2,000 Birmingham City Council jobs under threat

UP TO 2,000 jobs could go at Birmingham City Council, it emerged this week.

The local authority revealed its financial plans for 2010/11 on Wednesday, publicly announcing a below-inflation tax increase of 1.9 per cent.

But buried in its 109-page report on budget proposals was a single paragraph on 'employee implications'.

As the council bids to deliver its services in line with resources set out in a budget of more than £1,013m, the report states 'it is likely that there could be a reduction' in 1,500 to 2,000 funded posts.

The authority, which employs around 50,000 people, needs to save £69m to address 'budget pressures'. To that end, workforce changes are due to be finalised by the start of the financial year.

The report suggests that a proportion of the cuts can be made without mandatory redundancy. It says that redundancy – and retirement – costs will need to be met by services as part of the cost of implementing organisational change.

Council leader Mike Whitby said: "Despite the extremely challenging economic climate, we have been able to deliver a fair and reasonable budget that underlines our commitment to easing the tax burden on all households, and in particular support those who are on fixed-incomes or collecting a pension.

"In real terms, people will once again actually be required to pay less in the forthcoming year as we have successfully kept our proposed increase at just 1.9 per cent which is comfortably below the rate of inflation.

"To deliver this small increase five years in a row is a great achievement, and to do it in the current climate as well is remarkable.

"We are well aware that all the forecasts indicate the next few years will be tough for local government financially."

Union bosses have demanded talks with Birmingham City Council over the proposals.