Public-sector CEOs' reward packages are still only half that of their private-sector counterparts, according to research by PricewaterhouseCoopers (PwC).

Despite criticisms of there being public sector ‘fat cats', local authority CEOs earn an average of £228,000, compared with the £447,000 average paid to CEOs of private-sector companies.

Last year it was reported the top 300 state sector bosses saw their pay rise by 12.8%, compared with the 2% public-sector average.

But the PwC research finds that if private-sector reward package variables such as bonuses were reduced to zero, local government packages would still only be 81% of the private-sector equivalent.

Steve Beet, partner and head of local government, PWC, said: "Public perception of local government pay is an issue. In reality their packages are considerably lower than their counterparts in other sectors. More transparency is needed when setting and reporting local government executive pay."

The average wage in Britain is £27,000.