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Liverpool cuts annual wages bill by £4.5m

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Liverpool City Council hopes to save £4.5m a year by making half of its senior management posts redundant and cutting the salaries of those left.

More than 48 senior management posts are to go, 74 council business units are to be reduced to 27 and senior officers’ pay to be cut under the plans.

Salary reductions range from a proposed 3% cut for the new chief executive, Lancashire CC’s Ged Fitzgerald, to much bigger salary sacrifices for more junior managers.

Directors, of which there will be six under the new structure, are to have their salaries cut by 12%.

The 11 assistant director posts that survive the restructuring are to have their salaries cut by 24%, while the 25 divisional manager salaries drop 22%.

Senior managers have already forfeited performance-related pay, for a saving of £300,000 a year.

Leader Joe Anderson (Lab) said the “radical” reduction of management posts from 91 to 43 would have “a much leaner, more efficient team of managers”.

He added: “Quite frankly, the city council has suffered from a top-heavy, bloated senior management set-up, weighted down with too much paperwork, form filling and box ticking.”

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