ALMOST £70,000 was paid to council officers in so-called ‘golden handshakes’ last year, council documents reveal.

The figure was massively down compared to the previous financial year, when, as previously reported, Basingstoke and Deane Borough Council gave out the largest average settlement of an local authority in the country.

However, after receiving criticism from the TaxPayers’ Alliance as well as some of their own councillors, figures reveal that the authority has spent more than 80 per cent less in termination costs in 2019-20.

Figures up until the end of March this year reveal that £68,305.09 was spent by the borough council in termination costs - around half of which was settlement agreements.

Basingstoke Gazette:

The remaining half was payment in lieu of notice (PILON), where the authority pays off the notice period of the employee.

Speaking to the council’s human resources committee earlier this week, head of HR, Sarah Cragg, said that decisions were made after taking legal advice and based on the “potential risk to the organisation, financial and reputational”.

“They are the result of a negotiation process that balances the need to compensate the individuals for loss of office whilst protecting the council from future claims.

“In all of those circumstances, the amount that is paid is based on legal advice and relates directly to the level of financial risk that the council would be exposed to should the matter be brought to the employment tribunal.”

She added that all decisions to sign off on settlements were taken by a senior council officer.

However, some members on the committee asked why they were not able to understand the circumstances of the settlements being struck.

Cllr Roger Gardiner (Conservative) said: “If something was going to a tribunal and we thought we would lose so we went to a settlement, the reasons why we thought we would lose are something that this committee ought to be considering.”

Agreeing with him was Labour councillor Tony Jones, who said: “Surely as a committee if we are having these costs we should know why the costs were there?”

However, Ms Cragg said that it would be impossible for the circumstances to be discussed because they would identify the recipient of the golden handshake. She reiterated that all decisions on settlements are taken in line with council policy.

Earlier this year, council passed a motion to ensure that they must sign off any settlement that exceeds £100,000.

Cllr Ian Tilbury, leader of the Basingstoke and Deane Independents, has previously called for more accountability on termination costs.

He told The Gazette in May: “You get these stock answers that this is nothing to do with you as councillors.”

“It is lots of money and they should be accountable. If you dare to question the management...

“I think the problem is that there is a big issue when you are having to pay people a lot of money to go away,” he continued.

“What has gone on at the council in recent years has cost us a fortune, and all we know is that we have given them a lot of money.

“We don’t know why those people have gone and why they have been paid.

“This is becoming the norm. It is wrong when the council don’t even know what the problems are.”