COUNCIL JOBS (AND PAY) SHOULD BE SAFE - BUT SOMETHING'S GOT TO GIVE

                                                                         

NELC's civic offices in Cleethorpes - the jobs of staff are probably safe

THANKS to some £35-million in emergency cash support from Whitehall, North East Lincolnshire Council has kept its head above  the water during the pandemic.

But what happens when the Government turns off the tap?

That is the increasingly painful headache council chiefs are now having to endure.

All their budgets have gone to pot, and, with their income seriously depleted, they will now have to rethink how to balance the books.

Do scores of  council employees now face the bullet?

Probably not, judging by a report seen by the Grimsby News.

It states: " The vast majority of our  costs relate to staffing and long- term contracts. 

"From a legal perspective, the council’s scope to reduce long-term contractual commitments is limited. 

"To reduce employee costs, the council has two main options - reducing the number of employee or reducing the pay of employees.

"Any significant reduction in the number of employees would come at a significant cost in  redundancy payments, and the council does not have sufficient financial reserves to pay for significant settlement." 

The report continues: "The Council could choose to impose pay freezes for existing staff or specific groups of staff to maintain the current cost base. 

"However, the council relies on the goodwill  of employees and this approach would seem to run counter to the view of 'key workers' in the current environment. 

"Further, local government is one of the major employers within the local economy and, with a very high proportion of those staff resident in the borough, provides a significant input into the  local economy.

"The council has already seen some significant reductions in its workforce over the past 10 years, and any further reduction  is likely to lead to difficulties in fulfilling its statutory responsibilities."

But savings will have to be made somewhere because of reduced income from council tax (the collection rate could fall below 90 per cent) and from other sources such as parking income, planning and licensing fees, plus miscellaneous at-risk grants and rent from markets and business centres.

Drawing on the council's day-to-day reserves could be a short-term option, but this is not regarded as "prudent" especially as these so-called "rainy-day funds" are already lower than desirable. 

Inevitably that means that certain long-established services may be reduced or even scrapped if they are non-statutory.

Which ones are most at risk?

This has not been determined  but a review is already underway.

The report, to be considered at a special meeting of the cabinet this Wednesday, sounds a warning.

"Reduction of services could leave the council open to legal challenge and inevitably have reputational impacts."

No wonder council bosses are reaching for the aspirins!