Communities Secretary John Denham today announced a review to examine how Town Hall chief officers are being allowed to walk off with big pay-offs after falling out with the council’s political leadership.
Today’s action has been prompted by a spate of cases where well-paid local authority executives have been dismissed with large severance payments – only to be appointed shortly afterwards to a senior position in another authority. Some executives appear to have parted company on the basis of a fall-out or personality clash with the council leader – not because of any shortcomings in their professional abilities.
Mr Denham has asked the Audit Commission, which is responsible for monitoring Local Authority finances, to look at the specific issue of so-called ‘boomerang bosses’ and to establish whether the practices and procedures that govern this issue are sufficiently robust to protect the taxpayer and offer value for money.
He wants to be reassured that taxpayers’ money is not being used inappropriately.