Mark Conrad Thursday, July 15, 2010

Birmingham faces up to squeeze with £230M savings

Birmingham City Council, the UK’s largest local authority, says it will need to make £230m worth of savings over the next four years – and may need to axe more staff - as part of its contribution to public spending cuts.

The council’s chief executive, Stephen Hughes, said the savings figure as a ‘big number’, but was a necessary part of balancing the authority’s books as the spending squeeze takes hold. Privately, the figures for Birmingham’s predicted cuts are being viewed as indicative of the sort of spending reductions facing other large unitary authorities.

Birmingham City Hall
Jobs cuts 'are likely' to follow at Birmingham, according to chief executive Stephen Hughes
Mr Hughes also indicated that job cuts were likely to follow at the authority, which currently employs 55,000 people, although officials have yet to determine whether redundancies would be necessary, or whether head count reductions could be achieved through other means.

Asked what messages he would communicate to staff, Mr Hughes told the BBC: ‘It is going to be tough, we will be open and honest with them about what changes are going to happen.

We will try and tell them as quickly as possible what they are and we will take account of their views. I can't say they will have a job for ever and a day, its not going to be true.’

Birmingham has already reduced its staff numbers by over 1,000 in recent months, with just 100 staff made redundant.

Mr Hughes’ team are determined to protect frontline services under the cuts programme, officials said, although some major investment projects have been put under review.

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