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Scotland’s local authorities have distributed £63 million in six-figure “golden goodbye” payments to high-income employees since 2022, according to new data.
The yearly financial reports of Scotland’s 32 local councils reveal the significant expense associated with high-value severance packages given to officials upon their departure.
It occurs amid increasing pressure on their finances, which has been attributed to significant rises in council tax fees for the current financial year.
Expenditure on the profitable packages has increased from £12.6 million in 2022/23 to £21.9 million in 2024/25.
The largest bill since 2022 amounted to £15.4 million in North Lanarkshire Council, followed by £11.3 million atGlasgow City Council.
Scottish Conservative party’s finance and local government spokesperson, Craig Hoy, stated: ‘Diligent Scots who have been affected by increasing council taxes will be angry that councils have spent millions on farewell packages.’
Our local services are nearing their limit, yet rather than addressing the real problems, council leaders are letting the cost of public-sector payments increase significantly.
Taxpayers are tired of SNP and Labour-led councils allocating funds to inappropriate areas while our essential services are struggling.
The information, gathered by the Scottish Conservatives from the yearly financial reports of local councils, indicates that the overall expenditure on exit packages exceeding £100,000 since 2022 has reached £62.6 million.
The price of the packages increased from £12.64 million in 2022/23 to £28.09 million in 2023/24, followed by a decrease to £21.89 million in 2024/25.
Over the course of three years, North Lanarkshire allocated £15.38 million, Glasgow spent £11.25 million, and Renfrewshire used £7.92 million.
Multiple councils – Clackmannanshire, East Ayrshire, Midlothian, Orkney, Shetland, South Lanarkshire and West Lothian – did not provide any six-figure exit packages, as per the information.
In September, Audit Scotland released a report criticizing Glasgow City Council for substantial early retirement and redundancy payments given to five senior officials.
It emerged that the five senior individuals departed with exit packages, unbeknownst to SNP council leader Susan Aitken, including former chief executive Annemarie O’Donnell, who was given a £357,845 ‘in year’ payment towards her pension.
Elaine Galletly, ex-director of legal and administration, was given a £223,065 pension payment and £59,971 as ‘compensation for leaving her position’.
Audit Scotland discovered that the restructuring plans seemed to have been endorsed by certain individuals who had personal gains. It also mentioned that the lack of independent review by council members and formal records, including information on how decisions were taken and proof of cost-effectiveness, was ‘very worrying’.
A representative from Glasgow City Council stated, “The council has strong procedures and monitoring systems in place concerning all exit payments for employees.”
Significant changes in governance have been extensively shared this year.
A representative from North Lanarkshire Council stated: ‘The reorganization of senior management has resulted in continuous annual savings exceeding £600,000 since 2018, highlighting our dedication to efficiency and cost-effectiveness.’
Describing exit packages as “golden goodbyes” is entirely deceptive since these payments are not directly given to individuals, with most funds directed towards the pension fund, and approximately 40% determined through hypothetical calculations instead of real cash disbursements.
Employees have been part of the pension scheme during their working years and are eligible for their legally mandated benefits under pension rules, similar to other employees.
These are mandatory requirements, not optional rewards, and have been handled according to the policy approved by the council.
Our reorganisation has resulted in a more streamlined and effective organisation, providing improved value for residents of North Lanarkshire while fulfilling our legal and contractual responsibilities to staff.
The Scottish Joint Negotiating Committee (SJNC), composed of senior officials, handles the salary discussions for the top executives of Scottish local councils on a national level via the Cosla, which serves as the representative body for councils.
A representative from the Scottish Government stated: ‘It is the responsibility of each local council to handle their financial planning and determine the terms and conditions for their employees.’
The Scottish Government acknowledges the autonomy of Local Government. Nevertheless, we anticipate that all councils will make choices that fulfill their duty to achieve cost-effectiveness.
Read more
- Why are executives in Scottish councils expected to get extraordinary salary increases while council tax bills are rising sharply?
- How might Scotland’s council “golden goodbyes” affect tax-supported resources as public discontent grows?
- Does the Scottish Parliament’s ‘golden goodbye’ policy impose a financial strain on taxpayers, with £1.7 million distributed to outgoing SNP MSPs?
- Are expensive ‘golden exits’ causing public anger as Glasgow cuts vital public services under SNP leadership?
- Are the so-called ‘fat cats’ in Scotland’s public sector earning huge daily salaries even under pressure to manage expenses?