Councils may join forces

Stafford and Cannock Chase councils could combine their behind-the-scenes work in a bid to save more than £1 million.

Some jobs would go, with the creation of a twin "back office" operation for both authorities. But council chiefs say it is not the first step to a full merger and the authorities would still deliver separate services.

Conservative-controlled Stafford Borough Council yesterday put on hold the appointment of a new chief executive to succeed retiring chief officer David Rawlings.

The move follows the Government's recent announcement of an increase of just one per cent in the grant it gives to the authority.

Mr Rawlings said the decision would enable the council to re-examine the financial consequences and discuss collaboration with neighbouring Cannock Chase District Council as a way of saving money.

Stafford Borough Council leader Councillor Judith Dalgarno said: "We have had an awful grant settlement from Government.

"We have also been told that in the next two years we will be given even less – just £46,000 extra in 2009.

"In addition, Government has told us to make a further £1m of savings in the next two years.

"Either we will have to cut services and increase council tax above inflation, both of which I am against, or make big savings in the cost of running the council.

"This is why we plan to have detailed discussions with Cannock Chase council about the scope to share our internal administration and reduce costs for both councils whilst we each continue to separately deliver and sustain services to our communities.

"Whilst these discussions are under way, it would be unwise to limit our options by appointing a new chief executive," she explained.

Mr Rawlings said: "There is no question of a merger. Neither council wishes to do that and it would be legally impossible as it stands."

He said the idea was to combine back offices in to a single team but was unlikely to see just one council headquarters for the two councils. "It will involve things the public does not see such as administration, audit, finance, information technology and data processing.

"No services delivered on the street would be affected," he added.

He emphasised that both authorities had to make substantial savings over the next two years.

"We have to find a way to streamline support services.

"It will mean rationalisation and reducing some jobs.

"It is not intended to do this by redundancies.

"Over a period of time people would be leaving through natural wastage.

"It should be possible to achieve savings without harsh effects on employees," he said.

l Stafford Borough Council received only a one per cent increase in grant for 2008-2009 – £86,000 – and faces rises of only 0.5 per cent the following year and 0.6 per cent in 2010-2011. The council must find savings of £1m over the two years from 2009-2010.

The authority still has to close a budget gap of £310,000 for 2008-2009 to deliver a council tax rise of 4.3 per cent in line with inflation.