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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2011/01/2000-jobs-under-threat-at-council.jpg"><img class="alignnone size-full" title="Sir Richard Leese said Manchester City Council had to find savings of £110m" src="http://londonglossy.com/wp-content/uploads/2011/01/min-2000-jobs-under-threat-at-council.jpg" alt="Sir Richard Leese said Manchester City Council had to find savings of £110m"/></a></p>
<p>Around 2,000 jobs are at risk at Manchester City Council, it has announced.</p>
<p>The authority said it has been &#8220;badly hit&#8221; by Government cuts and needs to reduce costs by 8.9% this year.</p>
<p>Officials are expected to unveil a new severance package to encourage workers to take voluntary redundancy.</p>
<p>The council said it will need to see its workforce reduced quickly and by about 2,000 staff &#8211; around 17% of the workforce.</p>
<p>Sir Richard Leese, leader of the Labour-controlled authority, said: &#8220;The unfairness of the Government&#8217;s financial grant settlement for Manchester, one of the five worst in the country, has been widely reported.</p>
<p>&#8220;We now have to find £110m in savings next year &#8211; £60m more than expected &#8211; because of front-loading and the re-distribution of money from Manchester to more affluent areas.</p>
<p>&#8220;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.</p>
<p>&#8220;At the same time we will continue to invest through our &#8216;M People&#8217; employee programme to improve the skills and the productivity of the majority of our staff who will stay with us.&#8221;</p>
<p>The Council said it plans to honour a pledge to avoid compulsory redundancies.</p>
<p>The up-front cost to the Council of the new severance package, which is subject to approval by the Council&#8217;s executive on January 19, is likely to be in the region of £60m &#8211; but it will generate an annual saving of £70m.</p>
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