Budget could spell major job losses

Unions are being warned of a harsh winter ahead with job losses in three figures and council services under threat.

Major redundancies are being planned as Oldham’s new Liberal Democrat administration discusses its first budget.

Finance spokeswoman Lynne Thompson said: “We already know there is a black hole in the budget — a figure of £19 million has been quoted.

“There is a £10.5 million backlog of maintenance on buildings we use, let alone places like the old town hall. The Government says we have six years to pull it back.

“The council has been lurching from year to year just to make enough efficiency cuts and reductions to balance the budget and make it legal.

Grades

“We cannot go on like this. We are determined that the budget we set this year will get to the bottom of the problems. If we don’t we are going to end up with collapsing services.

However, she said the council’s £230 million Building Schools for the Future (BSF) scheme is not under threat, adding: “Categorically no.”

Councillors will get their first debate on the 2009/10 budget at Cabinet on September 29.
Lynne said rising fuel charges have added £600,000 to transport costs, while a new department for safeguarding vulnerable adults has to be paid for.

Job evaluation is due for all council staff, followed by new pay grades.

The budget talks come at a difficult time for the council as chief executive Andrew Kilburn and treasurer John Bland are both leaving. A new financial system is also being bedded in.

Labour’s opposition leader, Councillor Jim McMahon, drew up last year’s budget and hit back. He said: “It was deliverable and assumed we would be in control. It was difficult to achieve and needed really strong political leadership which is where it is falling down now.
“Making changes like not using Oak Colliery and buying the Brook Mill in Hollinwood will have a domino effect. Paying for the Brook Mill will cost £300,000 a year — it is like building a house of cards, pull one or two out and the whole thing could collapse.”