Chief executives have demanded a minimum percentage pay increase of between 3.5% and 4% from local government employers to avoid councils being in the ‘bargain basement' for public sector salary rises.

Employers offered council chiefs a flat rate pay rise of £1,925 to all staff in July but the Association of Local Authority Chief Executives and Senior Managers (ALACE) said the proposal did not heed its call for senior salaries to remain competitive.