Title

Local government has become the latest victim of the recession, as thousands of council jobs are lost.

And the predictions from the Chartered Institute of Personnel and Development (CIPD) and financial services firm, KPMG, claim this is just the tip of the iceberg.

Redundancies in the last three months mean the public sector has recorded a ‘net employment intentions' figure – the number of employers planning to make redundancies, balanced against those planning to hire –  of minus-three.

CIPD chief economist, John Philpott, said: ‘Here is evidence for the first time that the public sector is beginning to feel the pain.

‘Following last month's budget, this is certain to become a regular phenomenon for taxpayer-funded jobs. Indeed, the current figures for the public sector will look like a walk in the park as the drive to balance the books gets under way in earnest.'

A survey by the Local Government Association this week revealed 6,700 jobs were cut at councils in England over the last six months in management and frontline  positions.
And 83% of London boroughs, 73% of North East councils, and 67% of South East councils surveyed planned to make more job cuts this year. LGA vice-chairman, Sir Jeremy Beecham, said: ‘As the recession continues to bite hard, we fully expect councils to keep on cutting jobs over the course of the next 12 months.

‘Councils are being hit by a perfect storm caused by the recession.

‘Income is dropping away fast at a time when more and more people are turning to councils to help them through tough times.'

Councils have lost millions of pounds through reduced parking and planning revenue, lower returns on investments, and the property slump.

Sir Jeremy said it was now vital this year's pay settlement was affordable to the taxpayer and the councils.