‘GRAVE RISK’ OF COUNCIL REDUNDANCIES

Finance chief’s warning of more compulsory departures

SWANSEA Council’s chief finance officer has warned there is a “grave risk” of compulsory redundancies next year.

Ben Smith said the authority faced a funding gap in excess of £20 million.

He said there were also fewer employees putting themselves forward for early retirement and voluntary redundancy, describing the redundancy threat as “the elephant in the room”. ■

SWANSEA Council’s chief finance officer has warned there is a “grave risk” of compulsory redundancies next year.

Ben Smith said the authority was in line to receive £18,000 extra from the Welsh Government in 2019-20, but faced a funding gap in excess of £20 million.

Addressing a scrutiny group, Mr Smith said there were also fewer employees putting themselves forward for early retirement and voluntary redundancy.

“There is a grave risk of redundancies – the leader (councillor Rob Stewart) has said that – and the risk of a greater element of compulsion,” he said. “I don’t think there are any surprises in that.”

He described the redundancy threat as “the elephant in the room”, but pointed out the council had the seventh most generous Welsh Government settlement offer out of Wales’s 22 councils as things currently stood.

The Welsh Government will finalise its 2019-20 spending proposals next month, and could potentially offer councils more money.

“I don’t know if Santa is coming or the Grinch is stopping Christmas,” said Mr Smith. “I am expecting to prepare for the worst, and celebrate good news when it comes.”

Mr Smith said the UK Government had given the Welsh Government more money, and that it was also “unarguable” that Cardiff Bay leaders were planning to spend 7% extra on health while local government was, across the piece, in line for a 0.3% reduction.

The Welsh Local Government Association (WLGA), which represents councils, is lobbying ministers to rethink their plans.

Last week Mr Stewart, who is a WLGA deputy leader, warned 400 teaching jobs were under threat in Swansea if more money was not provided to fund teacher pay and pension rises.

Speaking at the scrutiny meeting, councillor Chris Holley said Assembly Members copped flak if the health service had problems, and councillors were criticised when local government services suffered. “If AMS are taking stick about the health service, they put money into it,” he said.

Councillor Paxton Hood-williams said: “It is quite clear now that the real reason there is a cash crisis [for councils] is because of decisions of the Welsh Government.”

Cardiff Bay leaders have previously said the NHS is their priority. Additional health money proposed will fund staff pay awards, investment in primary care and meet other growing costs.

Mr Smith said the council was holding £7 million in reserve to fund the next two years of early retirement and voluntary redundancy payouts.

Departing staff could receive 30 weeks of full pay and early access to their pension, although there was a period when they could receive 45 weeks of full pay.

“It can mean that departure costs are quite expensive,” said Mr Smith, although he added recouping these costs took just over a year.