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James Robinson

Town Hall Rich List 2023: North East council boss's expenses were highest in the country

The former CEO of Northumberland County Council claimed £40,000 in expenses in a single year - more than any other council officer in the country over the same period.

Think Tank the Taxpayer's Alliance has released its annual Town Hall Rich list, detailing the amount paid out by local authorities to officers.

The figures, which relate to the 2021/22 financial year, showed that former Northumberland County Council CEO and head of paid service Daljit Lally received the highest expenses claim of any officer in the UK.

Read more: Amazing drone footage showcases restoration of world-famous North East bridge

Mrs Lally left the council last summer after a £209,000 payout was agreed by county councillors.

Also on the list was Gateshead Council Chief Executive Sheena Ramsey, who claimed £14,842 in the same year. However, Gateshead Council has pointed out that this included the CEO's fee for acting as the returning officer for local elections.

A spokeswoman for the council said: "We’ve continued to provide crucial support to our residents, particularly those most in need, throughout the pandemic and the ongoing cost of living crisis. We want to give everyone in Gateshead the opportunity to thrive and understand that local democracy and listening to the views of our residents is crucial in everything we do.

"Elections in Gateshead are delivered in a transparent and accurate way and the amount referred to in the Taxpayers’ Alliance report is the Returning Officer fees for local elections, which is publicly declared in our Statement of Accounts.”

Northumberland County Council also paid out remuneration packages of more than £100,000 to more officers than any other in the North East. However, the council has pointed out that it has since introduced sweeping changes to its top team that will have brought the wage bill down.

A spokesman for the county council said: "The most senior local government posts come with significant statutory responsibility and that is reflected in the salaries paid by councils across the UK.

"In Northumberland we are committed to providing first class services and value for money to all its residents, including driving down costs where we can - and we are confident this is being achieved. The figures relating to the number of employees earning over £100k relate to 2021/22 when a number of interim arrangements were in place.

"This year a new Chief Executive has come into post alongside new executive directors in a more efficient and streamlined top management structure. If proposals are agreed next week our new structure will reduce to 15 posts earning more than £100k.

"We fully expect that this senior management restructure will save us in the region of a million pounds."

Elsewhere, an unnamed executive director of neighbourhoods at Sunderland City Council was the highest total remuneration paid to any officer in the North East that year, as well as the second-highest in the country. Total remuneration includes salary, pensions contributions, benefits in kind, expenses, bonuses and redundancy payments.

Also featuring on the list was Mrs Lally, who received a total payment of £279,937 - putting her eighth in the overall table - while the £269,854 paid by Sunderland City Council to executive director of city development Peter McIntyre was the 14th-highest.

A spokesman for Sunderland City Council said: "We continue to deliver crucial services during the cost of living crisis, including services to thousands of vulnerable adults and children, and are delivering hundreds of millions of pounds of investment that is making Sunderland a more dynamic, healthy and vibrant city.

"This work involves major social and legal responsibilities and remuneration to senior and ex-staff, including pensions and benefits where they have left after long service, can reflect this."

A payment of £36,192 paid to Newcastle City Council's director of public health was labelled as the highest bonus paid out to an officer in 2021/22. However, the city council has moved to clarify that this was not actually a bonus, and came at no cost to the council or the taxpayer.

A spokesman for Newcastle City Council explained: "As an organisation we do not offer any performance-related pay or bonus scheme for any members of staff.

“The amount quoted in the report was a contractual entitlement to the previous postholder through the Clinical Excellence Awards scheme administered and funded by the UK Health Security Agency (UKHSA) and was no additional cost to the council.”

Gateshead Council and Mrs Lally were contacted for comment but did not respond.

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