Shropshire Council says jobs will have to go as it needs to 'resize to survive'.
The local authority said the money saved would be the equivalent of 540 full-time posts, when salary, pension and other costs are considered.Last year, its full-time equivalent headcount was 4,900.Savings of £35m, the equivalent of 56% of the annual target, have already been identified.
However, a rise in demand for services, along with unidentified savings, could result in an overspend of £38m, although the council's Portfolio Holder for Finance has said he is hopeful the figure will be much less."540 full-time jobs is the mean average salary and pension contribution, which gives us the amount of savings needed in our financial planning," said Gwilym Butler, Portfolio Holder for Finance.
The council is hoping to reduce the number of people it employs through voluntary redundancy and relying less on agency staff, as well as restructuring senior management and reducing the number of assistant directors by a fifth.Shropshire Council has paid external consultants millions of pounds in recent years to identify savings, a decision that angered opposition parties on the council.
However, the council said its partnership with PwC had saved twice what it cost this financial year, with a prediction of four times the cost next year.
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