Greenwich councillors are due to vote on a proposal to increase their basic annual allowance from £11,906 to £16,882, with the higher rate taking effect from 1 December if approved.
The £4,976 increase, equivalent to approximately 41.8%, would apply to the basic allowance available to each of the borough’s 55 councillors. A separate set of proposed changes would increase payments for roles carrying extra responsibilities.
The decision is scheduled for a full council meeting at 7pm on Wednesday 11 November at the town hall in Woolwich. The changes have not yet been approved.
What the proposal would cost
Council finance officers estimate that the proposed decisions would create an additional financial pressure of £200,000 to £300,000 in the current financial year. They put the full-year effect at £700,000 to £800,000.
The council projects a separate recurrent funding gap of £30.9 million for 2027–28. The gap is a wider budget forecast, not the cost of the allowance changes.
On the basic allowance alone, paying all 55 councillors the proposed annual rate for a full year would amount to £928,510, compared with £654,830 at the current rate. That is a difference of £273,680, assuming all 55 receive the full amounts. It excludes special responsibility allowances and other costs and is not the council’s estimate for the complete package.
Why the rates are being reviewed
Councillors are not council employees and receive allowances rather than a salary. The basic allowance is intended to reflect the time and responsibilities involved in the role. Councillors with additional duties can receive a special responsibility allowance on top.
The proposed basic figure follows the level recommended by an independent panel that advises London boroughs. The panel recommended £15,960 in its 2023 review, with annual increases linked to local government pay awards. The council says that, after those increases, the recommended figure is £16,882.
The panel’s recommendations are advisory. Councils must take them into account when setting their schemes, but decide their own rates. The council says Greenwich’s basic allowance has remained below the recommended level since 2014–15. It increased by 3.2% in March this year.
The alternative before councillors is to make no change during the current financial year and set rates for 2027–28 in the usual way next March.
Additional roles and opposition response
The proposed scheme also changes allowances for roles including cabinet members, committee chairs and opposition leaders. The leader’s special responsibility allowance would rise from £56,600 to £65,681. Combined with the proposed basic allowance, that would bring the leader’s total to £82,563 a year.
For each of the eight other cabinet members, the proposed special responsibility allowance is £42,693, giving a total of £59,575 when combined with the basic allowance. Individual increases vary by position.
The council proposes introducing payments for the deputy leader and whip of the largest opposition group, replacing two former cabinet assistant allowances. It also proposes provisions for sickness absence and participation in the local government pension scheme.
Labour council leader Anthony Okereke argues that low allowances can deter people who cannot afford to devote time to public service. He has said some councillors are falling into debt while carrying out their work. The Green group has also expressed support, arguing that a fairer rate could reduce barriers to standing for election.
Conservative group leader Charlie Davis opposes the package, calling it a reckless use of council taxpayers’ money while the borough faces a budget gap.
The council says leaders of the political groups have agreed to work on a description of the councillor role and a system for reviewing members’ performance, with the aim of implementing them as soon as reasonably practicable in 2027–28. It also proposes annual adjustments to basic and special responsibility allowances in line with local government pay settlements, starting in 2027–28, for up to four years unless the council makes a further decision.
Featured image: AI-generated illustration.
