2,000 jobs under threat at council

Around 2,000 jobs are at risk at Manchester City Council, it has announced.

The authority said it has been “badly hit” by Government cuts and needs to reduce costs by 8.9% this year.

Officials are expected to unveil a new severance package to encourage workers to take voluntary redundancy.

The council said it will need to see its workforce reduced quickly and by about 2,000 staff – around 17% of the workforce.

Sir Richard Leese, leader of the Labour-controlled authority, 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 Council said it plans to honour a pledge to avoid compulsory redundancies.

The up-front cost to the Council of the new severance package, which is subject to approval by the Council’s executive on January 19, is likely to be in the region of £60m – but it will generate an annual saving of £70m.