Scottish councillors who are voted out of office or choose to stand down are poised to receive substantial 'golden goodbye' payments for the first time, in a contentious policy that could burden taxpayers with a bill of up to £10 million every local election cycle.
Details of the Controversial Severance Plan
The Convention of Scottish Local Authorities (Cosla), which represents the country's councils, is driving the plan to introduce severance payments for councillors who lose their seat or retire. The radical change is scheduled for implementation in time for the 2027 local government elections.
Under the proposed scheme, hundreds of departing town hall representatives could be in line for individual pay-outs of up to £26,000 each. Cosla argues this measure is essential to encourage broader participation in local democracy and to help more Scots, particularly from under-represented groups, feel financially able to stand for election.
A Cosla spokesman confirmed: ‘We are pursuing the implementation of this for the 2027 local government election... based on the need and opportunity it provides to enhance the diversity of local elected members in Scotland.’
Fierce Criticism and Financial Context
The proposal has been met with immediate and fierce backlash from campaigners, who label it a ‘preposterous’ extra expense. This criticism comes at a time when household tax bills are at a record high and public finances face severe strain.
Elliot Keck, campaigns director for the TaxPayers’ Alliance (TPA), launched a scathing attack: ‘It would be an outrageous betrayal of local taxpayers if this preposterous policy were to be implemented.’ He emphasised that councillors were traditionally local volunteers, not salaried professionals, and argued the policy would further damage the relationship between residents and their representatives.
The TPA also highlighted that councillors in Scotland are already better remunerated than those in England. Since 2007, Scottish councillors have received a basic annual salary, recently increased to just under £26,000. In contrast, English councillors do not get a salary but can claim allowances typically ranging from £3,000 to £16,000 a year.
How the Payments Would Work and Their Cost
The policy follows a recommendation from the Scottish Local Authority Remuneration Committee (Slarc). It proposes ‘resettlement grants’ akin to those for MPs and MSPs. The formula suggests outgoing councillors receive one month’s salary per year served, capped at a maximum of 12 years.
With research indicating the average UK councillor serves 9.1 years and roughly 40% leave at each election, an estimated 500 councillors could qualify for an average payment of around £19,500. This would create a total cost to the public purse of approximately £9.75 million per election.
The Scottish Government, while backing the principle, stated the decision rested with local authorities. Cosla has now confirmed it is pressing ahead, stating its commitment to ‘remove barriers to elected office.’
The financial burden would ultimately fall on households, which have just seen their average Band D council tax rise to a record £1,543 per year (excluding water charges). This move coincides with research showing nearly three-quarters of Scots believe local public services have worsened over the past five years, adding to the controversy surrounding the proposed pay-outs.
