Jobs freeze at council

A jobs freeze and halt to all non-essential spending on supplies and services is to be introduced by Wyre Forest District Council.The move follows news the authority has a third of its investments, £9 million, tied up in Icelandic banks.

Authority bosses cannot currently withdraw any of the money.

Councillors have held a special meeting to discuss a financial report on the situation but claim there is currently "no need for crisis measures".

Ian Ward, who has prepared a report for the Local Government Association, has looked at the causes, possible consequences and solutions to the investment crisis.

But he has said the authority has "responded well to the developing situation" and taken regular steps to update members, staff and council taxpayers.

Now councillors have agreed to introduce a freeze on all non-essential spending on supplies and services and to restrict recruitment while protecting frontline services such as bin collections.

They have said the freeze will be imposed "until the position becomes clearer as to the exact impact on the council".

Mr Ward said in his five-page report: "There are sufficient funds available so that short-term borrowing or crisis measures will not be needed."

His report is expected to form part of further discussions which are to take place between the Local Government Association and central Government in their bid to recover investments by 123 UK local authorities totalling £919.6 million. Councillor John Campion, leader of Wyre Forest District Council, said today: "This is a very positive report and confirms the council has acted in accordance with advice from central Government and external financial advisors."