ALMOST 1,000 jobs are to be lost at Scotland's second largest council in a services overhaul aimed at cutting costs of £107 million.

 

Most jobs to be lost will be at senior staff at Edinburgh City Council, with a 25 per cent reduction of managers.

The council has said it needed a widespread programme of change.

It comes as Glasgow City Council announced cuts of 3,000 jobs within three years with savings in excess of £100m to be found over the next two years.

The Edinburgh report follows an announcement earlier in the year that the council is to overhaul the organisation's structure and the way it delivers its services in an effort to become more efficient while addressing significant financial challenges.

The revamp will see the creation of a new operating model that will provide services through four localities, with more emphasis on local decision-making and closer working with partners such as Police Scotland and NHS Lothian.

The council must reduce costs of at least £107m over the next five years.

Worse than predicted grant settlements, failure, failure to deliver savings agreed in previous year's budgets, unresolved overspends in health and social care, and increased demographic pressures beyond the level currently provided for could add to this.

The proposed restructuring to move to a four localities model will lead to the reduction of 946 roles.

The latest proposals recommend developing revised terms of voluntary release, along with the creation of a new career change service to support those affected by the changes as they move to new roles.

If agreed next week the recommendations will then be taken forward for consultation with trade unions and staff.

In order to protect staff on lower pay, a new minimum early release payment has been proposed.

Employees will have the option to accept early release terms above the statutory requirements, taking into account the number of years' service and whether they have immediate access to a pension.

The new career change service will be run by the council in partnership with a specialist external provider.

This service will help to identify any other opportunities that may exist within the organisation and offer expert guidance to help employees move to roles outside of the council.

Practical training covering themes such as developing CVs, interview skills, managing change and wellbeing will be offered.

Those with other aspirations, such as setting up their own business or going into further education, will also receive guidance to help them towards these goals.

Convener of the Finance and Resources Committee, Councillor Alasdair Rankin, said: "The Council is facing unprecedented financial challenges and we have no choice but to change the way we work if we are to protect front line services for the people of Edinburgh.

"By simplifying the Council's structure we can focus more on local decision making and respond more quickly and efficiently to meet the needs of our citizens. This will also help us to work better with our partner organisations, many of whom use a similar, locality-based structure.

"Modernising and streamlining our processes will reduce the number of roles across the Council. I appreciate that change on this scale can be unsettling for staff and it is vital that we make sure those affected are given support to explore their options for the future. Making sure that employees on lower pay scales are protected if they choose to accept voluntary redundancy is also a key priority.

"We will continue to engage and consult with staff and trade unions as these proposals are developed further."

There are four key risks that could make the financial gap even greater: