Council chief executives may receive a £19k salary increase while residents face tax rises and service cuts.
A Labour MSP criticized the potential pay increases, noting council tax hikes and service reductions. He questioned raising CEO pay instead of protecting services. COSLA reviewed CEO pay, which is currently linked to population, considering whether the pay was fair.
Changes could raise salaries during a cost of living crisis. A leaked document showed the “recommended” pay raises, adding £611,113 to CEO salaries. This sum covers all Scottish councils, including Glasgow, with an average increase of £19,097, equaling a 12.47% average percentage increase.
Council workers received a 3.6% pay rise last year, agreed upon by unions and local governments. COSLA is considering other, more generous options. One population-based idea gives CEOs a £25,437 increase, a 16.03% rise. Another plan would give CEOs a £26,760 rise, a 16.84% increase.
Council leaders want more work on the proposals. The COSLA report notes “knock-on” effects, suggesting other senior salaries would likely rise too. A trade union leader criticized the proposed pay rises, calling it a “slap in the face” to workers, noting budget constraints and low pay offers.
He added that executives get big raises, while workers still fight for fair pay. He mentioned the promised £15 minimum wage and its slow progress. A Green MSP also expressed concern, saying workers would be stunned by such high CEO pay, noting their own smaller pay increases.
She highlighted frontline workers like teachers and librarians, who are not seeing rises anywhere near this level. She worries about costs and the message it sends, emphasizing the need for fair deals for all workers, not just CEOs.
The pay rise prospect comes after council tax increases, the biggest in 20 years. Some councils raised taxes significantly. North Lanarkshire and Scottish Borders voted for 10%, Fife went for 8.2%, Edinburgh backed 8%, and Glasgow agreed to 7.5%.
Clackmannanshire will pay 13%, and Orkney’s council tax could rise 15%. Town halls say the extra money will plug funding gaps and help protect services.
Glasgow’s former CEO earned £209,472 in 2023/24, while Edinburgh’s CEO earned £202,466 that same year. One politician said his budget is positive for councils and believes big rises are not needed, thinking a 10% council tax increase is too high. A COSLA spokesperson confirmed they discussed CEO pay, and leaders requested further analysis.