Council approves controversial £225k redundancy package with no debate

Hambleton District Council's former offices in Northallerton now used by North Yorkshire Council.

A council which is set to be abolished in five months has unananimously approved a pay-off of about £225,000 for its chief executive.

With the exception of the authority’s leader, 20 Hambleton District councillors made no comment as they agreed the settlement for Justin Ives, despite criticism from Unison, which represents staff at the council, and the Taxpayers’ Alliance.

Unison said the size of the severance package had left workers “dismayed and angry” while the Taxpayers Alliance called on the authority to “get a grip” on such payments.

Critics highlighted that while the median salary at Hambleton is £22,405, Dr Ives’ salary is £132,676, but some councillors responded highlighting the chief executive’s achievements in the role and said finding another such job would be difficult.

Introducing a recommendation to approve the payment, Coun Robson said he hoped members had read a report that he had not written which outlined reasons why the authority should give Dr Ives extra money on top of his redundancy payment to keep him at the council until it ceases to exist on March 31.

The report stated: “The arrangement is part of measures to ensure for the benefit of the people of Hambleton, the efficient and effective exercise of the council’s functions for the remaining period of its being and a well-managed handover to North Yorkshire Council.”

It added in making the recommended settlement, the requirements to secure value for money and to ensure the continued efficient delivery of the council’s functions had been taken into account.

It states: “The proposed settlement will secure that we retain the chief executive until the council ceases to exist and that he will be able to provide the management needed during the transition to ensure effective delivery.”

However, the report also featured advice from an independent financial advisor the council employed over the issue which highlighted the chief executive had a six-month notice period and that leaving without giving six
months’ notice would be a breach of contract.

The advisor also pointed out the council’s performance related pay scheme for senior officers, which provides for a payment of up to 20 per cent of salary, would to a limited extent, operate as a retention incentive.

Coun Robson told the meeting members of the council had also been provided with a further report about the situation, the contents of which he said were “restricted”.

He said: “For reasons that are explained in the report it is not a single penny more than we are contractually obliged to do to the position of chief executive.”

Councillors were then invited to ask questions about the proposal, but no one came forward before voting through the settlement package.

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