Page last updated at 10:47 GMT, Monday, 21 December 2009

Job cuts despite council tax rise

Jobs are set to be lost despite a rise of nearly 3% in Nottingham council tax bills, officials have admitted.

The proposed 2.9% increase would pay for services for children and older people and deal with a fall in income, the ruling Labour group said.

They refused to detail the number of redundancies, but unions said they feared it could be in the hundreds.

The council denied the budget had been affected by the £42m it had invested in collapsed Icelandic banks.

Rising demand

Graham Chapman, deputy leader of Nottingham City Council, said the council was facing increasing costs at a time of falling revenue.

"We are actually spending more money, investing more money, than last year.

"But we are having to make reductions in some areas because of the massive pressures on child protection, large pressures with the growing numbers of elderly and disabled."

He added: "We have to respond to what is happening in society which means more demand for child protection and more old people to be catered for, which is all very expensive."

Mr Chapman said he could not discuss the specific number of job losses until unions had been consulted.

Unison said it would have to study the details of the proposals, but it was concerned the cuts could be of a similar scale as last year which saw 300 posts lost.

The budget will be discussed by the full council in the new year before it is finalised.

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