'SHOCKING': WNC invites its 2,500 staff to consider voluntary redundancy as it faces multimillion-pound budget crisis

WNC says it is grappling with increased demand for statutory services and rising operational costs.

According to WNC finance portfolio holder Malcolm Longley’s latest report presented to the full council last month (September), the financial gap that needs to be bridged for 2025/26 is £38.6 million.

These challenges are impacting the council’s ability to balance the books, both this financial year and into 2025/26.

The council has launched a new initiative aimed at ‘cutting costs while improving efficiency’, which includes offering voluntary redundancy, flexible retirement, and the option for staff to reduce their working hours.

Over 2,500 employees were briefed this week, with information on how to express interest in these options.

The council said no decisions will be made without ‘thorough consideration of the impact on services and the community’

WNC was created in 2021 after the former Northamptonshire County Council, along with Daventry, Northampton Borough, and South Northamptonshire councils, were abolished due to financial mismanagement. The county council had effectively gone bankrupt.

Cllr Mike Hallam, Cabinet Member for HR and Corporate Services, said: “Like other local authorities, we continue to face financial challenges due to increasing demand for statutory services, alongside rising operational and contract costs and we are exploring a range of options to address these pressures. “As part of our ongoing efforts to achieve a balanced budget, we have decided to open a process where colleagues can express an interest in options such as voluntary redundancy, flexible retirement, or reduced working hours. This is part of our wider programme, which focuses on improving the internal efficiency of operations while ensuring we continue to deliver essential services to our residents. “This is very much an exploratory process, and no decisions will be made without thorough consideration of the impact on services and the community. We are committed to protecting vital services, and this step forms part of a wider effort to manage our resources responsibly and sustainably. “Staff have been briefed on the options available and we are providing them with comprehensive guidance, information and support.”

The opposition Labour Group said the announcement is a ‘shocking’ development in the council’s ongoing financial debacle that has the risk of reducing ‘already stretched’ services.

The Labour Group said: “We are furious that WNC has had to come to asking staff to consider lowering their hours or taking money out of their pensions through flexible retirement after three years of the administration watching public money trickle away.

“Lots of our services are stretched as it is. Waiting times on phones can already be in upwards of 45 minutes, while case work for our social workers, revenue and benefit employees and our EHCP team continues to pile up. What we really cannot afford now is a largescale departure of essential workers.

“WNC has seen an embarrassing employee turnover rate since 2021 from several poor department restructures. We’re now in a situation where we have a top-heavy council, with 27 Assistant Directors all earning upwards of £90k and still not enough people to answer the phones. Some essential roles are still being carried out by agency staff.

“This all comes down to the poor handling of the public’s money by the Conservatives in the past three-and-a-half years and the management of our corporate affairs. It is simply not fair for them to now put this pressure on council staff and risk further damage to our services.

“There needs to be real change in how WNC’s corporate system is managed and operates. We are still a young authority with a long way to go, so to take such an extreme solution is a sign that things are not working or delivering as they are.”

However, Independent councillor Ian McCord said it is important to keep a ‘sense of perspective’ and ‘not to alarm’ employees or residents.

Councillor McCord said: “The council is at the early stages of budget setting for the financial year starting 1 April 25. It is normal practise to ask all departments for efficiency savings.

“Staffing is a major cost to WNC. If people wish to consider voluntary redundancy and it works for both the council and the individual then it will be considered. This is not new and has been part of the process to balance the budget every year, from what I understand WNC have just reminded staff of this long-standing policy.”