Almost £17m has been spent on making staff at Middlesbrough Council redundant in the past six years.
A report to be presented to the council’s Executive tomorrow shows that 869 staff have been made redundant since 2009/2010.
Of the £16,977,600 the authority has paid out, around £15.75m was spent on voluntary redundancy or early retirement schemes.
These schemes, according to the report, have been an “effective mechanism to avoid compulsory redundancy sitatuations arising” – with 84% of all redundancies since 2011 being on a voluntary basis.
Middlesbrough Council is facing the cuts axe again as Ray Mallon unveiled his proposals for another string of cost savings.
At Middlesbrough Town Hall Mayor Mallon set out his proposals for the budget for 2015/16.
Among the key proposals raised were:
:: The budget slashed by £14.1m;
:: 770 jobs affected – including 220 job losses, 350 staff transferring from Mouchel to council and 200 transferring out;
:: Council tax will rise by up to 2%;
:: Funding for books in libraries to be cut by half;
:: More automated systems, fewer staff;
:: Charging for Newport Road bus lane misuse to generate an income of £30,000;
:: Removing funding for speech and language therapy in schools – making schools are responsible for the cost. A saving of £30,000;
> Which will just be transfered to the schools, who can’t afford it either.
:: No subsidies for bus services 12, 28, 29A, 537, 603, 605, 606 and 607.
The budget comprises a list of proposed 45 cuts and charges to generate income for the local authority.
There will now be a consultation period until December 3.
There will be another full council meeting on December 10 regarding the consultation process.
Staff will begin a consultation period regarding their jobs tomorrow morning.
The latest savings come after £15m of cuts in the current financial year.
A further £40m had been slashed from spending in the previous three years, which has seen community centres and libraries closed and services such as grass cutting and street cleaning reduced.
There have been 728 job losses at the council so far – with a further 600 job losses expected between now and 2019/20.
Mr Mallon added that most job losses would be down to voluntary redundancy and retirement.
> Even if they were all met by voluntary redundancy and retirement, that’s still 1328 jobs that no longer exist.
He added that the council would endeavour to keep compulsory redundancies to a minimum.
Source – Middlesbrough Evening Gazette, 22 Oct 2014