LGA media release – 25 November 2010
Around 140,000 local authority jobs are expected to be shed in the next year as a result of spending cuts, council leaders warned today.
New analysis by the Local Government Group has revealed that the scale of job losses is likely to be 40 per cent higher than was originally thought following last month’s Comprehensive Spending Review.
The LGA originally predicted 100,000 posts would go after Chancellor George Osborne set out the broad framework for public spending in the June budget. But the Government’s decision to ‘front load’ a large proportion of the cuts into the first year – rather than allow councils to spread them evenly over the four years of the spending review – is likely to lead to around 140,000 posts being cut.
The unexpected severity of the first year cuts means councils will have to trim their budgets by an average of 11 per cent in 2011/12. Some authorities will also have to deal with the difficult impact of the loss of the Working Neighbourhoods Fund, which channelled £450 million to different parts of the country.