Read the Auditor General's speech [PDF 173KB Opens in new window] to the recent Welsh NHS Confederation conference.

The decision to allow certain senior officers at Pembrokeshire Council to receive payments equivalent to the employers’ pension contributions if they opt out of the Local Government Pension Scheme (LGPS) - to avoid potential tax liabilities - was ‘unlawful’. And, subsequently, payments made – so they could make their own arrangements for saving for retirement - were also contrary to law, according to the Appointed Auditor, Anthony Barrett.

His Report in the Public Interest, issued today, concludes that the decisions were unlawful on a number of grounds:

Carmarthenshire County Council acted ‘contrary to law’ by making a decision that allows senior officers to opt out of the Local Government Pension Scheme (LGPS) – to avoid potential tax liabilities – and be paid a ‘supplement’, equivalent to their pension contributions, to enable them to make their own arrangements for retirement. It also acted unlawfully when it decided to grant an indemnity to the Chief Executive to bring a libel counterclaim against an individual.

Councils in Wales have been able to meet the financial challenges so far – despite considerable pressures - but the cracks are beginning to show. In his report, published today, the Auditor General for Wales says local authorities will become increasingly reliant on having robust and appropriate arrangements in place to deliver efficiency savings, but that currently many do not have them.