Axed council bosses share bumper pay-off
SENIOR council staff axed as part of a spending review were given ‘golden handshakes’ totalling £344,000.
South Derbyshire District Council doled out the sum to seven high-ranking employees as part of redundancy payments following its Senior Management Review in March 2011.
As a result of the review, various highly paid roles were amalgamated in a bid to save millions on wages over the next few years.
The amount has been revealed following the publication of the authority’s annual audit letter for 2010/11, which stated it overspent on its budget by £312,000 during that financial year.
A report of the council’s chief finance officer to the finance and management committee stated that while they had overspent, the figure did not take into account the amount given out in respect of statutory termination costs associated with the review.
It said the authority’s Medium Term Financial Plan had been adjusted by a corresponding amount in 2011-12 to compensate for it.
The report stated: “Therefore, this is purely a timing difference and is affordable within the council’s resources.”
A council spokesman said: “The Senior Management Review announced in March 2011 will save South Derbyshire District Council £2.2 million over five years.
“The review, which saw two directors decrease to one, six heads of service reduced to three and six principal officer posts halved, ensured the authority continues to be run effectively while cutting costs and protecting services.
“As reported to our finance and management committee last year, £344,000 has been paid in respect of statutory termination costs, including pensions, associated with the review.
“The council continuously looks at how it uses resources to become more cost effective.
“This streamlined and strategic management structure is helping us to provide even better value for money to taxpayers.”
Last year, it was revealed that several executives at East Staffordshire Borough Council had been awarded more than £325,000 after being made redundant.
