Derby City Council details proposed budget cuts

Derby City Council is proposing to cut almost £5m from its health and housing budget in a bid to save £27m over the next two years.

The Conservative-led council will also freeze council staff salaries and council tax for the next two years.

The cuts could result in 570 job losses, but that figure was only an estimate, the council said.

The council is losing £17.4m of government funding next year with a further £9.5m being cut in 2012-13.

'Flawed' process

A review of senior management in the city will save £1m next year.

The council has also suggested moving its residential homes for the elderly to the private sector.

The authority said it could not afford the investment needed to bring the current residential homes up to standard.

Council Labour leader Paul Bayliss said the move to buy more services from the private sector was "flawed".

"There is a philosophy in this budget that the council should be enabling and not producing services - and should be buying services from the private sector. We think this philosophy is flawed," he said.

A council spokesman said: "What is clear is that we cannot afford to continue to do everything that we do now but we are confident that we can protect many of our frontline services."

The city's council house refurbishment project would continue because it would cost more to move back into the old accommodation.

Cuts in other city departments include £4m in children's services, £1.5m in the chief executive office and £1.1m in resources which includes back office support.

The proposals must be approved at a full council meeting in March.