PAYMENTS for councillors will no longer be able to be set by council under a new allowances regime proposed yesterday.

The Independent Renumeration Panel for Wales yesterday said it no longer wants to set maximums for allowances and would instead proscribe the amounts councils would pay.

Previously councils were able to hold back increases in their allowances or freeze them if they wanted to.

But the panel said that it had responded to frequent requests from councillors to “take the setting of allowances out of the political arena” and a avoid a “race to the bottom”.

Caerphilly froze their allowances for the third year running for the 2011/12 financial year, while Newport also froze its allowances during the year.

For 2011/12 Newport and Caerphilly will have to pay their leaders a senior salary of £47,500 each, and their deputy leaders £33,460. Other cabinet members would receive £28,780.

Blaenau Gwent, Torfaen and Monmouthshire leaders will be paid £42,300 for the year, while deputy leaders in the councils would receive £29,820. Cabinet members would get £25,660 in the authorities.

Councillors in all local authorities would get a basic salary of £13,175.

Senior salairies for leaders and deputy leaders would be reduced by 10 per cent from the maximum available, a report from the panel said, while basic salaries would be reduced by five per cent.

However some councils may face additional costs as they have been paying less than average.

The proposals are out for consultation until October.