Carmarthenshire County Council acted ‘contrary to law’ by making a decision that allows senior officers to opt out of the Local Government Pension Scheme (LGPS) – to avoid potential tax liabilities – and be paid a ‘supplement’, equivalent to their pension contributions, to enable them to make their own arrangements for retirement. It also acted unlawfully when it decided to grant an indemnity to the Chief Executive to bring a libel counterclaim against an individual.

Councils in Wales have been able to meet the financial challenges so far – despite considerable pressures - but the cracks are beginning to show. In his report, published today, the Auditor General for Wales says local authorities will become increasingly reliant on having robust and appropriate arrangements in place to deliver efficiency savings, but that currently many do not have them.