Liberal Democrats write to council chief over equal pay concerns
Following the concerning recent news about Birmingham City Council – which faces government intervention following financial difficulties relating to ‘Equal Pay’ policy – Liberal Democrat councillors have written to Oldham Council Chief Executive Harry Catherall seeking an update on Oldham’s financial position.
In a letter to Mr Catherall, Oldham Liberal Democrat Leader councillor Howard Sykes MBE said, “You will be aware of reports that at least 26 English councils are at serious financial risk. Most recently, Birmingham City Council have issued a section 114 notice (meaning a council cannot authorise any further spending), with ‘Equal Pay’ disputes cited amongst the reasons for failure.”
“I therefore write to ask for an update on Oldham’s current financial position, especially as relates to the issues that surround Equal Pay, its impact on council finances; and the pressures facing the care sector.”
Councils across the country face mounting financial pressure, with research conducted by the Special Interest Group for Municipal Authorities (Sigoma) indicating that at least 26 English councils are at serious risk of following Birmingham into financial special measures.
Inflationary pressures and related pay rises, as well as rising demands across the care sector are continually cited as prominent contributing factors by councils who are at high risk.
Councillor Sykes said, “After a decade and a half of cutbacks, councils have been forced to outsource many vital services to contractors. We need to be sure that Oldham is not left vulnerable to any financial liabilities our partner organisations might have incurred, whether it is in relation to equal pay disputes, as was the case in Birmingham, or anything else that represents a risk.”
NOTES
21 Sept 23
Harry Catherall
Chief Executive of Oldham Council
Dear Mr Catherall,
RE: Oldham’s financial position relating to Equal Pay
No doubt you will share my alarm when reading the of the financial difficulties faced by so many local authorities over recent months. It is no exaggeration to say that local government faces an unprecedented period of financial uncertainty and instability born of more than a decade of cuts to local authority budgets.
You will be aware of reports that at least 26 English councils are at serious financial risk. Most recently, Birmingham City Council have issued a section 114 notice, with ‘Equal Pay’ disputes cited amongst the reasons for failure.
Research conducted by the Special Interest Group for Municipal Authorities (Sigoma) has indicated a growing risk posed financial pressures across local government. Inflationary pressures and related pay rises, as well as rising demands across the care sector are continually cited as prominent contributing factors by councils who are at high risk.
I therefore write to ask for an update on Oldham’s current financial position, especially as relates to the issues that surround Equal Pay, its impact on council finances; and the pressures facing the care sector.
It would be helpful if you could address the following points in your reply:
- What is Oldham’s current position relating to Equal Pay Policy?
- Are there any historic ‘Equal Pay’ settlements outstanding that may present an issue to the council’s financial standing?
- Is there any risk of ‘Equal Pay claims’ specifically regarding Miocare?
- Are there any financial risks posed to Oldham through dealings with any of our social care and other service providers (OCL and alike) in relation to ‘Equal Pay’ policy.
I thank you in advance for your considered response.
Best wishes,
Councillor Howard Sykes MBE