Newcastle to slash jobs and services in ‘darkest day’

21 Nov 12
Newcastle City Council is to halve its senior management posts as it sheds 1,300 jobs over the next three years in an attempt to cut almost a third of its budget.
By Vivienne Russell | 21 November 2012

Newcastle City Council is to halve its senior management posts as it sheds 1,300 jobs over the next three years in an attempt to cut almost a third of its budget.

The council says it needs to reduce revenue spending by £90m by 2015/16 – its ‘toughest ever financial challenge’ – and yesterday published its proposals.

As well as the job losses, the council plans to close ten of the city’s 18 libraries and a swimming pool and move from weekly to fortnightly bin collections.

There is also to be a ‘radical redesign’ of the way the council is run, with a ‘substantial reduction’ in management costs. In finance, systems and processes will be streamlined and greater responsibility and accountability passed on to frontline managers. A smaller central finance and audit function will assure the council’s overall financial performance, the draft proposals state.

Human resources, business management and administration, and councillor support services will also be cut and the council’s office accommodation rationalised.

Council leader Nick Forbes said the publication of the cuts package was ‘one of the darkest days for public services in Newcastle’.

He added: ‘The cut in government grant is grossly unfair – at a time when more and more families are turning to us for help. Financially, this has put us in an impossible position from which there is no escape.

‘We will not abandon the residents of the city, but as we cease to provide some services they will have to do more for themselves and expect less from the council.’

The cuts are partly being offset by a shift to investment in more preventative services, including a new unit to tackle antisocial behaviour and environmental crime and £3m for flood prevention and repairs. Council tax paid by Newcastle residents will remain frozen.

Forbes said that the council would also be ‘pressing ahead’ with a £400m capital programme to provide the city with superfast broadband, better transport networks and affordable homes.

‘At the same time we will not let up on lobbying government to get a fair deal for Newcastle.’

The council’s Cabinet will consider the draft budget proposals on November 28 when a formal consultation with residents will begin. The Cabinet will then make final recommendations to the council on February 25, which will set the budget and council tax on March 6.

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