Arun services and jobs face cut

Senior managers and the council's cabinet members have launched a three-month probe into Arun's spending, with a view to cutting 15 per cent off the next two annual budgets.

The council has been hit hard by five factors, including tumbling interest rates cutting investment income, a slump to zero in the number of council houses sold, a 650,000 drop in fees received for planning, building control and land charges, predictions of a major cut in central government grants and fears of a growing council pensions deficit.

Resourced director Nigel Croad and head of finance Alan Peach outlined two possible ways ahead for the council. The first assumed that a freeze on job recruitment and deletion of unfilled posts would save 500,000 a year over the next five years, although another #500,000 of savings would be needed each year to avoid major big cuts of up to 4.3m in 2014.

The second, more severe approach, envisaged cutting spending by #2.5m, or 10 per cent, from next year, but this would need swift action to implement, including identifying employees "at risk" of redundancy by the end of next month, with no guarantee the planning for such upheaval could be completed in time.

"Of the two options, Option 1 takes a measured approach towards achieving the savings required. It gives the time to review, plan and implement the necessary changes in service delivery and should, as a consequence, minimise the level and cost of any necessary redundancies."

All seven cabinet members unanimously agreed to work with senior managers to look for savings before November's cabinet meeting. But

Paul Dendle, who is in charge of the council's finance and central services, warned the process would be tough.

"We have to be more efficient as a council and deliver more for less," he said. "As a result of this, there will have to be some sort of reduction in overall staff totals.

"I agree that cabinet members should be involved in the nitty-gritty budget talks to look at how we can make the council more efficient and come back with the reduction, though some services will have to be diminished, reduced or even deleted."

-----------------------------

Click here to return to Gazette news.

Where are you? Add your pin to the Gazette's international readers' map by clicking here.

Email the Gazette: [email protected]