Liverpool City Council senior staff agree pay cut

A total of 32 of the most senior staff at Liverpool City Council have volunteered for a pay cut which will save half a million pounds a year in wages.

The 25 assistant executive directors and heads of service who make up the 'Leadership Group' have agreed that bonuses worth 10 percent of their salary - paid for meeting performance targets - should be axed permanently. It will trim the overall cost of their wages by £350,000.

It comes after the seven-strong executive management team sacrificed their 15 percent performance related pay - worth a total of an additional £150,000 - earlier this month.

It is believed to be the first move of its kind in local government, and is part of a series of measures designed to protect front line services in Liverpool from reductions in public spending.

The council is also offering voluntary severance to managers earning more than £40,000 a year that don't have a front line role.

Council leader Joe Anderson said: "I am really pleased that the entire leadership team are accepting that the difficult financial position we are in is something that they can help with, and are leading by example.

"It sends out a really strong message that we are all in it as a team, ready and willing to make changes for the good of Liverpool and its people.

"There is no doubt that local government budgets are going to be significantly reduced over the next few years which means tremendously difficult decisions around jobs and services.

"The recent in-year cut to our area based grant and the axing of the Building Schools for the Future programme reinforce the need for radical action in these difficult times.

"We have to pay the going rate to attract and retain people to lead the organisation, but it is a privilege to serve the people of Liverpool, and I am anxious that salaries are not overly inflated at a time when our residents are having to tighten their belts."