“If the Council were a private company with the same turnover, then I am sure the CEO pay would be on ten times that.”
And I’m sure you’re wrong. I cannot imagine a company with a £261m turnover (and a profit of probably only 10% of that) paying its CEO £2m. (Compare the package of Gavin Patterson, CEO of BT, turnover £18 billion– some 70 times the turnover of the council - profit around £2bn. He took about £4m last year).
However, there ends any meaningful comparison (such that it was). A company CEO is answerable to the company’s shareholders. He (or she, so won’t keep repeating it) has to do many things a local council “CEO” does not. Among the most important, for the purposes of this argument and your comparison are these: he has to ensure the business retains and maintains its customers; he has to ensure customer satisfaction; he has to retain and grow the company’s income stream; he has to secure new custom to grow revenue and profit so as to maintain shareholder value.
The boss of a local council has to do none of this. He (or she) has a guaranteed income stream (80% from central taxation, 20% from Council Taxpayers secured under threat of criminal prosecution). He cares not whether he has one or a hundred thousand customers (and in fact many of them would prefer to have fewer). He has no need to keep them happy. He has no need to secure new customers. He has no need to ensure a profit is made.
In short, the comparison is specious. People don’t have to go to Sainsbury’s for their shopping. They don’t have to use BT for the telecom requirements. They don’t have to use EasyJet to fly abroad. They don’t have to buy a Ford motor car. The job of the CEO of those companies is to make sure that they want to. By contrast most people have little choice but to use the services the local council provides (and even if they don’t use them they still have to pay for them).
So back to the question. There is no doubt that the salaries and benefits provided to senior local council staff are ridiculous. It is always argued that these sums must be paid to secure the best people. If, as Gromit suggests, considerably higher salaries can be earned by these people, if they have the talents and skills to do so, why don’t they become CEO’s of “proper” companies. (Answers on a postcard please, but the correct answer is that they would not last five minutes in the real world). Instead they move from job to job among local councils, each move providing them with a handsome payoff and a generous “relocation” allowance (effectively enabling them to buy a bigger house courtesy of the taxpayers' largesse).
Similarly there is no doubt that many of the mid-range jobs (£30-£60k) are total “non-jobs”. You only have to look through the Guardian situations vacant pages to see them. These are jobs which would never be funded in the private sector because they are simply unnecessary. Local government needs radical overhaul (in my view it should be abolished entirely and the services provided either taken under central government control, or put to private tender). Until that happens this scandalous waste of taxpayers’ money will go on.