Adjusted Continuation of Service Budget for 2012/13 233.718
Available Resources 221.297 ———–
Funding Gap/New Savings Required 12.421
Members will note that the savings required of £12.421m relate to additional new savings during 2012/13. In addition, there will be a net additional (step-up) saving of £6.550m from the full year effect in 2012/13 of the 2011/12 savings plans, giving a total saving in 2012/13 of £18.971m.
With the scale of savings envisaged there will inevitably be a significant loss of jobs. The aim has been to avoid compulsory redundancy wherever possible and to ensure that as many staff as possible are able to leave voluntarily the voluntary severance package that was introduced in 2011/12 has been made available again for the 2012/13 budget round.
It is estimated that there will be around 400 jobs lost in total, split between 230 relating to new savings and 170 to step-up savings from 2011/12 plans. Current indications are that there will be about 40 budgeted vacant posts deleted, leaving around 360 jobs to be lost by voluntary means. In response to the invitation made to staff there have so far been around 250 expressions of interest, of which around 60 so far have turned into formal applications for voluntary early retirement, voluntary severance and other voluntary options.
Savings proposals have been the subject of consultation with trades unions, directorate consultative and safety committees and staff briefings as they have been worked up, and a “Tell Barbara” intranet site has been made available to staff to make suggestions about budget savings to the Chief Executive.
A summary of the new savings proposals that are recommended for acceptance as part of the 2012/13 revenue budget analysed by directorate and portfolio is shown in the following table :-