A parish council has been accused of running up a shortfall of £17,000 – and it is being blamed on rising staff costs.

Peter Puddock claims residents of Kingswear and Hillhead have been “let down” by the council.

However, the council has hit back, saying it does not have a shortfall or money problems.

Villager Mr Puddock said: “This year, the parish council increased the precept by 35 per cent. This was to pay for the appointment of a second clerk – responsible finance officer – to cover finance as the parish clerk did not have these skills. However, once there was a second clerk, the first clerk had to receive a salary increase to reflect that she now had a supervisory role.”

Mr Puddock said the council held an extraordinary meeting because it believed it now had a shortfall of £17,000 – which included a deficit in the staff budget.

In addition, Mr Puddock said the second clerk had identified the two clerks needed to sign up to the Local Government Pension Scheme, which requires an employer’s contribution of 21 per cent.

In a letter to the Chronicle, he claimed no allowance was made for this in the budget for 2018/19 and said the finance committee had done no research on the different pension options available.

He added: “The annual staffing budget for Hillhead and Kingswear will now be just below £30,000, an increase of 80 per cent on last year and well above the average South Hams parish staffing costs of £10,000.”

The council has responded, saying it deemed it “necessary” to appoint an additional worker to cover the increased workload and to provide cover for holiday and sick leave.

It said local councils have been encouraged to take on additional services for the community. This is as a result of the devolution of services from principal authorities and from new powers available under the Localism Act.

“These services are managed by the clerk” which has caused a significant increase in workload, the council said.

The council explained: “The additional cost of this post together with the cost of the 18/19 local government pay award increased the staff cost to £23,645 in 2018/19.

“In 2016/17 and 2017/18, the council had reduced pay costs of £16,000, but in 2014/15 and 2015/16 the staff costs were as much as £21,000.”

The council’s employees are contracted to work 30 hours per week but are paid at a lower rate in comparison to previous clerks, it said.

Previously, the council had not offered a pension scheme to its employees and instead offered a gratuity payment in recompense.

“It is now mandatory for all employers to offer their employees a workplace pension scheme and this will of course increase the staff cost to the council,” added the council.

The council agreed in February to approve membership of the Local Government Pension Scheme for all of its employees. Employees of South Hams District Council are automatically enrolled into the scheme, the spokesman added.

“The annual cost of this scheme to the council is £4,277. The council will be seeking independent advice from a pensions adviser before making a final decision on their pension arrangements.”

In response to Mr Puddock’s claims the council had a shortfall of £17,000, the council said councillors met in July to discuss its spending to date and anticipated spending for the remaining part of the year.

The council said: “This year the council has had an unprecedented number of repairs to complete, which include the chapel, Cemetery Lodge and the replacement of the pontoon at Waterhead Creek.

“The list also includes costs relating to the reopening of Beacon Road, the Lengthsmen contract and the defibrillators. The cost of these together with the shortfall in staff cost amounts to £17,400.”

In addition, the council said some of the costs were estimates and have since been updated with more accurate figures and explained other projects may be delayed until the next financial year.

“The council agreed at its precept meeting in January to transfer £7,000 from its reserves to fund additional expenditure. There are sufficient funds within their reserves to fund the balance of costs identified. The council does not have a recurring shortfall in funds and can accommodate existing costs within the budget.

“At the extraordinary meeting it was agreed to put together a working party to look at ways to increase income and reduce costs in order that the council can continue to ensure public money is spent efficiently and to provide an effective service.”