Magazine article Public Finance

Welsh Councils Could Cut 2,000 Jobs

Magazine article Public Finance

Welsh Councils Could Cut 2,000 Jobs

Article excerpt

Welsh councils expect to make up to 2,000 people redundant over the next two years as a result of the recession.

A survey of the 22 local authorities by the Welsh Local Government Association found that at least 700 jobs would go in 2009 at 11 authorities. This is a result of councils having to cope with budget overspends due to additional demand on services and reduced income. The majority of job losses will be in the south of Wales.

The survey showed that authorities were anticipating a loss of £35m of investment income during 2009/10 from a decrease in interest payments, while town halls try to keep council tax increases down.

The WLGA has put the average council tax increase in Wales at between 3.8% and 3.9% for the next financial year, the second lowest since devolution in the late 1990s.

WLGA leader John Davies, an independent councillor in Pembrokeshire, said: Over the past year we have already seen a significant downsizing of local government services and staff levels as a result of insufficient funding for local government. …

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