Equal pay claim is 'most significant' finance issue at Southampton

Cllr Simon Letts said Southampton City Council was in a “complex legal negotiation” with a variety of parties.

The council’s exceptional financial support of up to £121.6million from government for the current financial year included an ability to borrow up to £52million to cover a potential equal pay claim liability.

The situation was previously described as an “unintended consequence” of different working practices that have been in place across the authority for a number of years.

Cllr Letts, Labour deputy council leader and cabinet member for finance and corporate services, was asked if he could provide an update at an overview and scrutiny management committee meeting on Thursday, October 24.

He said there was due to be a briefing for cabinet members and directors on the “complex” issue in the coming weeks.

“I don’t think it is appropriate for me to share in public forum when we are effectively in a complex legal negotiation with a variety of parties exactly what that says,” Cllr Letts said.

“I’m certainly happy to come on another occasion and take questions in camera.

“I would say it is the most significant issue facing the authority at this time in terms of the finances and it is the uncertainty of it that is difficult for the officers to work with and me in a political sense.

“We are looking to get it resolved in one form or another before we get to the budget setting meeting in February and hopefully before then.”

Committee member and Labour ward councillor for Shirley Alice Kloker said the deputy leader’s comments on the seriousness of the situation “speaks volumes”.

Cllr Letts said the £52million was a “best guess estimate” at the time of applying for exceptional financial support, which still needs formal approval from government.

He said the council was hoping to reduce the figure required “significantly” as part of the negotiations but added it was “complicated”.