Fewer roads are being repaired in Cumbria
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More than 500 council road repair jobs in Cumbria are to be privatised.
Cumbria County Council says a drastic reduction in government grants is forcing it to privatise its construction services unit.
The unit carries out road repairs, road cleaning and maintains street lighting.
County councillor Tim Stoddard, who is responsible for contract services, said: "We have been suffering from a reduction in government grants for five or six years.
"The cash we have received from government has actually dropped in real terms by 30%.
Council coffers
"This means we are actually carrying out less work than we were last year.
"A lot of remedial work is not being done and we are having to claw money from elsewhere to be able to do what was done."
Mr Stoddard said cash from the sell-off will go back into council coffers.
He said existing staff would retain their employment terms and conditions should any sale go ahead.
The council has already come under fire for plans to sell off popular beauty spots to save money.
The council is looking again at proposals to sell off the Talkin Tarn site despite complaints from environmentalists and residents.