THE city council is asking citizens to become more involved in the budget process through the so-called Big Conversation Initiative. Could I therefore introduce the opportunity to discuss the one element of cost that increases each year, irrespective of the economic changes that affect the national and local economy?
I refer, of course, to the cost of employees' wages and pension contributions.
This current budget year, the direct wage cost rose by £6.9 million to £90.2 million, despite large-scale redundancies, as reported in the Derby Telegraph.
The pension contribution increased by £2.2 million to £18.8 million, which expressed as a percentage of salary, equates to an eye-popping 21%. The average in the private sector would be 1% or 2%.
An example would be that of an employee on a salary of £25,000, who would cost £5,250 per year in pension contributions – over £100 a week. This same employee would themselves pay in £24 per week.
These figures clearly indicate a pension cost that would, if implemented by political decree, result in mass unemployment and business collapse.
Would the council care to ask taxpayers if they are happy to continue to pay this very large element of their council tax?
Ian M Thorpe
Cornflower Drive
Oakwood
