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Gloucestershire Business News

Stroud District Council could cut 20 per cent of staff to prevent £3m hole in budget

Stroud District Council says it could be forced to cut 20 per cent of its staff over the next four years to offset a £3million shortfall in its budget.

The council is set to lose £3million by 2021 due to a loss of government grants and cuts to the New Homes Budget.

The council currently employs 337 permanent staff, which means as many as 67 jobs could be at risk.

Although no decisions have yet been made, the council is considering what difference the loss of 20 per cent of its workforce could make to its budget.

David Hagg, chief executive of Stroud District Council, said: "Like other councils, we face huge pressure on our finances. We will be the first authority in Gloucestershire to lose all the grant we receive from the government. In 2019/20 the district's council taxpayers will be paying £549,000 to the government; something I have never come across in my local government career. This will be the largest sum paid by any Gloucestershire council and marks a new relationship between central and local government. Effectively, we have to become a 'self financing' council. If we don't take action we could face a £3million hole in our finances by 2021.

"Increased income and more efficiencies are part of our agenda, but a large part of our spending is on our workforce. Consequently, we're looking at what a 20 per cent reduction in staffing over four years means for us. We haven't decided this yet, but we have to plan for more spending cuts as part of tackling the budget challenge."

Stroud District Council, in common with all local government, has seen significant reductions in the level of government funding since 2010. At the moment it relies on government grant, council tax, business rates and the New Homes Bonus, which was introduced in 2011/12. Changes to the New Homes Budget could mean the council is reliant only on council tax and business rates to fund services from 2021.

The council is considering a number of ways of making up the shortfall, including generating more income.

What do you think? Could the council work more efficiently and avoid job cuts? Email mark@moosemarketingandpr.co.uk 

Picture: Stroud District Council's Ebley Mill headquarters.

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