2,000 job losses predicted at Welsh councils

It has predicted up to 2,000 job losses by 2011 - and a pay freeze for staff - amid signals that all councils are considering their spending plans as a result of the bleak funding outlook.

The gloomy prediction emerged after Gwynedd Council announced it was considering savings of £16m over then next three years.

The next five years will be the true test of devolution in Wales

Steve Thomas, WLGA

WLGA chief executive Steve Thomas said the Institute of Fiscal Studies’ forecast that overall public spending would fall by 0.1% annually from 2011 to 2014 would result in expenditure falling back to 2002 levels.

He said the Welsh Assembly Government would see a reduction of £216m in revenue and £200m in capital in 2010-11 alone.

“Every public body will need to plan and work together, however greater efficiency alone will not be enough to deliver the levels of savings that are needed, other radical choices will be required,” he said.

Bleak

“The next five years will be the true test of devolution in Wales as we work together to maintain public services within one of the most difficult and demanding of contexts since the Second World War.”

Mr Jones said 700 jobs had been lost in Welsh councils during 2009 and 2,000 more were predicted in the next two years. With the outlook so bleak, councils were reviewing medium term financial plans.

He added: “Making savings without affecting services is going to be extremely difficult for councils and tough choices over potential service cuts are inevitable.

“A local government pay offer 0.5% has been put forward for this year and it might be that in the future we have to look at a pay freeze.”

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