Review of Members’ allowances

Report: 5
Date: 19 March 2010
By: Chief Executive

Summary

This report considered the findings and recommendations of two reviews of the MPA members’ allowances and expenses scheme.

A. Recommendation

That

1. members consider the recommendations from the Senior Salaries Review Board referred to the MPA by the GLA regarding allowances to Assembly members of the Authority;
2. the Committee recommend to the full Authority that a special responsibility allowance for the position of Vice Chairman of the Authority be reinstated and the MPA members allowance scheme be amended to reflect this.

B. Supporting information

Legal background

1. The Metropolitan Police Authority (MPA) was established by the Greater London Authority Act 1999. Schedule 26 of that Act outlined the details of the membership of the Authority and the MPA’s ability to pay allowances to its members. The Act did not make provision for allowances to be paid to MPA members who were also members of the London Assembly.

2. The introduction of the Greater London Authority Act 2007 enabled the payment of allowances to be paid to any Assembly member appointed to the positions of Chairman and Vice Chairman of the London Development Agency, Transport for London and the London Fire and Emergency Planning Authority. This Act did not make any provisions for payment of allowances to Assembly members who were also MPA members.

3. However, the enabling Act in respect of the MPA is the Police and Justice Act 2006 and the detailed provisions of this Act were introduced by the Metropolitan Police Authority Regulations 2008. The Regulations, which came into force on 1 October 2008, and put the MPA in a different legal position to other functional bodies in that it allowed the Authority to pay an allowance to all assembly members of the MPA.

4. At the Authority meeting in October 2008, members agreed to amend the MPA members allowance scheme, so as to reflect the provisions of the Metropolitan Police Authority Regulations 2008 and provide an allowance to those London Assembly members on the MPA. In doing so, members noted that the Authority through the Association of Police Authorities (APA) had obtained some independent consideration of the proposals.

Senior Salaries Review Body (SSRB)

5. Each year the Greater London Authority (GLA) and its functional bodies review their member allowance schemes. As part of its review the London Assembly sought a review of remuneration for elected members of the GLA by the SSRB.

6. A number of recommendations were presented to the Assembly in November 2009, two of which fell outside the GLA’s remit and which related to the allowances paid to Assembly members by the Metropolitan Police Authority. The two recommendations from the SSRB relating to the MPA are:

‘Recommendation 3 - We recommend that’

• The Greater London Authority should collectively agree that Assembly members who are also members of the Metropolitan Police Authority should decline to accept the Metropolitan Police Authority supplement; and
• Legislation to be amended so that Assembly members who are also members of the Metropolitan Police Authority no longer receive an allowance for their work on the Metropolitan Police Authority.

If neither of these proves possible, then legislation should be amended to enable the salary of Assembly members who are also members of the Metropolitan Police Authority to be abated in full by the amount of the allowance they receive for Metropolitan Police Authority membership.

Recommendation 4 - We recommend that the total remuneration for the combined roles of Assembly member, Deputy Mayor of Policing and Vice Chair of the Metropolitan Police Authority remain unchanged subject to normal up rating.

The role of deputy mayor for Policing i2 non-statutory, non-paid and must continued to remain unpaid. The member’s salary, therefore, comprises only two elements - the basic Assembly members salary and MPA allowance of Vice Chairman.

7. The Chief Executive of the Greater London Authority wrote to the MPA to inform that the SSRB report and recommendations had been considered by the Assembly on 11 November 2009 and dealt with through corresponding Mayoral Decision which stated:

‘That the Mayor agrees jointly with the Assembly to refer SSRB Recommendation 3/4 and 5/6 to the MPA and LFEPA respectively, without comment or recommendation’.

8. As outlined above in paragraph 4 above, the Metropolitan Police Authority Regulations 2008 provided an allowance to those London Assembly members on the MPA. The recommendations from the SSRB states that those ‘Assembly members who are also members of the MPA should decline to accept the Metropolitan Police Authority supplement and legislation be amended to reflect this. The corresponding mayoral decision also indicates that if neither of these proves possible then an amendment to legislation would be sought to enable the salary of Assembly members who are members of the MPA to a be abated by the amount of the allowance they receive for MPA membership.

9. As part of the consideration of this matter it may now be appropriate for the Chief Executive to write to those Assembly members of the MPA to inform them of the SSRB recommendations and subsequent ‘Mayoral Decision’ and invite them to decline to accept the MPA allowance and to seek an amendment to legislation to this effect.

Vice Chairman of the Authority

10. The current MPA members’ allowance scheme (attached at Appendix 1) does not reflect the role of Vice Chairman of the Authority, if the Mayor is not Chairman of the MPA. Members may feel that the role of Vice Chairman of the Authority should reflect and recognise an acceptance of an additional commitment.

11. The Authority has previously recognised independent members who have held this role and it is proposed to amend the MPA members allowance scheme to this effect and reinstate the special responsibility allowance.

12. If members agree, it is proposed that the full Authority be asked to recommend that MPA members’ allowance scheme be amended to include an allowance of £5,000 per annum for the role of Vice-Chairman of the Authority.

C. Race and equality impact

There are no specific implications as a result of these recommendations.

D. Financial implications

1. Should Assembly members of the Authority decline to accept an allowance from the MPA and or legislation is amended to this effect there will be a saving to this budget.

2. If a decision on this matter does not prove possible and legislation is amended to enable the salary of Assembly members who are also members of the Metropolitan Police Authority to be abated in full by the amount of the allowance they receive for Metropolitan Police Authority, those with Assembly member pensions maybe affected.

3. The Authority has in the past acknowledged the role of vice-chairman of the Authority. If agreed the proposed supplement of £5,000 can be provided from within existing budgets.

E. Background papers

None

F. Contact details

Report author(s): Nick Baker, MPA

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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