Council announces £14m savings

Chief Executive of Rochdale Council, Roger Ellis

Rochdale Council’s Cabinet have agreed around £14 million of phase one efficiency proposals.

The council needs to save £50 million in the next financial year (April 2011 – March 2012) and these savings will contribute towards this target.

Council management are holding briefing sessions with staff this week to explain these proposals and the potential job losses.

The proposals, which have also been approved by the all-party Efficiency Committee, include:

• £1.4 million - Merging and rationalising functions across the council
• £3.5 million - Significant reduction in management posts, a review of administrative and support functions, and proposed service restructures
• £2 million (approx) - Budget savings in core services (Legal / Human Resources/ Finance / Performance and Transformation) and reductions in the use of consultancies
• £1.2 million - Planning, Housing and Regeneration budget savings
• £2.1 million - Children, Schools and Families budget savings
• £1 million (approx) - Contributions from our arms-length partners
• £1.7 million - Land disposal and asset management savings
• £1.7 million – from increasing charges for certain services

Staff will now be consulted on the proposals which, if implemented, would start in November 2010.

“We are looking at ways to make our services more efficient, avoid duplication and stop delivering some work, but unfortunately there has to be a reduction in jobs,” said Chief Executive Roger Ellis.

“We’ve had a lot of suggestions from staff about how we can save money and some good ideas have come out of the initial consultation. It’s important staff are fully supported and involved in the process and that’s our first priority given the severe challenges we face.”

“We’re also trying to protect the frontline services vulnerable people depend on by delivering services for less money.”

The council is looking at different ways to reduce the impact of redundancies; this includes early retirement and voluntary redundancy.

A full package of support is being made available for staff at risk of redundancy, including 1:1 advice, job search and interview help, training, counselling and regular progress updates is being made available to staff to help them during what Mr Ellis described as “a difficult time.”

The council plan to tackle the £50 million savings in two phases. The first will be discussed with staff and trade unions from August, with the second phase set to begin in late autumn.