North-East News
Embattled Hambleton District Council chief executive may receive £375,000 pay-off
8:00am Thursday 23rd February 2012
A LOCAL authority facing massive cuts is considering handing its award-winning chief executive a six-figure sum to step down after a falling out with councillors, The Northern Echo can reveal.
This newspaper understands Hambleton District Council, which has to find £1.65m of savings this financial year, is considering terminating the contract of chief executive Peter Simpson – a move which could leave him in line for a £375,000 golden goodbye.
Mr Simpson, who earns £125,000 a year, was sent home on paid “gardening leave” last week. At the time, the authority, which shares Mr Simpson with neighbouring Richmondshire District Council, refused to say why its chief executive had been escorted from the building.
The Northern Echo understands councillors are examining proposals that mean, in return for walking away, he could be offerered a six-figure settlement. The cost has been estimated as at least £375,000.
According to well-placed sources, Mr Simpson was placed on paid leave after his relationship with Hambleton leader Neville Huxtable and deputy leader Ron Kirk broke down. It is understood their relationship has been strained for a number of months.
Key issues included a recent senior management review led by Mr Simpson, which members at Hambleton felt had gone too far.
It is understood the management structure was also criticised in a recent peer review – a confidential report by visiting council chiefs from other local authorities.
A third issue is believed to be criticism levelled at Mr Simpson by several senior officers regarding his management style.
It is understood the comments were made during exit interviews following redundancy.
Responding to the claims yesterday, a Hambleton council spokeswoman said: “We are unable to go into more detail at the current time because of employment contractual arrangements.”
The Northern Echo contacted Mr Simpson yesterday, but he said he had been advised to remain silent for the time being.
He was escorted from Hambleton council offices in Northallerton on Friday.
The decision was apparently taken without the knowledge of senior councillors at Richmondshire council, which shares Mr Simpson as chief executive, although the officer is employed by Hambleton.
It is understood that senior Richmondshire members, unhappy that they were not consulted on the move, have advised colleagues at Hambleton that their authority would not contribute towards any pay-off.
The two authorities embarked on a shared services arrangement three years ago – a process which was led by Mr Simpson.
Councillor John Blackie last night pledged that the collaboration between the two authorities would continue.
He said plans were put in place to cover the eventuality of the joint chief executive being unavailable and these would now be implemented.
This meant deputy chief deputy chief executive Tony Clark would be temporarily in charge of Richmondshire Council until the end of May.
A number of options for the future management of the council would be discussed between now and then, Coun Blackie added.
He said Mr Simpson’s talent and competency had never been in doubt in Richmondshire, adding: “As a regional lead on the forthcoming localisation of business rates and a national lead on shared services, Peter’s services are bound to be in demand, and so I suspect his leave of absence is unlikely to be a quiet time for him.”
Earlier this week, Coun Huxtable said the decision to place Mr Simpson on gardening leave had been taken in response to “serious management issues”.
He said concerns had been raised by other members of the senior management team.
Hambleton Council has had to find £1.65m savings in the current financial year after seeing a 28 per cent decrease in its Government grant over four years.