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Two councils have announced efficiency savings running into millions of pounds that will not hit public services. As national politicians argued over where the spending axe should fall, Newham LBC and new unitary Cheshire West and Chester Council revealed plans to overhaul costs. Newham revealed the latest stage of a three-year cost-cutting drive which is on track to save £23m in this financial year and £31m in 2010-11. Relocating to a single back-office headquarters, reducing staff posts by 700 and tackling chronic absence have been key to making the savings. Joe Duckworth, Newham's chief executive, said: ‘We are driving down administrative costs, which have allowed significant sums to be invested next year in cleaner and safer streets, the top priorities for residents. Against this, the authority has been able to deliver a 0% increase to council tax while investing in the services that residents want. Unnecessary layers of management have been removed to improve decision-making and reduce bureaucracy. ‘This has enabled us to identify £70m in savings over a three-year period, in addition to ensuring productivity is increased, ncluding channelling an additional £10m into helping make streets safer and roads cleaner.' Cheshire West and Chester Council announced a major structure review designed to slash costs while improving frontline services. A report revealed 466 staff have been granted voluntary redundancy and will leave the authority by 30 September. It will cost the council an estimated £19m – to be funded with the help of £5.5m from general reserves, but will generate annual savings of £13.5m a year. Council leader, Mike Jones, stressed: ‘The important criteria in making these difficult decisions have been that no frontline service will be affected and prudent management of our finances to keep council tax below the level of inflation.'

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WHITEHALL

Making savings with 'no cost' to services

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