The Audit Commission has been asked to review the regulations governing severance payments to senior council staff and their subsequent re-employment in other local authorities.
John Denham, the Communities Secretary, has talked of 'boomerang bosses'. His department asked the Commission 'to assess practices and procedures'.
District auditors examine any large settlements for top staff who are sacked or agree early retirement, and report in the public interest if they feel it necessary. They also call any anomalies or questions to the attention of councillors.
In a report last summer, the Commission noted council chief executives' salaries had risen by a third between 2003/04 and 2007/08. The report, Tougher at the top?, said turnover rates had been growing. Councils were making more appointments from other local authorities - even though chief executives from outside performed no better than (cheaper) appointments from inside the same council.
Michael O'Higgins, the Chairman of the Commission, said: 'The evidence from recent years is that higher rates of recruitment of existing chief executives led to increased turnover rates, additional recruitment costs and wage inflation. Auditors already closely examine pay-offs.'
'We will look at the regulations in the light of our study and what district auditors report.'
Announcing his request to the Commission, Mr Denham said: 'It's not acceptable for town hall chiefs and council leaders to agree expensive deals to part company just because they don't get on or because they'd prefer to work with someone else.'
'If a chief executive, who has served his or her administration well, leaves for no justifiable reasons it does not mean a council should spend large amounts of taxpayers' money just to move them on to the next council so they can then find a more favoured face.'
Notes for editors
- The Audit Commission is an independent watchdog, driving economy, efficiency and effectiveness in local public services to deliver better outcomes for everyone.
- Our work across local government, health, housing, community safety and fire and rescue services means that we have a unique perspective. We promote value for money for taxpayers, auditing the £200 billion spent by 11,000 local public bodies.
- As a force for improvement, we work in partnership to assess local public services and make practical recommendations for promoting a better quality of life for local people.
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