Glasgow City Council successfully delivered £500 million project to finance equal pay settlement

06 February 2020 Share this LinkedIn
2018/19 audit of Glasgow City Council

Glasgow City Council has successfully delivered a challenging project to finance £500 million in equal pay claims.

A report by the Accounts Commission, Scotland’s local authority watchdog, says that the council developed and demonstrated good governance arrangements throughout a complex project to raise over £500 million to settle equal pay claims. This involved the council undertaking three complex deals to sell and leaseback a number of properties. The council also developed and applied appropriate project management and governance arrangements whilst assessing claims and making payments.

The Accounts Commission reports that there remain risks for the council in the future as it deals with outstanding equal pay claims, as well as possible future claims before they implement a new pay and grading structure in 2021. The council anticipate that these potential future claims are likely to be on much smaller claim than the settlements completed in 2019.

Graham Sharp, Chair of the Accounts Commission says,

“We welcome that the council successfully delivered a challenging and complex project within a short space of time, with good governance arrangements and appropriate controls to ensure equal pay settlements were accurate.”

“We strongly encourage the council to implement its new pay and grading structure by April 2021.”

Auditors will continue to assess and report on the impact of equal pay arrangements and future liabilities.