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June 2011

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Treasury documents obtained by LGC showed that more than 50,000 of the lowest-paid council workers would opt out of the Local Government Pension Scheme if they were asked to increase their contribution level.

Finance experts said up to 20 councils were considering turning to the bond markets to raise in excess of £100m to pay off housing debt. The move followed the effects of the abolition of the Housing Revenue Account system and an increase in the cost of conventional borrowing.

LGC research showed that a combination of financial and political pressures had led to a sharp fall in chief executive pay among new recruits. A survey showed that 15 council chiefs appointed since the beginning of the year were being paid an average of 14% less than their predecessors.

DCLG scrapped plans to introduce shadow mayors in the nation’s biggest cities. The U-turn was announced by junior communities minister Baroness Hanham (Con) in the House of Lords.

Sir Merrick Cockell (Con) defeated David Parsons (Con) in the race to succeed Baroness Eaton (Con) as chair of the LGA.

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