The SNP Government has blocked a golden goodbye payments scheme for councillors who lose in next year’s elections. Deputy First Minister Jenny Gilruth said “rushing” a plan worth up to £27,000 for local politicians could confuse the public.
Independent Review Recommendations Rejected
An independent review from 2024 submitted recommendations to SNP Ministers for a severance scheme. Experts said the lack of severance or resettlement payments for councillors could be a barrier to people standing. They recommended that councillors should receive one month’s salary for every year served, up to a maximum of twelve years. The group said a scheme should come into force for councillors who lose office at next year’s town hall elections.
In a letter to Shona Morrison, president of council umbrella group COSLA, Gilruth ruled out a severance scheme for 2027. She backed the principle of exit payments but claimed there is “insufficient time” for a new system to be brought in before next year.
Financial Constraints and Public Confusion Cited
Gilruth also referred to looming public sector cuts: “As you are aware, difficult financial decisions and transformational change throughout the public sector across Scotland is required over the coming years. In this context it is especially important that the full details of how a scheme would operate are fully developed, well understood and consulted on as a clear and coherent approach. Rushing an incomplete scheme in time for next year’s election as a partial and temporary approach for 2027 would duplicate effort, costs and scrutiny on the same issue and could cause confusion for the public.”
Disparity with MSPs and MPs
Her decision comes despite MSPs and Ministers being entitled to severance payments when they lose office. The independent review modelled their plan on the payment scheme for MSPs. A COSLA spokesperson said: “COSLA are profoundly disappointed in the Scottish Government’s position that a severance scheme for elected members cannot be implemented in time for the 2027 local government election. The recommendation to introduce a scheme, which came from an independent body, is a key aspect of reducing barriers to elected office and ensuring that Councils are more representative of communities. A severance scheme for elected members would bring them into line with what is already available for MSPs and MPs. Just a few months ago, departing MSPs were eligible for up to almost £78,000 – more for those with Ministerial or Cabinet positions. Scotland’s councillors deserve parity and equal treatment with our national politicians.”
Councillor Criticism
A councillor told the Record: “This is a deeply disappointing decision by the Scottish Government. Once again Councillors are being treated as second class politicians. While an MSP serving a single term, or even part of a term if they are elected in a by-election, receives a severance payment, councillors, who in many cases have served for over 20 years, receive nothing. That surely cannot be right. The Scottish Government must think again about this and opposition parties should be challenging them. After all the proposal for a severance scheme for councillors, modelled on the scheme for MSPs, came from an independent committee the Scottish Government set up. They have sat on this recommendation for two years. They now need to get on and implement it in time for the 2027 election.”
