Southwark Council is to scrap its controversial ‘golden goodbye’ scheme that has seen departing cabinet members receive up to £13,911.
Introduced in 2016, the scheme has seen top councillors receive ‘loss of office payments’ equivalent to four weeks of their special allowance salary, plus another week for every year they served the cabinet. Between April 2019 and April 2021 alone, three departing cabinet members received a total £31,149,26.
Eyebrows were also raised when ex-housing chief Leo Pollak, who resigned after running an anonymous pro-development Twitter account used to harangue local residents, received a £4,881.10 pay-out. But at Council Assembly on Wednesday, March 22, Labour councillors following the whip are expected to vote to halt the scheme.
Lib Dem councillor Graham Neale said: “Residents will be relieved that they have finally decided to scrap these ridiculous pay outs. Labour’s seven years of stubborn resistance to any suggestion that these payments be stopped shows the wasteful attitude they have in regards to residents’ money. The Liberal Democrats will now be requesting that any members who received a golden goodbye fully reimburse the council, or at least donate it to charity.”
When the scheme was first introduced in 2016, Lib Dem politicians branded it “rotten” and toxic”, especially given the council was bemoaning budget cuts at the time.
Then council leader Peter John said the “small payments” were designed to provide councillors with financial stability, thereby attracting candidates from “all walks and stages of life, bringing a healthy diversity to our front bench … In contrast to many parts of the country where the only people who are in a position to devote themselves to serving their borough full-time are the affluent or retired, Southwark wants a cabinet that truly reflects the diverse nature of our population. ”
But this did little to quell Southwark residents’ resentment when, faced with an ever decreasing local authority budget they have simultaneously watched councillors walk away with sizeable pay-outs.
When councillors leave in controversial circumstances, as with Cllr Pollak, a Standards Committee says whether a payment should still be given.
Given the stated aim of golden goodbyes was to ensure diverse political representation, it leaves the question as to how the council will continue to attract candidates from different walks of life.
Cllr Stephanie Cryan, Cabinet Member for Communities, Equalities and Finance, said: “We have reinforced our commitment to having diverse representation amongst councillors by signing up to the Co-operative Party’s Diverse Council’s Declaration. Councillors should reflect the diversity of all of our communities across Southwark and this declaration commits us to working to improve diversity in democracy.”