A report to Torfaen’s Cabinet on the 18 January outlines proposals to save £9.2 million from the council’s 2011/12 budget.
The report initially seeks Cabinet approval for the budget proposals, which contain a range of savings measures from all service areas. The proposals in the report will result in 80 job losses. It also outlines discussions with trade unions to reduce the number of compulsory redundancies through voluntary redundancies, redeployment opportunities and reducing other workforce costs which include changes to the severance scheme.
Consultation with employees affected by redundancy proposals will commence following the decision by Cabinet and will last for 30 days.
A final budget will be submitted to full council on March 1.
The budget proposals have been set within the context of the 2011/12 budget settlement from the Welsh Assembly following the comprehensive spending review, current and future economic forecasts and the financial risks and challenges facing all public services.
The council has received a 1.7 per cent cash reduction in funding which increases in real terms, with capital funding set to fall by nearly 20 per cent.
The council is also discussing with Unions the potential to further reduce compulsory redundancies by seeking expressions of interest for:
- Voluntary reduced hours
- Additional unpaid leave
- Unpaid sabbaticals
- Career breaks
- Schemes to purchase additional leave
- Flexible retirement
- Term Time Working
Executive Member for Resources, Cllr Marlene Thomas said: “This will be the year when forecasts and estimates hit home and the public sector will make very difficult choices, which impact upon citizens. Like all other Welsh councils, change is necessary to bridge the gap between cuts and the rising cost and demand for services, however, we will make every effort to protect key services.”
Leader of Torfaen Council, Cllr Bob Wellington said: “This has been our most difficult budget ever, set within a perfect storm of increased costs and a real term reduction in cash.
“Future settlements indicate greater pressure, which is why we are working with public sector partners and neighbouring councils to create efficient, innovative services which will improve the lives of our citizens. Our aim is to protect valued services and jobs and while the budget proposals will require voluntary and compulsory redundancies; job losses are forecast to be lower than early predictions.
“Councillors have now agreed priorities for our second Corporate Plan which will be used to guide and focus investment decisions based on priorities such as education, care of vulnerable people and front-line services but flexible enough to react to changing circumstances.
“I am conscious that residents are feeling the pinch of recession and face similar decisions to make ends meet. Quite simply, it is our duty to make sure that every pound is put to its best use.”
