Liberal Democrats write to council chief over equal pay concerns

Following the concerning recent news about Birmingham City Council – which faces government intervention following financial difficulties relating to ‘Equal Pay’ policy – Liberal Democrat councillors have written to Oldham Council Chief Executive Harry Catherall seeking an update on Oldham’s financial position.

In a letter to Mr Catherall, Oldham Liberal Democrat Leader councillor Howard Sykes MBE said, “You will be aware of reports that at least 26 English councils are at serious financial risk.  Most recently, Birmingham City Council have issued a section 114 notice (meaning a council cannot authorise any further spending), with ‘Equal Pay’ disputes cited amongst the reasons for failure.”

“I therefore write to ask for an update on Oldham’s current financial position, especially as relates to the issues that surround Equal Pay, its impact on council finances; and the pressures facing the care sector.”

Councils across the country face mounting financial pressure, with research conducted by the Special Interest Group for Municipal Authorities (Sigoma) indicating that at least 26 English councils are at serious risk of following Birmingham into financial special measures. 

Inflationary pressures and related pay rises, as well as rising demands across the care sector are continually cited as prominent contributing factors by councils who are at high risk.

Councillor Sykes said, “After a decade and a half of cutbacks, councils have been forced to outsource many vital services to contractors.  We need to be sure that Oldham is not left vulnerable to any financial liabilities our partner organisations might have incurred, whether it is in relation to equal pay disputes, as was the case in Birmingham, or anything else that represents a risk.”