Lib Dems cut council severance payouts
October 16, 2007 5:45 PM
Cllr Tony Woods said cutting severance would allow more money to be invested in council services
Liberal Democrat run Northampton Borough Council is to cut severance packages as part of measures to put the council on a sounder financial footing.
The change was agreed last night following a promise by the Liberal Democrats to review the enhanced severance scheme agreed by the previous administration with Labour's support.
By removing Added Years payments from the borough council's pension scheme the council's costs will be drastically reduced from those previously agreed by the Tories of £792,000 per annum, equivalent to a 3% rise in Council Tax.
Leader of Northampton Borough Council, councillor Tony Woods said:
"The Tories' scheme was unjustifiably generous at the cost of the ordinary taxpayer. We promised we would do whatever we could to put the council on a more secure financial footing and this is the first of many more prudent measures to deliver that promise.
"I want to see more money put into our services while being fair to our staff.
"We all know about the financial challenges facing the council. Sometimes tough decisions have to be made. In the past the council has been able to offer a very generous package to employees, but now we must recognise our financial limitations and offer a package more in line with that of other councils and private businesses."
The new scheme will apply to all Northampton Borough Council employees from 17 November.
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