Councils consider plans to shed 170,000 public sector jobs

Councils are considering plans to reduce their spending including by cutting up to 170,000 public sector jobs in anticipation of a dramatic downturn in their budgets.

Dame Margaret Eaton, chair of the Local Government Association, said that local authorities were being hit by a “perfect storm” in the recession with increased pressure on their services and a squeeze on their budgets. Privately, councils are looking at how to slash their budgets by 15% over the next three years, using projections on the cuts necessary to reduce the £178m public deficit drawn-up by the respected Institute for Fiscal Studies.

With staff forming the biggest chunk of their spending, many believe that up to 10% of the wage bill must be cut amounting to up to 170,000 of the 1.7m public sector workers employed by councils. They include cleaners, administrators, refuse collectors and care workers.

The government today published a 10 point plan for councils to help them cut spending while protecting frontline services in anticipation of a BBC survey which is due to be published revealing the extent to which councils are planning to cut services. It is understood to include indications from individual councils of the plans for job cuts and spending freezes. It reveals that arts and leisure services will be most vulnerable to cuts while homelessness, children’s social services and planning are likely to be more protected.

read more at http://www.guardian.co.uk/society/2010/mar/01/councils-budget-cuts