Newcastle City Council has dropped plans to cut workers’ pay and has found alternative ways to save over £2m.

The North Eastern council needs to find £30m in savings over the next year due to what it describes as ‘unprecedented and unfair government cuts’.

Initially, they planned to end premium payments for weekend and evening working which would have saved £2.5m.

However, this has been abandoned and alternative proposals to reduce the councils outgoings have been identified.

The council will reduce the number of management posts and will work to improve the performance of their pension fund in order to make savings.

They also noted the increase in the statutory living wage announced as part of the Autumn Statement was lower than expected.

Together these savings could potentially total in the region of £2.2m – still leaving a budget shortfall of £0.3m.

‘We value the work our staff do on behalf of the city and ending premium payments for weekend working was a last resort to protect public services in the face of unprecedented and unfair government cuts. So it is good news that we have found an alternative approach,’ said cabinet member for resources, Cllr Veronica Dunn.

‘The staff themselves have responded constructively, coming forward with savings proposals of their own – many of which we are actively considering.

‘It is clear from the Chancellor’s autumn statement that austerity for local authority councils will be with us for a long time to come.

‘This will continue to be an issue that will challenge us, but we do listen to what our staff tell us, and we do value the incredible service they provide to the people of Newcastle.’