Council cutting staff numbers to save cash

Council leaders discussed issuing a section 114 notice last year

Shropshire Council is set to cut its workforce by more than 10% to save £27m.

The local authority said the money saved would be the equivalent of 540 full-time posts, when salary, pension and other costs are considered.

Council leader Lezley Picton said the authority must "resize to survive".

Last year, its full-time equivalent headcount was 4,900.

The authority is under pressure to save £62.5m from its budget this financial year.

Savings of £35m, the equivalent of 56% of the annual target, have already been identified.

However, a rise in demand for services, along with unidentified savings, could result in an overspend of £38m, although the council's Portfolio Holder for Finance has said he is hopeful the figure will be much less.

Neighbouring Telford and Wrekin Council has said it is confident it will overcome a forecast overspend of £3.5m.

Compulsory redundancies 'a last resort'

Gwilym Butler said the council's forecast overspend is a 'worst-case scenario'

"540 full-time jobs is the mean average salary and pension contribution, which gives us the amount of savings needed in our financial planning," said Gwilym Butler, Portfolio Holder for Finance.

"But we can't say for sure how many jobs will go.

"We've got to make difficult decisions for our imminent survival and long-term sustainability," he added.

The council is hoping to reduce the number of people it employs through voluntary redundancy and relying less on agency staff, as well as restructuring senior management and reducing the number of assistant directors by a fifth.

Non-essential vacancies are also being removed.

Shropshire Council has paid external consultants millions of pounds in recent years to identify savings, a decision that angered opposition parties on the council.

However, the council said its partnership with PwC had saved twice what it cost this financial year, with a prediction of four times the cost next year.