Champions, not chumps

Reporter: Richard Hooton
Date published: 07 December 2010


Huge cuts to senior management as council proposes radical changes to meet the future

OLDHAM Council is to reposition itself as a “championing council” as it slims down to save money.

Council chiefs have announced big reductions in senior management as they plan to create a leaner organisation in preparation for massive cuts.

A new operating framework was agreed at a special cabinet meeting yesterday as a programme to become a “championing council” was set — described as “supporting and promoting the borough and its citizens where we will champion local services and local choices”.

The council will provide fewer services directly and commission more from private companies and organisations such as co-operatives, social enterprises and voluntary groups.

It will also team up with other councils to commission some services to give greater bargaining powers.

The axe is hanging over 800 jobs to save £45 million over two years but more top management posts will go to help.

Assistant chief executive Carolyn Wilkins told cabinet a smaller management team would save more than £2 million with six directors reduced to four and 26 assistant directors becoming 16 assistant executive directors, while the tiers of management will be halved from 10 to five.

But council leader Councillor Howard Sykes told chief executive Charlie Parker he wanted him to go even further to save at least another £1 million.

He said it was right in these tough economic times to reduce the management structure — and was backed by cabinet colleagues who agreed for more savings to come before them in the New Year.

Chief of staff Clare Fish said the council would be leaner, stronger, resilient and more creative. A report to cabinet explained how a considerable amount of work has taken place over the last two years as the council moved through a period of recovery and improvement — and was now ready for the final stage of repositioning.

The scale of public sector change — including David Cameron’s Big Society theme — and the economic climate means the council has to adapt.

The new operating framework spells out the transition between being the local provider of services to promoting and maintaining the well-being of Oldham.

Councillor Sykes said: “It is about getting Oldham Council into the best position to face up to its challenges. We know there are tough decisions to be made — that’s true of every council across the country.

“What we are doing is putting serious thought into how we become the council we need to be in the future.

“Inevitably, this will mean we become a leaner organisation, and that we employ fewer staff directly, but our focus on making sure Oldham citizens get the services they require remains.”

Councillor Mohammed Masud said: “This is the right move. The council’s role in the future is to help and assist people to become more independent rather than being dependent on the council.”

He added that it will also protect the public purse to ensure resources are used wisely, helping every single resident. Councillor Kay Knox said: “It’s absolutely vital to make sure we look after our residents and the borough and this report makes sure we live within our means.

“We are well on our way to making sure that within the borough we are keeping within the resources we have to be spending well, looking after the most vulnerable and creating community spirit.”

Deputy leader Councillor Jackie Stanton said: “We cannot underestimate the pace of change that local government and the public sector are about to go.

“We can’t do what Oldham has traditionally done in the past and sit on the sidelines watching and waiting to see what happens. The borough will be at the front leading that change and not following.”

An announcement on how much councils will receive in Government grants is expected on Thursday with local authorities braced for a 28 per cent reduction in their spending over the next four years.

Cabinet also approved a range of budget options, which will deliver almost £16 million in efficiencies, savings and increased income — on top of the £32 million of budget savings already achieved in the current and previous year.