South Staffordshire Council has launched a voluntary redundancy scheme as it struggles to prepare for budget cuts of more than £2.5 million over the next three years.

Chief executive Steve Winterflood today set out a programme of proposed cuts, due for councillors’ approval in early 2011, to save £430,000.

If approved, a black hole of a further £2 million will remain and redundancies may account for much of the remaining bill. Staff were briefed this week on cuts and have until January 31 to apply for redundancy.

A panel will be created to determine which applications are accepted as the number of applicants, as well as departments staff work in, will shape future cuts.

The council has made savings of more than £2 million over the last two years and bosses argue there is no waste left to be cut.

Mr Winterflood said: “At this stage we cannot put a number on how many staff will be involved.

“We are not saying this is going to be plain sailing, we want to keep services going and it is going to be tough. We want as few compulsory redundancies as possible.”

Council leader Brian Edwards added: “This is the worst it has ever been, it’s a position we haven’t found ourselves in for 28 years.”

Initial moves include a five per cent increase in fees for non-members at council-run leisure centres, saving £54,000, outsourcing of pest control services to save £80,000 and a shared services maintenance deal with South Staffordshire Housing Association, saving £30,000.

Performance-related pay for leisure services managers will also be scrapped.

Mr Winterflood and Phil Cooper, the council’s chief finance officer, have joined councillor Edwards in criticising the government for hitting district councils harder than other public sector bodies.

Mr Cooper described government publications detailing ‘spending power’ cuts of around six per cent as “an elaborate piece of spin”, pointing out that the council faces real terms budget cuts of 35 per cent, £2.5 million.

Responsibility for concessionary travel for the elderly has been transferred to Staffordshire County Council, resulting in a £1 million budget cut.

Mr Cooper said almost £600,000 of this was used to fund travel tokens, a service the county council will not adopt, meaning more than half of the amount deducted is “unjust.”