Statement by COSLA: Pay framework for Scotland’s local authority Chief Executives

"It is appropriate and right in employment practice to review salaries periodically, to ensure remuneration reflects the demands of the role.

“The pay framework for Scotland’s 32 local authority Chief Executives is the responsibility of COSLA and has not been reviewed in nearly 25 years (last review being in 2001). Since then, the role and legal duties of councils, of which the Chief Executive is the lead officer, have changed significantly in terms of increased complexity, scale, and level of risk.

“Council population sizes — a key component of the pay framework — have changed and Chief Executive pay has not kept pace with internal or wider public sector levels, creating challenges in recruitment and retention.

“Across Scotland, council Chief Executives, as Heads of the Paid Service, are accountable for the delivery of hundreds of diverse and vital public services. Tens of thousands of citizens across local areas rely on these every single day – from education and childcare, housing, social work and care, to roads and transport, waste and recycling, and leisure and culture.

“On 31st October, COSLA Leaders considered an independent report on Chief Executive remuneration. This was jointly commissioned by COSLA and the ALACE Trade Union in line with a collective agreement made in 2010 that a review would take place. It was agreed that an updated pay framework will be implemented based on the independent recommendations. “COSLA undertakes the Employers’ Function on behalf of all local authorities, and this decision has been taken nationally, at COSLA level, via our established governance structures.

“Implementation of this review is intended to ensure we have in place a robust, fair and fit-for-purpose pay framework which is based on appropriate objective measures and reflects the demands of the job. The new pay framework will help Local Government attract and retain the leadership we require to deliver for Scotland's people and our communities, and meet the challenges we face now and into the future.”

Background information

• The existing pay framework for LA Chief Executives was established following Sir Neil McIntosh’s review in 2001 and has not been reviewed or updated since then. It is appropriate employment practice to review salaries periodically, regardless of role. Job roles across Scottish Local Government are subject to review and evaluation via established Job Evaluation and Job Sizing schemes, which exist to ensure remuneration appropriately reflects the demands of the job.
• The rationale behind undertaking the review includes relative changes in population size across councils since 2001, which means the rank order of Chief Executive pay levels may no longer align with the rank order or job size. There have also been significant changes in the role and responsibilities of councils and in turn the role of Chief Executives as lead officers – including increased complexity, scale of responsibilities, and level of risk. In addition, Chief Executive pay has been eroded compared with both internal and external public sector comparators over the years, which is impacting on recruitment and retention.
• The independent review concluded that benchmarking against other public bodies demonstrates that LA Chief Executive salaries have not maintained their position relative to Scottish public sector posts of lesser scope, scale, and accountability.