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Taxpayer watchdog attacks "unjustified" golden goodbyes

PUBLISHED: 09:53 12 September 2012

"Golden goodbyes" for former employees of Tower Hamlets council have been branded "unjustified" by the Chief Executive of the Taxpayers' Alliance.

Last week, The Advertiser revealed that Tower Hamlets made a payout to a senior figure amounting to £249,000. In total, the council made five payouts of at least £100,000 each to staff - despite its continued drive to save £90m over four years.

The Taxpayers’ Alliance has since responded to the revelations.

Matthew Sinclair, the group’s chief executive, said: “Tower Hamlets Council have a history of making huge redundancy pay-outs.

“Local authorities need to scrap the contracts which lead to these six-figure deals as they are often terrible value for taxpayers’ money and are especially unjustified in the current economic climate.”

A council spokeswoman confirmed the payouts were made as a result of redundancies, and that the posts have not been refilled.

“Over the last two years the Council has delivered savings of over £60m while preserving frontline services”, she added. “In most instances, the cost of redundancy is more than recouped through staff salary savings within a year of payments being made.”

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