Managers go as council pay is slashed

 

Council pay bills have been slashed by more than 5% over the past
year in England and Wales, saving taxpayers around £1.4 billion,
according to figures released today.

The Local Government Association said the reduction in gross annual paybills from £26.3 billion to £24.9 billion amounted to 9.7% when inflation was taken into account.

Most of the savings came from pay restraint, cuts in overtime and a 214,000 reduction in the overall number of council employees since December 2010, said LGA workforce board chairman Sir Steve Bullock.

But he warned it would be "impossible" to deliver further savings on the same scale without deep cuts in staff, which would require large numbers of compulsory redundancies and a "big negative impact" on frontline services.

So far, the bulk of job cuts have been through voluntary redundancies and not replacing workers after they retire or move on, though there have been a "significant" number of compulsory redundancies, said Sir Steve, who is mayor of the London Borough of Lewisham.

Some 90% of councils cut top management costs by employing fewer people in senior posts or paying them less, while 79% reduced the cost of middle managers.

Sir Steve said: "Slicing £1.4 billion from the paybill hasn't been easy.

"Pay restraint and more efficient work practices have helped but the big saving has come from reducing the workforce, which we have been able to do largely through voluntary redundancies and not replacing workers when they retire or move to jobs elsewhere.

"It will be impossible to deliver the same savings again without another big reduction in the workforce which will inevitably involve a much higher proportion of compulsory redundancies.

"Frontline services will be hit and some of the services residents currently expect their council to deliver will have to be wound down.

"The frontloaded 28% cut in the funding councils receive from government is far larger than cuts faced by almost every other part of the public sector, including Whitehall departments. With the adult social care system dangerously overstretched and the country's roads in need of a £10 billion upgrade, similar cuts in the next funding period will have a big negative impact on the services councils can provide to residents."

Today's Local Government Earning Survey showed the basic local government paybill in England and Wales, excluding teachers, fell by 4.7% to £23.9 billion for the financial year 2011/12 from £25.1 billion in 2010/11 - a real-terms decrease of 9.2% when inflation is taken into account.

The gross paybill, which includes overtime and bonus payments, fell by 5.2% (9.7% in real terms) to £24.9 billion from £26.3 billion in 2010/11.

PA

Suggested Topics
Start your day with The Independent, sign up for daily news emails
News
newsAnother week, another dress controversy on the internet
Life and Style
Marie had fake ID, in the name of Johanna Koch, after she evaded capture by the Nazis in wartime Berlin
historyOne woman's secret life as a Jew in wartime Berlin
News
news... and what your reaction to the creatures above says about you
News
Jihadi John
newsMonikers like 'Jihadi John' make the grim sound glamorous
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Telesales & Customer Service Executive - Call Centre Jobs

£7 - £9 per hour: Recruitment Genius: Are you outgoing? Do you want to work in...

Ashdown Group: Finance Manager - Covent Garden, central London - £45k - £55k

£45000 - £55000 per annum + 30 days holiday: Ashdown Group: Finance Manager - ...

Ashdown Group: Systems Administrator - Lancashire - £30,000

£28000 - £30000 per annum: Ashdown Group: 3rd Line Support Engineer / Network ...

Recruitment Genius: Graduate Web Developer

£26000 - £33000 per annum: Recruitment Genius: A Web Developer is required to ...

Day In a Page

The difference between America and Israel? There isn’t one

The difference between America and Israel? There isn’t one

Netanyahu knows he can get away with anything in America, says Robert Fisk
Families clubbing together to build their own affordable accommodation

Do It Yourself approach to securing a new house

Community land trusts marking a new trend for taking the initiative away from developers
Head of WWF UK: We didn’t send Cameron to the Arctic to see green ideas freeze

David Nussbaum: We didn’t send Cameron to the Arctic to see green ideas freeze

The head of WWF UK remains sanguine despite the Government’s failure to live up to its pledges on the environment
Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

Set in a mythologised 5th-century Britain, ‘The Buried Giant’ is a strange beast
With money, corruption and drugs, this monk fears Buddhism in Thailand is a ‘poisoned fruit’

Money, corruption and drugs

The monk who fears Buddhism in Thailand is a ‘poisoned fruit’
America's first slavery museum established at Django Unchained plantation - 150 years after slavery outlawed

150 years after it was outlawed...

... America's first slavery museum is established in Louisiana
Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

The first 'American Idol' winner on how she manages to remain her own woman – Jane Austen fascination and all
Tony Oursler on exploring our uneasy relationship with technology with his new show

You won't believe your eyes

Tony Oursler's new show explores our uneasy relationship with technology. He's one of a growing number of artists with that preoccupation
Ian Herbert: Peter Moores must go. He should never have been brought back to fail again

Moores must go. He should never have been brought back to fail again

The England coach leaves players to find solutions - which makes you wonder where he adds value, says Ian Herbert
War with Isis: Fears that the looming battle for Mosul will unleash 'a million refugees'

The battle for Mosul will unleash 'a million refugees'

Aid agencies prepare for vast exodus following planned Iraqi offensive against the Isis-held city, reports Patrick Cockburn
Yvette Cooper: We can't lose the election. There's too much on the line

Yvette Cooper: We can't lose the election. There's too much on the line

The shadow Home Secretary on fighting radical Islam, protecting children, and why anyone in Labour who's thinking beyond May must 'sort themselves out'
A bad week for the Greens: Leader Natalie Bennett's 'car crash' radio interview is followed by Brighton council's failure to set a budget due to infighting

It's not easy being Green

After a bad week in which its leader had a public meltdown and its only city council couldn't agree on a budget vote, what next for the alternative party? It's over to Caroline Lucas to find out
Gorillas nearly missed: BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter

Gorillas nearly missed

BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter
Downton Abbey effect sees impoverished Italian nobles inspired to open their doors to paying guests for up to €650 a night

The Downton Abbey effect

Impoverished Italian nobles are opening their doors to paying guests, inspired by the TV drama
China's wild panda numbers have increased by 17% since 2003, new census reveals

China's wild panda numbers on the up

New census reveals 17% since 2003