A council chief is getting a £40,000 pay rise as jobs and services are cut. Jim Taylor, chief executive of Rochdale council, will see his pay soar to £170,000 following a senior management review.

Critics have slammed the move as ‘unfair’ and ‘insensitive’ at a time of cuts – but the council says it brings Mr Taylor’s pay into line with other Greater Manchester council bosses and comes from his increased role on the Association of Greater Manchester Authorities.

Rochdale is cutting £45m in services with 150 jobs lost, the pay of other workers frozen and council tax hiked 3.5 per cent.

As well as seeing a hike in his basic salary, Mr Taylor will be able to earn thousands more as a returning officer in elections.

An independent review by consultants the Hay Group recommended the increases to bring the pay of senior managers into line with other council chiefs.

Mr Taylor’s current pay of £130,000 is the lowest of any council chief executive in Greater Manchester.

Mark Widdup, Rochdale’s director of economy and the environment, could also see his pay range rise from £61,536-£71,376 to up to £108,987 under the proposals.

Coun Colin Lambert, leader of the Labour group, said: “In 2010 the council’s leadership team consisted of 24 officers at a cost of £2.63m. Since this administration took power we have dismantled and replaced an outdated and expensive management structure.

"Today we have a leaner, more efficient core group of six senior and four assistant directors. This has provided us as ratepayers with a saving of £1.48m, which is a financial reduction of 56 per cent.”