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Councils have already made £150m in cuts to the local government pay bill, according to the LGA. With the public sector coming under pressure from politicians to reduce spending, local government showed it has already got to grips with making savings without hitting services. The annual survey of town hall pay revealed the council staff bill was £26.1bn in 2008-09 compared to £26.25bn in 2007-08 – a cut of 3.6%. Rather than make staff redundant, which would add pressure to communities hit hard by the downturn, local authorities have tackled working practices. The report found councils have made cuts in overtime and bonus payments, as well as reducing the hours worked by professional and backroom staff. Finding an alternative to redundancies has also helped councils avoid expensive one-off costs of settlements with staff – and tough disputes with public sector unions. Sir Steve Bullock, chair of the LGA HR panel, said: ‘These findings show how councils have continued their drive to offer better value for money. ‘Almost 7,000 jobs have gone in the last six months alone and as the effects of the recession continue to be felt, we fully expect councils to keep on cutting jobs over the course of the next 12 months.' He said making savings while protecting frontline services had also been achieved while keeping council tax down. ‘Despite this, local government has delivered the lowest council tax rise for more than a decade and is continuing to make big savings.'

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FINANCE

Council pay bill cut by 3.6% in '09

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