Recession hits local councils

Wednesday, 14 January 2009 12:00 AM

By Laura Miller

Unemployment looms for many public sector workers, the Local Government Association (LGA) warned today, as one in seven councils axe jobs to save money.

The economic slowdown has led 13 per cent of UK councils to cut jobs, and 22 per cent have stopped employing new staff indefinitely, according the LGA's survey of council chief executives.

"It is a highly unpleasant decision for any council to cut jobs but they also understand that local people are suffering. Councils are working hard to keep council tax down, to keep local businesses afloat and help people deal with the impact of the recession," said chairman of the LGA, councillor Margaret Eaton.

Yesterday politics.co.uk reported on the increased demand placed on local government services for financial and mental health advice, as well as a rise in housing benefit claims, due to people slipping into debt and depression brought on by the economic crisis.

The LGA's findings echo councils' own announcements of job cuts in reaction to a reduction in income, combined with a determination to keep this year's council tax rise as low as possible.

"There is a fine balance for councils between helping to stimulate the economy and keeping council tax down for hard pressed taxpayers. There are no simple answers or quick fix solutions, but councils are working flat out to get the balance right so that the country's economy doesn't suffer in the long term and taxpayers don't suffer in the short term," said councillor Eaton.

But the GMB - Britain's general union - yesterday criticised Nottingham City Council over 350 planned redundancies, accusing it of having "wasted money in recent time, in particular with it having got through three expensive chief executives in the past few years".

In some parts of the country councils are the largest employer, and local authorities employ 2.2 million workers nationwide.

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• domestic policy
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• local government