Plans to devolve power from the central government and empower local leaders could result in significant increases in taxpayer-funded staffing costs for regional government, according to an analysis by the TaxPayers' Alliance think tank. The initiative aims to shift authority from Whitehall into local communities, but critics argue it may lead to a rise in highly paid regional officials.
The analysis indicates that areas with directly-elected mayors have experienced a substantial increase in staff costs in recent years as they have assumed new responsibilities. Between the 2019-20 and 2023-24 fiscal years, the number of staff in six combined authorities earning at least £50,000 annually rose by 200 percent. Greater Manchester, for instance, saw an increase of 385 staff members, a 236 percent rise, in this pay bracket over four years. Similarly, the West Midlands reported a 175 percent increase, adding 201 staff members earning £50,000 or more.
Some of these regional officials command salaries that exceed those of senior civil servants in the central government. For example, the former chief executive of the Greater Manchester Combined Authority, Caroline Simpson, earned over £240,000 annually in her previous role, a figure higher than the £230,000 paid to the Cabinet Secretary, the highest-ranking civil servant. Katharine Hammond, chief executive of the South Yorkshire combined authority, earns £220,000 per year, surpassing the compensation of the top official at the Treasury.
Over the past five years, staff costs for nine existing combined authorities have doubled, reaching £341 million annually, an average increase of more than 34 percent per year. The West of England Combined Authority saw its staff costs surge from £4.2 million in 2020 to £20 million last year. The West Midlands Combined Authority's pay bill similarly grew from £29 million to £60 million in the same period.
John O'Connell, chief executive of the TaxPayers' Alliance, stated that devolution should not create an "expensive layer of government stuffed with highly paid officials." He suggested that if power is to be moved from Westminster, it should be channeled through existing councils where feasible, with caps on combined authority precepts and growth in regions matched by reductions at the center.
Senior Conservative MP David Simmonds, the shadow communities minister, commented that taxpayers might face a "Burnham penalty" to cover escalating staffing costs and salaries that are higher than those of even the Cabinet Secretary.
A government spokesperson affirmed that local authorities are independent employers responsible for setting their own wages but emphasized the expectation that taxpayer money be used responsibly. The spokesperson added that the government's devolution plans are designed to foster growth in all areas, leading to stronger local economies, improved public services, and greater community control.