Luton Borough Council to axe 365 jobs - with cuts to customer services, highways, neighbourhood enforcement and street lighting

Luton Borough Council has today announced major job losses and cuts to frontline services, after its finances were devastated by the coronavirus pandemic.
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Income from the council’s airport company has all but dried up since March.

The council's proposals include at least 365 jobs going - although some of these relate to its school meals service, with many part-time staff expected to transfer to schools or other meal providers.

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The council will also delete current vacant posts, offer voluntary redundancies, reduced hours and flexible retirement across the organisation.

Luton Borough CouncilLuton Borough Council
Luton Borough Council

A £500,000 saving will also be made through a review of the senior leadership team, which currently has three vacancies.

Leader of the council, Cllr Hazel Simmons MBE, said: “What we are looking at here is the prospect of further suffering for the people of Luton.

"As a result of coronavirus there is already so much misery in the town and behind these stark figures are individuals with livelihoods and families to care for.

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“These past few weeks have been the worst of my political career. The council has repeatedly called on central government to provide adequate emergency funding, but so far these pleas have fallen on deaf ears.

"If they continue to adopt this stance of indifference we will be forced to implement extreme savings measures to avoid the possibility of bankruptcy, which itself would have an even more destructive impact on services.

“Throughout this crisis council staff have shown unbelievable levels of dedication and sacrifice, yet now, through no fault of their own, a number of them are at risk of losing their jobs. It is an extremely bitter pill to swallow.”

The proposals include:

> A new customer services model reducing face to face contact, except for most vulnerable residents.

> Changes to the council tax support scheme.

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> Reductions in neighbourhood enforcement, public protection services and highways maintenance.

> Introducing charging for green waste collection.

> Energy savings on street lights.

> A reduction in adult social care and home care funding.

> Reduced funding for key preventative and mental health support services.

> Changes to travel support for adults and children who require it.

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> Reductions in funding for school improvement, youth advice and early years services.

As a result of Covid-19, the council has been faced with a £50m shortfall in its finances.. While money from the airport has been most affected, other income streams as well as business rates and council tax have also been hard hit.

The council is able to call on reserves, but still needs to take out almost £22m from the budget in order to fulfil its legal duty to balance the books.

Over £9m of savings have been identified through measures such as back office efficiencies, improving the way contracts are manged, savings from building closures and proposals to bring in more income.

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Cllr Simmons added: “To see some of the key proposals laid starkly before us is deeply shocking and to even contemplate them goes against everything I stand for.

"Each one of them will have a negative impact on frontline services.

"Unfortunately we have no choice but to do this unless we get government funding.

“We will, of course, still need to consult thoroughly on some of the proposals and are absolutely committed to limiting the effect they have. And I want people to still be assured that despite reductions in all areas of council spending, including areas such as children’s and adult’s services, our most vulnerable children, families and adults will still have access to the support they need.

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Councillor Andy Malcolm, portfolio holder for finance, blamed years of austerity for much of the disaster.

He said: “Our response to the crippling years of austerity, during which £130m of savings had to be made, was to create innovative income streams to decrease our reliance on government funding.

"Not only have we been able to keep the town afloat during these years, but our actions have been praised many times by the government – a government which is now proving itself to be unconcerned by our terrible plight.

“As has been the case in the past we have looked to the people of Luton for their solidarity and I am really grateful for those who have been engaging with us in the last few weeks.

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"We have received over 600 savings ideas sent in by residents who care passionately about the town.

"Many of these suggestions have been incorporated in the current proposals, but their inclusion only serves as a reminder of the desperate situation we are all experiencing.

“Even at this eleventh hour, further tragedy could be easily averted by the government showing that it genuinely cares about local communities such as ours and stepping in with the money that will avert this catastrophe.

"To put further pressure on government to respond, can I encourage you to sign the community petition, which can be found at www.luton.gov.uk? The more people who sign it, the harder it will be for our cries to be ignored.”

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Robin Porter, Chief Executive added: “I have never been more amazed and impressed by staff than at this current time. There are so many unsung heroes showing utter commitment to serving the people of Luton and working hard to improve the lives of residents.

“Knowing the utter dedication of officers has made a thankless task even more painful. To contemplate redundancies for people – and the ripple effect that will have on their families – is a real kick in the teeth. We have done all we can to limit the compulsory job cuts, but for each one that has to be made it represents unimaginable uncertainty and anxiety.

“There is no doubt that the whole of Luton is suffering a huge body blow. The economic impact of Covid-19 has already cut deep and will continue to do so. With job losses at the council and many other businesses throughout the town, there will be an increase in poverty to levels that will be hard to bear.

“Difficult though it may seem, I am confident that Luton will eventually come through these devastating cuts with confidence in the town unshaken and our resolve to find a better future for everyone undiminished.”

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While proposals have now been published, the council continues to look for more money saving ideas up until July 1, when the final emergency budget papers are published. Suggestions can be emailed to [email protected].

Visit www.luton.gov.uk/letstalk for more information (including the draft emergency budget details).