Main Members Allowances

1. Introduction

1.1 This booklet is intended to provide general guidance on the allowances available to Members of Allerdale Borough Council based on the current Scheme approved by Council on the 13 December 2006.

1.2 The guidance is not intended to be comprehensive and will not therefore cover every conceivable circumstance. Individual cases may need to be interpreted with reference to the relevant statutory provisions.

1.3 A Member may by notice in writing given to the Director of Finance elect to forego any part of his/her entitlement to an allowance under the Council’s Scheme.

1.4 Enquiries regarding payment of allowances should be addressed in the first instance to the Democratic Services Department at Allerdale House, Workington, (Tel: 01900 702561).

2. Remuneration Allowances

2.1 The payment of remuneration allowances for Members are subject to statutory regulation. The Council’s Scheme provides for the following three allowances:

(i) Basic Allowance

Basic Allowance which is payable to all Members as a standard payment is intended to recognise the time Members devote to their role as a Councillor, including such inevitable calls on their time as meetings with constituents and political group meetings and also to cover incidental costs, such as use of their homes, for which no other provision is made. The amount of Basic Allowance for a full year is specified in Appendix ‘A’ of the Scheme. Part year entitlements (for those who become or cease to be Members during the year), are calculated pro rata on a daily basis.

(ii) Special Responsibility Allowance

The Council provides for Special Responsibility Allowances for Councillors who have special responsibilities in relation to the Council’s functions such as, Leader of the Council, Executive member, Chairman of a Committee or Leader of a Minority Group.

-1- Where there is more than one Political Group at least one Special Responsibility Allowance must be made available to a Councillor of a Minority Group.

The current list of approved Special Responsibility Allowances are listed in Schedule 1 of the Scheme. Part year entitlements (for those assuming or relinquishing a position of special responsibility during the year) are calculated pro rata on a daily basis.

2.2 The Council is required to publish annually the total sum paid to each Councillor in respect of Basic, Attendance and Special Responsibility Allowances paid in each financial year.

3. Travel and Subsistence Allowances

Rates of Travel and Subsistence Expense Allowances are prescribed annually by the Independent Panel and are paid in accordance with the Local Authorities (Members Allowances) (England) Regulations 2003.

Travel and subsistence allowances must (except in exceptional circumstances) be authorised prior to the expense being incurred. Details of the current rates are available on the back of expense forms and on the Democratic Services Document Store on the Intranet.

3.2 Travelling Allowances

(a) The normal rates of allowance are bus fare, second class rail fare, bicycle or the rate(s) determined by the Council for travel by private car, subject to the maximum amounts determined by the Council.

(b) Travel expenses for public transport include taxicabs. The rate of travel by taxicab must not exceed:

(i) In the cases of urgency or where no public transport is reasonably available, the actual amount of the fare and

(ii) In any other case the amount of the fare for travel by appropriate public transport.

(c) The Scheme allows for travel by a hired motor vehicle. The rate of travel by a hired motor vehicle other than a taxicab must not exceed the actual cost of hiring the motor vehicle.

-2- (d) The Chief Executive or an Officer acting with his written authority is empowered to authorise first class travel by Councillors and/or staff of the Council in appropriate circumstances in consultation with the Leader of the Council.

(e) In all instances, Travelling Allowances may be claimed only where the relevant expense has been incurred. For example, a Councillor travelling in another Councillor or member of staff’s car is not entitled to claim Travelling Allowance.

(f) Travelling Allowance is normally payable on the basis that the Councillor starts and finishes the journey at home.

(g) All business mileage will be reported to the Inland Revenue at the end of the tax year, which may result in a tax liability.

3.3Subsistence Allowance

(a) Subsistence Allowance follows a complicated timetable with various entitlements arising from absences from home. Subsistence Allowance is intended to reimburse expenses on meals and accommodation necessarily incurred by Councillors in the performance of approved and other official duties. The rates of Subsistence Allowance are determined by the Council, and are aligned to those paid to staff.

(b) Subsistence Allowance can be claimed only in circumstances were expenditure on subsistence has actually been incurred.

(c) Rates of Subsistence Allowance are related to the duration on the relevant duty or duties, which includes time necessarily incurred in travelling between home and the place where the duty is performed. If the actual journey does not start and finish at home, the allowance claimable is normally limited to the amount, which could have been claimed had the journey started and finished at home.

(d) The reasonable cost of the meals (including VAT) will be reimbursed in full, within the limits specified below. Receipts should be retained in respect of any meals. The limitation on reimbursement are:

-3- (i) For breakfast, an absence of more than 4 hours before 11.00 am;

(ii) For lunch, an absence of more than 4 hours, including the period between 12 noon and 2:00 pm;

(iii) For dinner, an absence of more than 4 hours, ending after 7:00 pm.

(e) Where a meal is provided free of charge, there is no entitlement to subsistence.

(f) Councillors are normally expected to meet subsistence expenses from their own pockets and then claim the relevant allowances in accordance with the procedure described in Section 6.

(g) Duties involving overnight accommodation, it is usually possible for the establishment concerned to invoice the Council direct for accommodation costs. However, such costs must still be recorded on claim forms clearing stating that the expenses have been paid directly by the Council.

4. Telephone Allowance

4.1 The costs of the telephone allowances are included within the Basic Allowance payable to each Councillor.

5. Categories of Official Duties

5.1 Councillors are called upon to undertake a wide range of different activities. It is therefore important to understand the different categories of duties that exist, since the entitlement to allowances varies according to the category of duties undertaken.

5.2 The most common category is ‘Approved Duties’, but this term can be misleading since it does not include all duties approved by the Council. It applies only to the duties referred to in paragraph 2.1(ii) above and defined precisely in Schedule 2 of the Scheme. A Councillor undertaking an Approved Duty is entitled to claim Travelling Allowance and

-4- Subsistence Allowance, subject to complying with the various conditions explained in the relevant sections of this document.

5.3 Attendance at Conferences and ad hoc meetings cannot be classified as an Approved Duty. However, provided that such attendance has been approved in advance by the Chair of the Councillors Working Group as appropriate it qualifies for payment of Travelling Allowance and Subsistence Allowance.

5.4 What might be termed constituency duties (eg attendance at parish/town council meetings or dealing with complaints, problems, queries etc raised by members of the public) and party political activities (eg group meetings) are deemed to be met by the Basic Allowance. No other allowances may be claimed in respect of such activities, irrespective of the amount of time spent on them.

5.5 Duties undertaken in the capacity of a Group Leader, Executive members, Committee Chairman etc are covered by the Special Responsibility Allowance Scheme.

5.6 The final category is civic duties ie receiving official visits, attending official functions etc of a ceremonial or courtesy nature having no direct connection with the Council’s statutory functions. These duties are normally undertaken by the Mayor or Deputy Mayor of the Council who are entitled to receive Special Allowances under statutory provisions, which do not apply to other Councillors. The Mayor and Deputy Mayor each receive an annual allowance. The allowances paid to the Mayor and Deputy Mayor are £6,250 and £444 respectively (these allowances are decided under different legislation to other allowances and are therefore not part of the independent panel report). Any other Councillor attending such a function (whether in place of or in addition to the Mayor and/or Deputy Mayor of the Council) with the Council’s approval is entitled to claim only Travelling Allowance and Subsistence Allowance, as appropriate in respect of such attendance.

6. Claims and Payments

6.1 Each Councillor’s annual entitlement to Basic Allowance and, where appropriate, Special Responsibility Allowance is paid automatically by 12 equal monthly instalments, unless the Councillors has renounced in writing all or part of the allowance(s) to which they are entitled. A Councillor who wishes to receive no Basic or Special Responsibility Allowance or lesser amount than the full entitlement must write to the

-5- Director of Finance stating the amount, if any, they wish to receive. That amount will continue to be paid unless and until further written notice is given that the amount is to be amended.

6.2 Where Travelling Allowance and Subsistence Allowance are concerned, no payment will be made unless the relevant amount is claimed on an official claim form duly completed and signed by the claimant. The amounts claimed must not exceed, but may be less than, the relevant rates of allowance approved by the Council. The relevant rates of allowances are those current on the day the duty is performed. Any amounts already paid by the Council or received from any other source must be deducted to arrive at the net amount claimed.

6.3 It is the Councillors individual responsibility to record details of duties performed and to complete the relevant claim form. As regards attendance at meetings of the Council, its Committees, Panels, Task Groups and Sub Committees, the attendance list is the definitive record of the Councillor’s presence or absence. Councillors must not ask any other person, including any Officer of the Council, to make an entry on their behalf.

Where forms are found to be incorrect or incomplete, other than minor arithmetical errors, they will be returned to Councillors for amendment.

6.4 To facilitate budgetary control claims should be submitted monthly after the first date to which the claim relates. Payment of allowances is made once each month on the 25th of the month (or last banking day before the 25th) and comprises any Basic and Special Responsibility Allowance to which each Councillor is entitled plus Travelling and Subsistence Allowances claimed on a duly completed claim form received in the Committee Section no later than the 7th of the month.

6.5 At the end of each financial year end claims should only be made up to the 31 March. Claims for the new financial year should be submitted on a separate form.

6.6 Payment will be made by electronic fund transfer to a bank account nominated by the claimant and a pay advice is forwarded by post. Claimants should notify the Director of Finance immediately if they change their bank account, otherwise payment may be delayed.

7. Income Tax on Allowances

-6- 7.1 Allowances are taxed under Schedule E. Deductions will be made from Basic, Special Responsibility and Conference Attendance Allowances in accordance with the Councillors’ tax code: Tax Code B.R. means that tax will be deducted at the basic rate, a Councillor will then be able to claim tax allowances from the Inland Revenue in respect of expenses incurred.

7.2 In determining the liability to tax, allowances will be made for expenses agreed between the Councillor and the Inland Revenue. 7.3 Councillors should take up the question of allowable expenses with their Inspector of Taxes.

7.4 All taxation matters relating to Allowances are centred at Whitehaven and any queries should be referred to the following address, quoting tax reference number 783/AP782.

Inland Revenue West Cumbria Blencathra House Queens Dock Tangier Street WHITEHAVEN Cumbria CA28 7UX

Tel No: 01946 – 514300

7.5 Income Tax On Mileage

All business miles will be reported to the Inland Revenue at the end of the tax year and may incur a tax liability.

7.6 Insurance

Use of your own vehicle on Council business will probably not be classed as "social, domestic and pleasure" and you will therefore need to have business use on your motor insurance policy. We would advise you to contact your insurers to ensure that your insurance policy provides cover while on Council business. Democratic Services must be provided with a copy of your certificate of motor insurance. This is consistent with officers vehicles used on authority business

When driving a car hired for you by the Council, insurance cover for the vehicle is arranged by the Council. This insurance cover, however, may be invalidated, if the insurers are not aware of convictions on your licence, or anything else which may have resulted in the terms of the insurance being

-7- amended. To prevent such a situation arising it is a requirement of the Council’s Driving at Work policy that all Officers Employees and Members report:-

 any driving convictions/endorsements or disqualification from driving.

 the development of any health problem which may limit or prevent driving.

 any accidents you may have whist driving yourself.

Any reports should be made to the Democratic Services Manager on 01900 702561 who will advise the Risk Management and Insurance Officer.

The Council’s driving at Work policy can be found on the Health and Safety web pages on the intranet. http://intranet/documents/corporate%20health%20&%20safety/Corporate %20procedures/drivingatworkpolicy.pdf

If you have any further queries concerning motor insurance please contact Peter Wiseman the Council’s Risk Management and Insurance Officer on 01900 702584 or email [email protected]