A Liberal Democrat proposal to freeze pay increases to Gateshead council's senior staff was rejected.
Gateshead council met to discuss its Pay and Accountability Pay Policy Statement for council staff.
Gateshead's Liberal Democrats proposed the leader of the council, Coun Martin Gannon, write to the Joint Negotiating Committee (JNC), to suggest a pay freeze.
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The JNC is the body responsible for negotiating pay and work conditions for local authorities' chief executives and chief officers.
Deputy leader of the Liberal Democrat group, councillor for Low Fell, Ron Beadle, addressed the full council meeting and proposed a freeze to show "leadership" and "fairness".
Coun Beadle told the council: "It has become increasingly clear and even clearer after yesterday's excuse for a budget by the Chancellor that the next few months and the next year are going to be incredibly difficult for people, probably the most difficult year most of us will experience."
"And in those circumstances we are putting this amendment, and of course this item does not say anything about councillor pay, it also implies, and that's a correct implication, that all councillor allowances should also be frozen."
"This is about leadership. We are not suggesting Gateshead should go it alone, we are suggesting that Gateshead should suggest something to the rest of the country about local government leadership at a time of national government failure."
The Liberal Democrat councillor for Dunston Hill and Whickham East, Peter Maughan said: "The basis for this amendment was clearly cemented in common sense. This is a difficult time and we are all going to have to suffer and our constituents will have to suffer it, many of them a lot worse than we will."
"This is not councillor Beadle and the rest of his group saying lets pick on our chief officers. Gateshead officers aren't mentioned in this. This says if we are going to save money lets make a gesture first.
"We do support this because it is common sense. We are looking from a motivation of common sense and fairness and we hope this council will carry that through."
The proposal was met with vocal opposition by several Labour councillors including Coun Lynn Caffrey, of Chopwell and Rowlands, and Labour council leader Martin Gannon.
Coun Caffrey addressed the council immediately following the proposal claiming such measures sent out the "wrong message at the wrong time".
The Chopwell and Rowlands representative cited concerns over council recruitment at the current level of salaries available and undervaluing council officers as key reasons to reject the proposal.
Gateshead council leader Martin made a full-throated condemnation of the proposal.
Coun Gannon said: "Council, I urge members to vote against the amendment. Councillor Maughan says this is cemented in common sense. Well of course the truth is it's election time isn't it Ron?
"And I have got no doubt that the leaflets are already printed, 'Liberal Democrats have called for a pay freeze for overpaid council fat cats and the Labour Group has refused to do so at a time of a cost of living crisis.
"But maybe you may want to put some additional facts on.
"Local government salaries have been absolutely decimated over the last twelve years. Initially, in the first five years, as part of the coalition government of which your party was part of, which reduced local government salaries across the board by 21%
"In addition to that because of the austerity cuts we have suffered reductions in government grants of 56%. As a consequence we have reduced senior management costs by 60%"
The amendment was rejected and the statement was noted and agreed.
