Boroughs aim to cut costs by sharing chief executive

Two north London boroughs unveiled plans today to share a chief executive, saving tens of thousands of pounds.

Labour-run Islington and Camden councils are also considering a joint senior management team in a bid to cut costs further. It would be the first time two London boroughs have joined forces.

Islington chief executive John Foster, who was paid £210,000, will retire this autumn and not be replaced. It is understood that Camden chief executive Moira Gibb, who earns about £230,000, will run both councils.

Town hall chiefs say the move would cut management costs and reduce overheads on services at a time when councils face severe budget cuts. Both boroughs face holes in their budgets of up to £100 million. The two already share a contract to provide school meals.

Camden council leader Nasim Ali said: "As the scale of the cuts to public services becomes clear it is right we examine all the options available to protect the frontline services our residents value."

Islington leader Catherine West added: "By working together, we have a combined purchasing power and more clout when it comes to getting better value for money in service delivery."

The money-saving move is in contrast to Tory Wandsworth council, which has the country's highest-paid chief executive. Gerald Jones came under fire from public sector unions after it emerged he was paid £356,891 last year. He is one of 32 council executives in the capital who earn more than the prime minister.

He is followed by out-going Newham chief executive Joe Duckworth, who earned £281,085, according to figures revealed by the GMB union. The chief of Hammersmith & Fulham was paid £270,474 while Lambeth's boss received £269,836, including pension contributions and back pay.

GMB regional secretary Paul Hayes said: "Council workers will be sickened to learn the levels of their bosses' pay."

Wandsworth claimed Mr Jones's pay was unusually high this year as he is about to retire and was paid two bonuses and that his successor will be paid less than £200,000.

A spokesman said: "Councils like Wandsworth are a £900 million-a-year business and look after over £3 billion of public assets."