Political editor David Bartlett on how Liverpool council’s big earners are leading from the front as the council faces a financial squeeze

BONUSES for the top level of management at Liverpool council are to be scrapped in a bid to rein in the city’s spiralling pay bill.

It comes as the Daily Post exclusively reveals the huge bonuses paid to council staff last year.

Departed finance director Phil Halsall pocketed £30,177 for just 12 days, because of a £24,000 bonus he was entitled to for work in the previous year.

Regeneration director John Kelly and children services director Stuart Smith were both paid £40,000 on top of their £160,000 salaries.

Former chief executive Colin Hilton, who took early retirement last month with a £350,000 pay-off, earned £230,000 in 2009 including a £25,000 bonus.

Former Capital of Culture director Kris Donaldson was paid £67,000 for two months work, which included a £41,000 payment for “loss of employment”.

In 2008 he was paid a bonus of £42,000 on top of his £153,000 salary.

Collectively the top 10 earners took home bonuses of £230,000 – up from £129,000 in 2008.

Now the city’s seven-strong executive management team have voluntarily agreed to completely give up the huge bonuses after coming under pressure from council leader Joe Anderson.

The measure will save £150,000-a-year – the executive management team had already agreed to have them cut by a third as part of this year’s budget savings.

Cllr Anderson, who persuaded the top brass to give up the bonuses, said it was important that the council’s big earners led from the front when the council was being squeezed financially.

Cllr Anderson had been critical of the levels of pay at the local authority ahead of becoming council leader in May.

He said: “We promised that we would make it a priority to tackle the issue of big bonuses.

“I have been concerned for some time about executive pay in the city council, and am pleased that our most senior staff have volunteered to give up their bonuses.

“Local government budgets are going to be significantly reduced over the next few years, which means difficult decisions around jobs and services.

“It is only right and proper that people at the top in local government who earn significant sums lead by example and make their own personal contribution to reducing the council’s costs.

“I accept the need to pay the going rate to attract and retain talented managers, but I do feel strongly that those in very senior positions should not have to be incentivised to do a good job. Serving the public of Liverpool is privilege enough.”