Newcastle City Council job cuts grow

Almost 50 extra jobs could be cut at Newcastle City Council, under a plan to “streamline” public services and make more use of artificial intelligence.

The authority says that up to 121 posts could now be affected by a reorganisation at the Civic Centre.

It was initially expected that around 75 jobs, just over one per cent of the local authority workforce, would be lost under proposals signed off earlier this year.

Bosses say that the measures will result in a £5.9 million-per-year saving, with IT, customer contact, and business support staff being centralised.

Consultation with council staff at risk of redundancy has now begun, though the authority said that “only a small number of redundancies are expected” as some of the job losses could be covered by deleting vacant posts.

Deputy council leader Mark Mitchell said that the reforms are “ essential if we are to maintain high-quality frontline services”.

Councillors were told on Thursday that the council was spending millions of pounds on outside consultants to deliver the redesign of its services, in the hope of delivering greater long-term savings.

A report to a scrutiny panel confirms that more than £7 million has been committed so far and that the council was “actively scaling down” such spending, but up to £2.5 million more could be allocated before March 2027.

Council finance chiefs must close a budget gap of more than £40 million over the next three years, amid continually rising demand and costs in areas like social care and children’s services, and officers say they are reviewing spending on third-party contracts and how AI can “reduce administrative burdens and help employees in delivering services more effectively”.

Coun Mitchell, whose Liberal Democrat administration inherited the transformation programme from its Labour predecessors in May and will present its first budget proposals in the coming weeks, said: “We have been in control of the council for four months and are delivering improvements people can see through their front window. Since taking over in May, we have already reopened park cafes, held some huge cultural events and invested in parks, youth services, housing repairs and playgrounds.

“This is the change people told us they wanted when our councillors spoke to residents on the doorstep and we are getting on with delivering it. However, the financial pressures facing local government are well known. Increased demand and rising costs mean difficult decisions need to be taken every year.

“If we want to protect the services people rely on most, we also need to make sure the council operates as efficiently and effectively as possible. Transformation of council services is essential if we are to maintain high-quality frontline services and we are not hesitating to take action.

“We are developing new ways of working to not only save money, but also create simpler, more consistent services and help build a council that is fit for the future. The benefits of this work are already being seen, including shorter waiting times in our contact centre and improvements in the speed of some social care processes.

“Our council officers are hardworking, dedicated public servants who serve residents every day. Anyone impacted by these proposals will be supported and consultation with employees and trade unions is continuing.”