Bath and North East Somerset Council’s ambitious pay and grading review, initially aimed at saving £2.5 million in the last financial year, has instead increased salary costs by £1.7 million, resulting in a shortfall of £4.2 million against planned savings.
Mark Elliott, the council’s Cabinet Member for Resources, explained to a scrutiny committee on July 21 that the review involved a comprehensive benchmarking exercise of staff salaries. “We predicted savings, but the outcome required substantial pay increases for many employees,” Elliott said. “I’m proud that 60% of our staff received pay rises following the review. However, with hindsight, better upfront forecasting would have helped manage expectations.”
Scrutiny panel members expressed concerns over the programme’s management. Colin Blackburn (Westmoreland, Independent) described the pay review as “badly managed,” criticizing the unrealistic savings projections and lack of transparency. Councillor Joanna Wright (Lambridge, Green) echoed this sentiment, noting the initiative was “optimistically budgeted and poorly planned,” and emphasized the need for clear explanations regarding the overspend.
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The pay regrading formed part of the council’s multi-year “Being Our Best” (BOB) programme, designed to enhance service delivery through organisational reforms, including reducing duplicated roles and improving department collaboration. Elliott pointed out that over £2 million in savings from BOB are still expected to be realised.
Despite financial challenges such as rising children’s care costs and reduced tourism due to global instability, the council ended the 2025/26 fiscal year only one percent over budget. Elliott described this as “a genuinely creditable performance” under the circumstances.
The scrutiny panel has requested a detailed report on the Being Our Best programme for an upcoming meeting to assess progress and financial impact.