Birmingham city council chief executive Stephen Hughes has warned that the council needs to reduce its overall expenditure by one third, which equates to £330m, over the next three to four years.
In an open letter sent to staff yesterday, Hughes said the council has already identified £90m annual savings on back-office costs, which will comprise any monies earned from the sale of the council’s assets.
Although £90m has been identified so far via cost-cutting exercises and selling assets, Hughes warned these savings would “go nowhere near far enough.”
More details of the cuts will become available following the government’s Comprehensive Spending Review on 20 October, when further savings of 30% will be required.
Hughes’ letter said: “It is really difficult to convey how big a problem that is.
“We are going to have to look at ideas that might have seemed inconceivable only a short time ago.
“There will inevitably be resistance to such changes – not just from staff and others directly affected, but from elected members and the public and media generally. We are going to be a much smaller organisation.”
lisa.pilkington@estatesgazette.com
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