Cash-strapped Derbyshire town council could face court action

Staveley Town Council has a deficit of more than £400,000, according to the authority's leader

A union has said it will take court action against a cash-strapped town council that laid off the majority of its staff.

Staveley Town Council (STC) axed more than 10 workers on Friday due to historic debts and a £400,000 deficit.

The union Unison said it was bringing legal action over the non-payment of wages.

Council leader Paul Mann has previously said the pandemic and historic debts were to blame for the problems.

Dave Gorton, Unison's Derbyshire area organiser, said: "No-one in the council has answered my question as to when the monies owed will be paid. 

"I don't think there's any communication between officers and elected representatives over this matter or, indeed, others.

"It's certainly difficult to know who is actually in charge."

'Stark facts'

The union said some staff were told they would only receive redundancy money in instalments.

Councillor Paul Jacobs, who leads the Liberal Democrat group on the council, said making redundancies was an "awful thing to have to do".

He added: "The stark facts however are that Staveley Town Council is bankrupt." 

Mr Jacobs said the decision to close a "loss-making café" had actually been made following a vote in November last year and accused the leadership of "ignoring this", the Local Democracy Reporting Service said.

Council leader Paul Mann voted against it but denied ignoring the result of the vote.

Mr Mann said he believed only the town clerk and a caretaker were left now, leaving him "concerned they would be unable to carry out the day-to-day running of the council".