Cuts of £8.3m may save jobs

TOUGH DECISIONS . . . Howard Sykes

COUNCIL chiefs say they have identified savings of £8.3 million that could nearly halve their financial blackhole and save up to 150 jobs.

Oldham was shocked last week when the council warned it was considering axing 850 jobs to balance a potential £17.3million deficit in next year’s budget.

Detailed plans to find more savings are now being developed and will be shared with staff, trade unions and residents.

Cost-cutting measures such as service efficiencies, reducing property overheads and generating income are being examined by financial chiefs.

They stress that it’s hoped any staff reductions can be achieved by natural turnover and voluntary options.

A package of support is also being developed for all affected staff and a 24-hour counselling service is available through Oldham Council’s Employee Assistance Programme.

Councillors and senior managers met with trade union representatives yesterday to brief them on proposals.

They will now go to Monday’s cabinet meeting for approval.

Council leader, Councillor Howard Sykes, blamed the budget deficit on factors including investment in improving services such as schools, inflation, and the high price of oil.

He said: “Like every family in Oldham, the council has to live within its means and balance the budget. We therefore have to look at all our costs and make tough decisions about where it is appropriate to make savings.

“However, these are still early days and we are only talking about options at this stage. There will be full consultation with our staff, trade unions, partners and other stakeholders including Oldham residents before any final decisions.

“We are committed to continuing to provide the high quality services that Oldham residents expect and to moving forward with important work to regenerate the borough and improve the education we provide for our young people.”

Cabinet member for finance and resources Lynne Thompson said: “This is just the first stage in this difficult process, but we are committed to ending the uncertainty for our staff by sharing our proposals with them as they are developed during the consultation period.”