Under the Local Government Act, how are councillors' allowances generally set?

Councillors' allowances are generally set by an independent remuneration panel under the Local Government Act. This process ensures that the determination of allowances is objective and free from political influences that might affect the fairness and appropriateness of the compensation. The independent panel considers various factors such as the responsibilities of councillors, their workload, and the need to attract individuals to these positions without excessive financial burden on the taxpayer. This system aims to provide transparency and accountability in how public funds are allocated for elected officials’ remuneration.

The other choices are less suitable because a committee of councillors might have conflicts of interest affecting their decisions, public votes may not accurately reflect the necessary professional considerations needed for setting such allowances, and the central government is not directly involved in setting local councillors' remuneration, as local authorities are given the autonomy to manage their own affairs regarding allowances.