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Liberal Democrat leader Charles Kennedy has said local authorities may need to pay public sector workers more money in areas where recruitment and retention of staff are a problem, writes Derren Hayes.

Speaking at the sixth annual Local Government Association conference in Bournemouth, Kennedy said the only way to overcome difficulties in recruiting in the public sector may be to offer workers better pay and more flexible working practices than other areas where recruitment and retention are not an issue.

He also called for councils to be given greater powers to raise more money locally through taxes that could directly tackle recruitment and retention problems in the public sector.

In many areas, particularly London, recruitment of social workers has hit crisis levels. Many are put off by high costs of living, unaffordable housing, and a negative public image.

Kennedy said it was not just an issue of paying public workers more money, there is also a need to reduce bureaucracy and value their jobs more.

He said: "We can't shy away form this reality: we may have to change the way we fund our local public services."