Prime Minister Andy Burnham's initiative to transfer power from central government to local areas may result in significantly higher staffing costs for taxpayers, according to new analysis. The plan aims to 'carry power into every postcode in the land' to bolster the influence of local leaders.
However, research conducted by the TaxPayers' Alliance, a think tank, indicates that areas with directly elected mayors have experienced a notable increase in staff expenses in recent years as these authorities have assumed additional responsibilities. The analysis found that from 2019-20 to 2023-24, the number of staff earning at least £50,000 annually within six combined authorities that provided data rose by 200 percent.
For instance, in Greater Manchester, where Burnham previously served as mayor, the number of staff receiving total remuneration of £50,000 or more increased by 385 individuals, a 236 percent jump over four years. Similarly, the West Midlands saw a 175 percent increase, adding 201 staff members in the same pay bracket during that period.
The salaries for some top regional officials now exceed those of senior civil servants in Whitehall. Caroline Simpson, who leads Burnham's 'No10 North', previously earned over £240,000 annually as the chief executive of the Greater Manchester Combined Authority (GMCA), a figure higher than the £230,000 paid to the Cabinet Secretary. Katharine Hammond, chief executive of the South Yorkshire combined authority, earns £220,000 a year, surpassing the top salary at the Treasury.
The analysis also revealed that the combined staff costs for nine existing combined authorities have doubled over the past five years, reaching £341 million annually, an average increase of over 34 percent. Notable increases include the West of England Combined Authority, where staff costs surged from £4.2 million in 2020 to £20 million last year, and the West Midlands Combined Authority, whose pay bill rose from £29 million to £60 million in the same timeframe.
John O'Connell, chief executive of the TaxPayers' Alliance, expressed concern that devolution should not lead to "another expensive layer of government stuffed with highly paid officials." He suggested that if the government wishes to decentralize power, it should prioritize existing councils, cap combined authority precepts, and ensure that regional growth is balanced by a reduction in central government size.
Senior Conservative MP David Simmonds, the shadow communities minister, stated that taxpayers might face a "Burnham penalty" to cover escalating staffing costs and salaries that are higher than those for the Cabinet Secretary.
A government spokesperson commented that local authorities are independent employers responsible for setting their own wages, but emphasized the expectation that taxpayer money will be managed responsibly. The spokesperson added that the devolution plans are intended to foster growth in all areas, leading to stronger local economies, improved public services, and greater community control.