Agenda item

White Paper Motion (in the name of Councillor Lamb) - Private Service Companies

This Council notes with strong concern recent examples of senior Leeds City Council staff being paid via private service companies and commits to bringing this practice to an immediate end.

 

This Council believes that the recent Government consultation, ‘Taxation of Controlling Persons’, sets a clear approach to this issue and further believes that both morally and in the interest of fairness the Council should fully support the proposals in the consultation.

 

This Council commits to developing a clear policy that will create a strong framework for the future appointment of all senior members of staff and further commits to developing this as quickly as possible and through the submission of a report to the Executive Board.

 

Council further requests that the Scrutiny Board for Resources and Council Services monitors this issue as part of their ongoing work programme.

 

A LAMB

Minutes:

It was moved by Councillor Lamb, seconded by Councillor G Latty that this Council notes with strong concern recent examples of senior Leeds City Council staff being paid via private service companies and commits to bringing this practice to an immediate end.

 

This Council believes that the recent Government consultation, ‘Taxation of Controlling Persons’, sets a clear approach to this issue and further believes that both morally and in the interest of fairness the Council should fully support the proposals in the consultation.

 

This Council commits to developing a clear policy that will create a strong framework for the future appointment of all senior members of staff and further commits to developing this as quickly as possible and through the submission of a report to the Executive Board.

 

Council further requests that the Scrutiny Board for Resources and Council Services monitors this issue as part of their ongoing work programme.

 

An amendment was moved by Councillor Wakefield, seconded by Councillor Groves that this Council notes with strong concern recent examples of senior Leeds City Council staff being paid via private service companies and commits to bringing this practice to an immediate end.

 

Delete the second paragraph and replace with the following 3 paragraphs:-

 

‘This Council welcomes in principle many of the proposals which are included in the recent ‘Taxation of Controlling Persons’ consultation.  Council further acknowledges that this issue affects all aspects of the public sector and notes with concern that 2,400 staff have been identified as being paid off the pay-roll within the Civil Service.

 

Council recognises the positive steps that have already been taken within Leeds City Council to end this practice, and notes that by the end of November the number of people being paid this way will have been completely reduced from 5 to 0.

 

Given the complexity of implications arising from new legislation, Council requests that officers seek clarity as to whether better enforcement of IR35 legislation could be a quicker and more cost effective way of achieving transparency in relation to the taxation arrangements for controlling persons.’ 

 

Retain the final two paragraphs:-

 

‘This Council underlines its commitment to continuing work on a policy to further strengthen the framework when appointing senior members of staff.  Council resolves to bring a report to the Executive Board as soon as possible outlining the details.

 

Council further requests that the Scrutiny Board for Resources and Council Services monitors this issue as part of their ongoing work programme.’

 

Motion would read:-

 

That this Council notes with strong concern recent examples of senior Leeds City Council staff being paid via private service companies and commits to bringing this practice to an immediate end.

 

This Council welcomes in principle many of the proposals which are included in the recent ‘Taxation of Controlling Persons’ consultation.  Council further acknowledges that this issue affects all aspects of the public sector and notes with concern that 2,400 staff have been identified as being paid off the pay-roll within the Civil Service.

 

Council recognises the positive steps that have already been taken within Leeds City Council to end this practice, and notes that by the end of November the number of people being paid this way will have been completely reduced from 5 to 0.

 

Given the complexity of implications arising from new legislation, Council requests that officers seek clarity as to whether better enforcement of IR35 legislation could be a quicker and more cost effective way of achieving transparency in relation to the taxation arrangements for controlling persons.’ 

 

‘This Council underlines its commitment to continuing work on a policy to further strengthen the framework when appointing senior members of staff.  Council resolves to bring a report to the Executive Board as soon as possible outlining the details.

 

Council further requests that the Scrutiny Board for Resources and Council Services monitors this issue as part of their ongoing work programme.’

 

The amendment in the name of Councillor Wakefield was carried, and upon being put as the substantive motion, it was

 

RESOLVED – That this Council notes with strong concern recent examples of senior Leeds City Council staff being paid via private service companies and commits to bringing this practice to an immediate end.

 

This Council welcomes in principle many of the proposals which are included in the recent ‘Taxation of Controlling Persons’ consultation.  Council further acknowledges that this issue affects all aspects of the public sector and notes with concern that 2,400 staff have been identified as being paid off the pay-roll within the Civil Service.

 

Council recognises the positive steps that have already been taken within Leeds City Council to end this practice, and notes that by the end of November the number of people being paid this way will have been completely reduced from 5 to 0.

 

Given the complexity of implications arising from new legislation, Council requests that officers seek clarity as to whether better enforcement of IR35 legislation could be a quicker and more cost effective way of achieving transparency in relation to the taxation arrangements for controlling persons.’ 

 

‘This Council underlines its commitment to continuing work on a policy to further strengthen the framework when appointing senior members of staff.  Council resolves to bring a report to the Executive Board as soon as possible outlining the details.

 

Council further requests that the Scrutiny Board for Resources and Council Services monitors this issue as part of their ongoing work programme.