Item 11 - Accounts Commission Report - Audit of Glasgow City Council Senior Officer Exit Packages
West Dunbartonshire Council · 10 December 2025
Back to Audit Committee — 10 December 2025 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer - People & Technology Audit Committee - 10 December 2025 ___________________________________________________________________ Subject: Accounts Commission Report - Audit of Glasgow City Council senior officer exit packages 1. Purpose 1.1 The purpose of this report is to detail West Dunbartonshire Council’s (the Council) response to the recommendations arising from a recent Controller of Audit’s report to the Accounts Commission on governance and transparency of decision making of exit packages of senior officers in Glasgow City Council. 2. Recommendations 2.1 Note the Council’s responses to each recommendation in the Accounts Commission letter 2.2 Agree that the current approach to the governance of exit packages, in particular those involving senior officers, is sufficient. 2.3 Agree that the Council’s Scheme of Delegation should be subject to review. 2.4 Note the revisions to the Code of Conduct as set out in paragraph 4.7. 3. Background 3.1 The release of 5 senior officers at Glasgow City Council, including the Chief Executive, allowing access to unreduced pension benefits resulted in a report from the Controller of Audit in relation to the scrutiny, governance and transparency of decision making of exit packages of senior officers in Glasgow City Council. The Accounts Commission considered its options in respect of the powers available and consequently published findings. While the report related to specific issues at Glasgow City Council there is an expectation that all Councils consider the issues highlighted by the report and discuss these at their respective Audit Committee. There is a further expectation that steps will be taken to review the Scheme of Delegation and decision-making processes connected with the release of officers. 3.2 The Accounts Commission letter to all Councils is attached as Appendix 1, with the full report on the 2023/2024 audit of Glasgow City Council available as Appendix 2. 4. Main Issues Item 11
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Learning from the audit 4.1 The report highlights many of the same areas arising from earlier reports produced by the Accounts Commission including the December 1997 report and subsequent follow-up review about the management of early retirement. These were: Bye now, pay later? The management of early retirement in local government and Bye now, pay later? A follow-up review of the management of early retirement, published in June 2003. 4.2 Officers have reviewed the key recommendations documented in the report and Appendix 1 and are comfortable the Council’s current approach satisfies the Accounts Commission’s expectations. The undernoted confirms the Council’s position in relation to each of the five recommendations. 4.2.1 Recommendation 1 - Frameworks for decision-making: policies in relation to the exit packages of senior officers should be approved by councillors and reviewed regularly. Response: the discretions available to employers under the Local Government Pension Scheme (Scotland) Regulations 2018, are reviewed regularly with approval secured via Corporate Services Committee. Following notification of changes from Strathclyde Pension Fund Office, a report has been submitted to the meeting of Corporate Services Committee on 12th November 2025, notifying the revised schedule of discretions as applied by the Council. 4.2.2 Recommendation 2 - Informing councillors: councillors should receive a report at least annually that details the number of early retirals, and redundancy decisions made in the year, along with the associated costs and savings attached to these decisions. Response: details of early retirements, costs and savings are submitted to Corporate Services Committee annually as part of the ‘Workforce Planning and Monitoring Report’. This was last presented to committee in May 2025. 4.2.3 Recommendation 3 - Decision-making: councils should rigorously appraise individual business cases to ensure the expected savings associated with a retiral or redundancy outweigh the costs, ensuring value for money. Response: the Council have a cost benefit analysis (CBA) process linked to the ‘switch policy’ and HR guidance on application. The CBA requires a robust business case with payback generally within 2 years (aligned to Scottish Government Public Sector Pay Policy although not directly applicable to local authorities) and demonstrating value for money. These must be approved by the service chief officer/HSCP head of service; Chief Officers People & Technology and Resources, before being finally considered by the Chief Executive. Approved CBAs are retained in personnel files and by finance to ensure robust cost and saving reconciliation. 4.2.4 Recommendation 4 - To improve accountability and assist in monitoring, the costs of early retirement should be charged to the appropriate service budget.
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Response: costs and savings are held against the relevant council/HSCP central cost centre enabling the robust holistic reconciliation referred to in paragraph 4.2.3. 4.2.5 Recommendation 5 - Elected members should be involved in approving early retirement and redundancy decisions for senior staff, providing the independent scrutiny that is essential to issues and decisions where there are potential conflicts of interest. Response: senior level restructures, including any early retirements/voluntary severance are reported to the Council’s Recruitment and Individual Performance Committee for confirmation of proposals. Several senior officer posts have been deleted since 2016 as a result of restructuring which requires the deletion of the posts and work merged with another role and delivered in a different way. We do not routinely use fixed term contracts at this level (in recognition of recommendations from the earlier audit reports). Scheme of Delegation 4.3 The Council’s scheme of delegation was last reviewed in 2021 following a previous senior restructure. Based upon the expectations of the Audit Commission and the changes made to the Council’s senior team following the 2024 restructure it is recognised that the scheme of delegation requires to be reviewed. The information for the review has been gathered and the revised Scheme will be shared with Chief Officers to ensure it picks up any changes since the information gathering stage. It will then be submitted for approval in accordance with the provisions of Paragraph 2.4 of the Scheme of Delegation. 4.4 The current scheme includes the following provision which is sufficient and does not require amendment to facilitate the recommendations of the report . “The Chief Executive is the Leader of the Senior Leadership Group and has management responsibility for all Council employees. Without prejudice to the foregoing generality the Chief Executive’s powers, duties and responsibilities include the following: 10. To consider requests for voluntary early retirement or severance. 14. If a decision which is not delegated to officers requires to be made urgently between meetings of the Council or relevant Committee, the Chief Executive, in consultation (i) with the Provost or Leader of the Council as appropriate, and (ii) the Convener of the relevant Committee, may take action, subject to the matter being reported to the next meeting of the Council or relevant Committee.” 4.5 As stated in paragraph 4.2.5 above, restructures involving senior officers are remitted to the Recruitment and Individual Performance Committee and this would include changes at Chief Executive level. However, given the statutory requirement to appoint a Head of Paid Service in terms of Section 4 of the Local Government and Housing Act 1989, it would be unusual to allow the early retirement of this post-holder with access to unreduced pension benefits,
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with (strain on the fund) cost to the authority, inconsistent with best value principles as the payback principles are unlikely to be met. Key Principles of Public Life in Scotland 4.6 The Council’s Code of Conduct, most recently reviewed in November 2020, reflects the key principles in Section 2 and as such, are a cornerstone of the culture relevant to all officers. 4.7 However, the code omitted the additional principles of duty and respect, added by Scottish Government for public sector bodies in Scotland. This technical change has now been agreed with trade union colleagues without further recourse to committee in accordance with policy framework. 5. People Implications 5.1 There are no direct people implications arising from this report. 6. Financial and Procurement Implications 6.1 There are no direct financial or procurement implications arising from the report, other than those reported linked to any early retirements/voluntary severance situations. 7. Risk Analysis 7.1 There could be reputational risks associated with any decision to release employees which result in unreduced pension access, associated costs depending on which option is approved and a lack of robust justification. 7.2 The Council’s approach to early release in such circumstances mitigates the risks associated with these types of decisions. 8. Equalities Impact Assessment (EIA) 8.1 An Equality Impact Assessment was not required for the purposes of this report as it simply notes the content of the report and the safeguards already in place in the Council. 9. Consultation 9.1 The Trade Unions were advised of the audit report and the Council’s response at the meeting on 16 September 2025. 9.2 Colleagues in finance, legal, and HR were involved in the preparation of the report. 10. Strategic Assessment
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10.1 This proposal aligns with the Council’s strategic objective of delivering efficient and cost-effective services, contributing to its priority of being a “continuously improving Council delivering best value.” Victoria Rogers Chief Officer People & Technology Date: 11 November 2025 Person to contact: Victoria Rogers, Chief Officer People & Technology Appendix: Appendix 1 – Accounts Commission Letter to Councils Appendix 2 – Audit of Glasgow City Council, senior officer exit packages Background Papers: None Wards Affected: All
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