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National
James Robinson

Northumberland county councillors urged to block payout to chief officer after breach of financial rules

An influential pressure group has called on county councillors to block "excessive" payment to council chief executive Daljit Lally ahead of a crunch meeting at Northumberland County Hall.

An extraordinary meeting of Northumberland County Council has been called where members will consider interim arrangements for the role of the head of paid service - or chief executive.

Councillors will also receive a report on "employee relations" concerning "ongoing litigation, including options for mediation and alternative dispute resolution." The agenda for the meeting indicates that this part of proceedings is likely to be held behind closed doors, with both the press and members of the public blocked from attending.

Read more: Prolific thief jailed after repeatedly stealing petrol from Northumberland service stations

The Taxpayers Alliance has said that local taxpayers are "rightly concerned" following the issue of a section 114 notice relating to unlawful payments at the council, as well as a damning report by Max Caller. The unlawful payments related to the council's international business, and included a £40,000 "international allowance" paid to CEO Daljit Lally in connection with the business.

Northumberland County Council Chief Executive Daljit Lally (ncjMedia)

The group are now calling on councillors to "vote to block any excessive payouts" and has asked them to sign an open letter, seen by the Local Democracy Reporting Service. The group also intends to hold a small protest outside County Hall before Wednesday's meeting.

The letter, addressed to councillors, read: "Like many of your residents, we have been extremely concerned by reports of financial impropriety at Northumberland County Council.

"As if the issue of a Section 114 notice were not serious enough, a report by Max Caller CBE described the council's working environment as "harmful" and that 'there is a lack of organisational stability”', with a high degree of criticism focussed on the council’s chief executive.

"At tomorrow’s meeting you will receive a report 'concerning ongoing litigation, including options for mediation and alternative dispute resolution"...Given the aforementioned financial impropriety, the TaxPayers’ Alliance is calling on councillors to block any excessive payouts to council officers in breach of financial rules.

"With this in mind, we invite you to show your support for hard-pressed local taxpayers and sign our “No Payout Pledge”. Our team will be at Harry’s Cafe Bar, Morpeth, on Wednesday 27th July from 10am to 1pm where you can personally sign the pledge."

Responding to the letter, a spokesman for the council's Conservative administration said: "We note the comments, the next stage of the process will be before a full council where elected members will be be provided with the latest information."

Northumberland County Council declined to provide any additional comment. CEO Daljit Lally was also contacted for comment but did not respond.

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