A RECRUITMENT freeze has been imposed by managers at Oxfordshire County Council to help combat a forecasted £11m budget shortfall.

In a message to staff at the authority, seen by the Oxford Mail, chief executive Joanna Simons on Thursday described the situation as “very serious.”

Ms Simons said the council’s money problems were due to increased demand for services to support vulnerable adults and children.

Ms Simons’ announcement of a recruitment freeze was accompanied by news that all departments forecast to underspend would have their budgets reduced.

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The chief executive also said a review would be carried out of all casual, interim and agency staff, and appealed to staff for other ideas on how to cut costs.

She told staff: “I know that many of you will be worried about your jobs and we will do everything we can to support those who are affected.”

By the end of March, the council is forecast to have overspent by 2.6 per cent on its £419.5m budget for the 2014/2015 period.

Carrying the overspend into the next year was not an option, Ms Simons said, because to do so would wipe out the council’s reserves.

Ms Simons’ warning came amid fears that Chancellor George Osborne is set to further slash funding for councils in his forthcoming Autumn Statement on Wednesday.

Deputy leader of the county council Rodney Rose said: “We’ve got two choices, cut our spending or increase our income.

“I can’t be optimistic that we will suddenly get a big handout from the Government.”

He added that the council would have to look at services that it is not obliged to supply by law, such as road maintenance and bus subsidies.

The situation was last nightbranded “desperate” by county council leaders and Oxford East MP Andrew Smith pledged to write an “urgent plea” to the Chancellor for more funding. Mr Smith said: “This is very worrying news, not only for council staff, but for people who use its services.

“I am today writing to the Chancellor of the Exchequer with an urgent plea to do something about this in his Autumn Statement next week.”

County council spokesman Paul Smith said that by 2018 the authority will have had to find savings of £256m since 2010. Final figures for overspends for all council departments would be confirmed in June he said, after the end of the financial year in March.

Of the £11m shortfall, Mr Smith added: “It may be that the picture changes in these areas between now and then, as well as in the areas that are currently overspending.”

County council Labour group leader Liz Brighouse called for business rates and income tax to be transferred to local government.

She said: “We cannot go on cutting and cutting. We have to make sure those essential services are in place and that they are good quality. To do that we need to be free to fund our own services.”

The Oxford Mail approached Conservative MPs Nicola Blackwood, Sir Tony Baldry and Prime Minister David Cameron but they did not comment. But Minister for Local Government Kris Hopkins said every council needed to “do its bit” to cut spending and reduce the national deficit.

He said: “Since 2010 this Government has delivered a fair settlement to every part of the country.

“It has also given [councils] greater financial independence so they can deliver sensible savings and protect frontline services.”

'The best way to save money is not to spend it'

Taken from Joanna Simon's letter: ‘We are facing a very serious problem with this year’s finances due to a big increase in demand for essential services for vulnerable adults and children.

As I write this we are heading towards an £11m overspend at the end of March unless we take action now to reduce costs.

We cannot afford to end the year with this level of overspending because of the knock-on to next year and the fact that it would effectively use up most of our reserves – and we need to keep a safe level of money in the bank in case of major emergencies such as another bad winter.

I am therefore letting you know about steps that we are taking as managers, and also asking for your help to do your bit to keep our costs down. So, with immediate effect, there will be:

  • A recruitment freeze and review of all existing vacancies – only essential frontline social care posts will be exempted
  • A review of all casual, agency and interim staff appointments
  • This year’s budgets will be reduced wherever there are any underspends
  • Everyone with budget responsibilities should consider whether expenditure is really necessary and essential – and stop it if possible.

I would ask everyone to think of ways to make further savings this year – however small – and I would ask managers to implement these immediately where possible.

The last time that we had to gear up for major savings was in 2010 and we had a fantastic response from staff with over 700 ideas put forward.

I would also ask that if you see waste or want to question expenditure, have the confidence to challenge it. It’s obvious, but the best way to save money is not to spend it!

From what we know of national finances already it seems clear that the next four years will be as difficult again so when the [county] cabinet publishes its budget proposals on December 8 we will be looking for an additional £27m next year alone to meet these needs.

This is on top of the savings already agreed last year in the four-year financial plan.

I know that many of you will be worried about your jobs and we will do everything we can to support those who are affected. It’s also important to remember that these savings will occur over a four-year period and change will not all happen overnight.

I realise that this is a rather bleak message in the run-up to Christmas but wanted you to hear the reality and emphasise that there are things we can all be doing to help the council’s finances now. In the meantime, thank you again for all your hard work and commitment to the council and public service.

Chief executive Joanna Simons

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