:32PM

    The most facile answer would be premiership footballers, some professionals with specialisisms may also attract very high salarys, actuarys, some accountants. One salient feature of the Banking collapse was the poor [relative] pay of the Financial Services Authority whose role it was to oversee the banks compared to those it had the duty to supervise. The consequence was poor supervision. regards W

  • Eureka1963  |  February 26 2013, 5:58PM

    Name me any company where employee's are paid more than the directors of that company, other than within the Civil Service? There should have been a wage structure in place to prevent this from happening, unfortunately it is much too late now? The pay for the highest three per cent of public sector jobs has risen by a massive 64 per cent in the past decade, yet the lowest paid are the ones losing the jobs. However I do agree that MP's do have an extremely generous salary as well as the add-on's such as pension benefits and of course their expenses. They now believe they are worth a 32 per cent pay increase - just shows how distant they are from reality, a reality where the only banks booming with business are the food banks. Well it has been an interesting discussion and thank you for your time, maybe we will 'chat' on another topic sometime? p.s. FOI has been sent and is in the hands of NPT, I will update you on this page once I have had their response. Keep Well

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  • weslangdon  |  February 26 2013, 12:14PM

    A think that a FoI request directed at NPT might clear the matter up. Comparison with Cameron's salary is a touch simplistic as he and most senior cabinet ministers take on the roles they play in expectation of vast rewards when they step down so are prepared for the "sacrifice" [this is irony] of only £142,500. With Cameron the salary is almost incidental given his wifes wealth. Where we might agree is that MP's in Wales are considerably overpaid given that most of their workload is devolved to the Assembly

  • Eureka1963  |  February 25 2013, 1:52PM

    You are a hard man to convince but if the Icelandic investments had been transacted before 31st March 2008 then why would NPT not disclose them? However I totally agree with you on the public employee excessive salaries as currently there are 38,000 government workers that are paid over £100,000, and 9,187 earn more than the Prime Minister (£142,500). The cost cutting is being done at the grassroots whilst these top earners are costing the taxpayer £5B a year. In the private sector salaries and bonus arrangement are reflective of performance, and in the case of the banks the government should have declared those that needed bail-outs bankrupt, and the share-holders and unsecured creditors lost all (as the share holders of Bradford & Bingley/Northern Rock did), and overhauled the banking industry with a competent regulatory body. The banks were too big for that. And of course these banking bonuses should not be paid at this time, at least not until the share price has reached the governments purchase price.

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  • weslangdon  |  February 24 2013, 4:54PM

    At best your claim is inconclusive, what I would say to you is that we have to many local authorities and that considering how small some are, then the salaries paid to senior officers are excessive. However I would stress to you that many private sector posts are also excessive, ludicrously so in the case of banks and other financial institutions and in comparison everything carried out by the public sector is valuable and abover all useful.

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  • Eureka1963  |  February 24 2013, 3:18PM

    As you can understand the (in this example Neath Port Talbot - NPT) councils are reluctant to divulge such 'sensitive' (and damaging/embaressing) financial information. However I can provide you with NPT Bank Investment data as at 31st March 2008, (http://tinyurl.com/agzpvl2) where it is clear that their was no investment in any Icelandic Banks at that time. If you require further proof then I suggest you draft an FOI and direct it to NPT. f NPTCBC uses Fitch ratings to derive its counterparty criteria. All credit ratings are continually monitored and all changes are alerted by its adviser's creditworthiness service. If a downgrade results in the counterparty/investment scheme no longer meeting the Authority's minimum criteria, its further use as a new investment is withdrawn immediately. The Authority's policy allows investments up to a maximum total of £25m for periods of more than 1 year and up to 5 years. As at 31st March 2008 the Authority had the following deposits which are for periods of more than one year: Amount Date Arranged Maturity Date Rate 12-month callable deposit National Australia Bank £2.0m 15 June 2007 15 June 2010 5.48% 6-month callable deposits HSBC Bank Ltd £5.0m 16 Aug 2005 16 Feb 2009 5.05% HSBC Bank Ltd £3.0m 20 Oct 2006 20 Oct 2010 5.18% TOTAL £10.0m

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  • weslangdon  |  February 23 2013, 9:09PM

    Icelandic banks were already in crisis in 2008 high interest rates reflected their inability to attract capital. Similarly UK banks were going bust too, Northern Rock, RBS, HBoS into a forced merger. If you are saying that Councils moved their investments there in 2008 then they were very stupid indeed but have you evidence for this...isn't it the case that the money was already there long before the crisis started.

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