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11/09/2013
Wolverhampton City Council To Cut 1,000 Jobs
Wolverhampton City Council has said 1,000 council jobs could be cut by 2015.
It added that it has "no choice" but to make the large scale budget cuts which will impact on both services and jobs in the area.
Council Leader Roger Lawrence has described the news as "a dark day for Wolverhampton".
In a statement, Mr Lawrence said continuing government cuts as well as a Council Tax freeze over the last four years had led to a severe reduction in the authority's finances. At the same time, demand for certain council services were also increasing due to a rise in birth rate, a changing population and an ever-increasing ageing population, while the effects of changes to welfare look certain to add to the demand as well.
The authority said the cuts were necessary in order to avoid a deficit of £89m by 2019.
The job cuts could see up to 20% of the council's workforce lose their jobs.
Mr Lawrence said: "Austerity is not new and through our very careful financial management, we've sustained a reduction in our revenue budget of almost £100 million over the last 5 years. So we are in a better position than many other councils.
"However, continuing government cuts mean there is now no way to address the budget shortfall without considerable pain in terms of services and jobs, at all levels in the council.
"Nor can we make up the difference from our reserves, not least because if we carry on as we are by April 2015 those reserves will have been reduced to an unsustainable level."
He continued: "All existing services will have to be reduced and, if they are not essential or do not meet the stated priorities, they must stop altogether. Services that operate on a commercial basis will have to survive without a council subsidy, or else close.
"These changes must also impact on the Voluntary Sector and the nature of our relationship with the sector."
It is understood the Cabinet will hold discussions later this month about savings proposals, while services will only be maintained if they are determined by council policy, Government legislation or by the decision of the council to meet a proven demand.
The public will be consulted on a range of proposals prior to final decisions being made before the budget is set for April 2014.
(JP/CD)
It added that it has "no choice" but to make the large scale budget cuts which will impact on both services and jobs in the area.
Council Leader Roger Lawrence has described the news as "a dark day for Wolverhampton".
In a statement, Mr Lawrence said continuing government cuts as well as a Council Tax freeze over the last four years had led to a severe reduction in the authority's finances. At the same time, demand for certain council services were also increasing due to a rise in birth rate, a changing population and an ever-increasing ageing population, while the effects of changes to welfare look certain to add to the demand as well.
The authority said the cuts were necessary in order to avoid a deficit of £89m by 2019.
The job cuts could see up to 20% of the council's workforce lose their jobs.
Mr Lawrence said: "Austerity is not new and through our very careful financial management, we've sustained a reduction in our revenue budget of almost £100 million over the last 5 years. So we are in a better position than many other councils.
"However, continuing government cuts mean there is now no way to address the budget shortfall without considerable pain in terms of services and jobs, at all levels in the council.
"Nor can we make up the difference from our reserves, not least because if we carry on as we are by April 2015 those reserves will have been reduced to an unsustainable level."
He continued: "All existing services will have to be reduced and, if they are not essential or do not meet the stated priorities, they must stop altogether. Services that operate on a commercial basis will have to survive without a council subsidy, or else close.
"These changes must also impact on the Voluntary Sector and the nature of our relationship with the sector."
It is understood the Cabinet will hold discussions later this month about savings proposals, while services will only be maintained if they are determined by council policy, Government legislation or by the decision of the council to meet a proven demand.
The public will be consulted on a range of proposals prior to final decisions being made before the budget is set for April 2014.
(JP/CD)
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