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City council must shed 2,000 jobs

£110m budget axe means more job cuts than expected

Published on January 13th 2011.

City council must shed 2,000 jobs

Manchester City Council will have to lose 2,000 staff in the next year as it absorbs the full force of government spending cuts.

It will also have to find £110m of savings - £60m more than originally expected – putting Manchester among the worst five-hit councils in the country.

The council will now outline a voluntary severance package for staff to help it shed the required 17 per cent of its workforce. It said it still wanted to avoid compulsory redundancies but will encourage voluntary early retirement and voluntary severance.

Sir Richard Leese, leader of Manchester City Council, said: "The unfairness of the government's financial grant settlement for Manchester, one of the five worst in the country, has been widely reported.

"We now have to find £110m in savings next year - £60m more than expected – because of front-loading and the re-distribution of money from Manchester to more affluent areas.

"The accelerated cuts mean we can no longer achieve the staffing reductions we have been forced into through natural turnover which is why we are proposing a time-limited offer of voluntary severance and voluntary early retirement.

"At the same time we will continue to invest through our M people employee programme to improve the skills and the productivity of the majority of our staff who will stay with us.”

The up-front cost to the council of this package is likely to be in the region of £60m – but will generate an annual saving of £70m.

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5 comments so far, continue the conversation, write a comment.

AnonymousJanuary 13th 2011.

These 2000 cuts will go about half way to cure the overstaffing problem at the council. Unfortunately I expect that those who lose their jobs will be useful people like maintenance staff and traffic wardens. All the 'strategic'/'diversity'/'equality' managers and countless administration 'officers' will probably be staying to push pens, confer at expensive hotels and attend meetings about meetings down in London.

AnonymousJanuary 13th 2011.

Traffic wardens useful? Now there is a subject to rant about... but aren't they private sector employees. I can't recall when I was a school governor if we had a 'break clause' in the private sector cleaning contract but we should have done but people on contract for service (not employed by the Council/School will probably go!) (Football and Music that is.) unless the big society doners / parents pay as a the school budgets are cut.

Put The World To RightJanuary 13th 2011.

Hopefully we'll see a reduction in our courcil tax charges to reflect the decrease in service !!!

AnonymousJanuary 13th 2011.

Put The World To Right - no any decrease in service is due to cuts in the central government grant element of the council's budget rather than the locally raised element. This is why councils in more deprived, urban areas are disproportionally affected by the Tory government's cuts because locally raised council tax element (which the government have capped) forms a smaller proportion of the council's overall budget.

Bobby BJanuary 15th 2011.

I hope that given the Jobs cuts Manchester city council will scrap the £8000.00 funding they are planning to put towards the funding of two new " Gay Archways" for each end of Canal Street surley saving Jobs should come first , shame on you manchester city council

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