Consultation over 15 per cent staff reduction at Croydon council

By Tara O’Connor, Local Democracy Reporter

Consultation with hundreds of staff on whether they will be made redundant is nearing the end at Croydon council.

And now the authority has been urged to pause the consultation period by trade union Unite.

The council employs 6,000 people, including in schools, and every year £170 million is spent on staffing at the council.

In a bid to save £20 million, the council is looking at a 15 per cent reduction in staff – a total of 410 post reductions, some of which are currently vacant.

The impact of this would be the loss of 151 full-time equivalent roles held by permanent staff, and a further 235 jobs which are currently vacant or held by agency staff.

Unite regional officer Clare Keogh said: “Unite is urging Croydon to pause these reckless jobs cuts and fully consider all options to preserve as many jobs and protect front line services.

“Croydon council workers and the borough’s residents need to have confidence that the council is adopting a properly-thought-out strategy and not a fire sale.”

Ms Keogh also blamed the government for funding problems at local authorities.

She added: “It is vital to remember the real villain of the piece is the Conservative government which has been starving councils of funding for a decade.

“Councils have been in the front line of coping with the Covid-19 pandemic but have not received anything like the funding needed to meet these challenges.”

But council leader Councillor Tony Newman said that the 45-day consultation period, which is due to end on August 21, would not be paused, but he would not rule out further consultation after this date.

“I would not rule that out but in fairness to everybody impacted by this we do need to see where we are at the end of this formal consultation.

“My ongoing message to government is we continue to take on more responsibility with Covid,” he said.

In May, an independently chaired Finance Review Panel was set up by Croydon council to make decisions on immediate measures to save money.

The council is currently facing a £62 million shortfall which could take two years to recover from.

Cllr Newman said that council is doing all it can not issue a section 114 notice – issued by councils in dangerous financial circumstances, banning all new expenditure.

He said: “We are at no greater risk of 114 than most other councils.”

“We continue to try to avoid that at all costs, but we do just need government to step up and honour the promises.”

Croydon North MP and Shadow Secretary of State for Communities and Local Government, Steve Reed, said if local government doesn’t get more support councils across the country will be facing bankruptcy.

In an official letter to Robert Jenrick, local government secretary of state, in May, he wrote: “The funding crisis is so urgent that many councils report that they only have funding available to continue operating at current levels of activity for a few more weeks.”

Pictured top: Croydon Town Hall