Council facing £119m deficit could shed more than 900 jobs

Early budget proposals for 2021/22 to be presented to Leeds City Council’s executive board next week outline efforts to address a £119m deficit.

But the council says the “tough decisions” presented won’t be finalised until February. These include a potential cut to its workforce of 914 full-time jobs.

Last month, the council reported it was anticipating losing more than 800 posts from its workforce.

The funding gap for the next financial year was first reported in September through a medium term financial plan.

Leeds City Council says it is now close to closing this gap, but must still find an additional £5.3m of savings.

Leader of Leeds City Council, Councillor Judith Blake, said: “The recent Government spending review failed to provide sufficient funding for adult social care or to fully close the gap caused by pressures associated with COVID-19.

“Like many other local authorities this leaves the council no option but to look for further savings.

“We will also continue to engage with the Government to try and obtain further funding to help reduce the impact of budget pressures on services.

“We have already seen a number of valued colleagues leave the council and that impact will continue to be felt as more leave over the coming year.

“These are incredibly difficult times for Leeds City Council and none of these recommendations have been made lightly.

“Our staff are showing outstanding commitment, hard work and dedication during these unprecedented times.

“I would like to thank each and every one of them again for their efforts. They can be assured we will do everything possible to avoid compulsory redundancies.”

Detailing its latest savings proposals, the council’s update states:

• A potential reduction in workforce as a result of these latest proposals involves 97.5 full-time posts. Combined with savings proposals already considered by the executive board in September, October and November, total savings proposed are £63.4m, with a potential overall cut to the workforce of 914 full-time posts.

• A 1.99% increase in core council tax has been proposed with further discussions to take place over how the Government’s proposed adult social care precept of 3% will be dealt with in this and future years. This will be finalised at full council in February.

• COVID-19 has seen business rates reduce by £104.3m. The Government has provided £75.6m towards this, meaning the council has had to find savings to meet the shortfall of £28.7m.

• Leeds City Council has submitted an application on behalf of Bradford, Calderdale, Harrogate, Kirklees, Leeds, Wakefield and York to form a business rates pool, which would retain business rates resources within the region rather than handing them back to central government.

• The Spending Review 2020 announced a “pay pause” for all public sector workers with the exception of those earning below £24,000 who are to receive a minimum £250 increase. The council has therefore budgeted accordingly.