Newly released figures have exposed that Scotland's 32 local authorities have paid out a staggering £63 million in 'golden goodbye' packages to high-earning staff since 2022. This massive expenditure on six-figure exit deals comes at a time when councils are pleading financial strain, using it to justify significant increases in council tax for residents.
Soaring Costs and Council Leaders' Outrage
The data, compiled by the Scottish Conservatives from official council accounts, shows the total cost of exit packages exceeding £100,000 reached £62.6 million. Spending on these lucrative payouts has risen sharply, from £12.64 million in 2022/23 to £28.09 million in 2023/24, before a slight dip to £21.89 million in the 2024/25 period.
Scottish Conservative finance spokesman Craig Hoy launched a scathing attack, stating: "Hard-working Scots who’ve been hammered by rising council taxes will be furious that councils have shelled out millions on golden goodbyes. Our local services are at breaking point, but instead of fixing the issues that actually matter, council bosses are allowing the bill for public-sector payouts to balloon."
The Biggest Spenders and Audit Concerns
The analysis reveals a stark postcode lottery in payout practices. North Lanarkshire Council incurred the largest total bill since 2022 at £15.38 million, closely followed by Glasgow City Council at £11.25 million and Renfrewshire at £7.92 million. In contrast, seven councils – including Clackmannanshire, Orkney, and South Lanarkshire – issued no six-figure exit packages at all.
The situation in Glasgow has drawn particular scrutiny from auditors. A report by Audit Scotland in September condemned the council for significant early retirement and redundancy payments to five senior officials. The deals, including a £357,845 pension contribution for former chief executive Annemarie O'Donnell, were approved without the knowledge of SNP council leader Susan Aitken.
Audit Scotland found the process "deeply concerning," noting that restructuring proposals appeared to have been approved by individuals who personally benefited, and there was a lack of independent scrutiny and formal documentation.
Council Defences and Government Stance
In response to the criticism, councils have defended their actions. A spokesman for North Lanarkshire Council argued that characterising the payments as "golden goodbyes" was misleading, as the majority of funds go to pension schemes and represent legal obligations, not discretionary bonuses. They claimed their restructuring has delivered ongoing annual savings of over £600,000 since 2018.
Glasgow City Council stated it has "robust processes and monitoring procedures" in place and has publicised major governance updates. Meanwhile, a Scottish Government spokesman emphasised that it is for individual councils to manage their budgets and staff terms, but added: "We would expect all councils to make decisions that meet their responsibility to secure value for money."
The revelations place intense focus on council spending priorities as households across Scotland contend with higher taxes and perceive cuts to frontline services.
