Council funding crisis: Leaders write to First Minister over budget ‘cut’

Scotland’s Council Leaders have written to the First Minister expressing their collective deep concern about the impacts of the financial settlement that Scottish Government has proposed for Local Government as part of this year’s Scottish Budget.

At a special meeting of Leaders on Monday 16th December, it was unanimously agreed that the budget settlement as it stands means another real terms cut to Councils’ core funding, at a time when many in our communities are struggling with the impact of rocketing prices across fuel, food and other bills, and facing unprecedented levels of poverty in a modern era, in an era where Local Government continues to provide the targeted and ongoing support deemed so vital to those most in need.

Council Leaders feel that this budget settlement will have a detrimental impact on vital local services, on our ability to focus the necessary resources and supports to our communities and on those who are already impacted by this cost-of-living crisis.

Leaders added that significantly, it will lead to the loss of jobs, both within Local Authorities and within the local companies who supply goods and services to councils and are reliant on their contracts to employ local people.

In the letter Leaders did acknowledge the impact of inflation, the UK Government’s mini-budget and global economic factors that are continuing to weigh heavily on the Scottish Government’s budgets and spending plans.

Given the pressures facing Councils, Leaders are keen this year to meet with Ministers so they can hear concerns first-hand, look at possible solutions and to work collaboratively with Government to enable Local Government to continue to deliver vital services to our communities.

CWU lambasts Royal Mail job cuts ‘scare tactics’

Postal workers union CWU has responded defiantly to an announcement by Royal Mail’s parent company International Distribution Services PLC’s that they plan to slash up to SIX THOUSAND jobs due to mounting losses.

The union says Royal Mail’s announcement is nothing more than ‘their latest misjudged scare tactic to threaten members into submission’.

CWU said: ‘We (CWU) will meet Royal Mail Group today because we continue to act in good faith. We will also bring you a fuller update from the unions leadership later as well.’

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CWU General Secretary Dave Ward said: “The announcement is the result of gross mismanagement and a failed business agenda of ending daily deliveries, a wholesale levelling-down of the terms, pay and conditions of postal workers, and turning Royal Mail into a gig economy style parcel courier.

“What the company should be doing is abandoning its asset-stripping strategy and building the future based on utilising the competitive edge it already has in its deliveries to 32 million addresses across the country.

“The CWU is calling for an urgent meeting with the Board and will put forward an alternative business plan at that meeting.

“This announcement is holding postal workers to ransom for taking legal industrial action against a business approach that is not in the interests of workers, customers or the future of Royal Mail. This is no way to build a company.”

450 jobs to go as BBC News plans to ‘modernise’

BBC News has outlined plans to ‘modernise its newsroom to respond to changing audience needs, ensure it is providing a truly universal service, and complete its £80m savings target’. The National Union of Journalists say the resultant job cuts are ‘part of an existential threat to the BBC’.

The BBC remains the UK’s most trusted and most consumed news service – but audience behaviour is changing rapidly, with audiences for linear TV continuing to decline, especially amongst 16-34 year-olds.

The BBC newsroom will be reorganised along a ‘story-led’ model, focusing on news stories more than on programmes or platforms. This is designed to reduce duplication and to ensure that BBC journalism is making as much impact as possible with a variety of audiences, rather than stories only appearing on one outlet or platform.

The new way of working will mean a changed focus for the news agenda, to ensure it is tailored to subjects that matter most to the audience.

The changes mean there will be a reduction in the overall number of stories covered.

There will be further investment in digital news, with a new version of the BBC News app, which will be more intuitive, more visual, and with increased personalisation.

More BBC journalists will be based outside London in future.

Fran Unsworth, Director of News and Current Affairs, says: “The BBC has to face up to the changing way audiences are using us. We have to adapt and ensure we continue to be the world’s most trusted news organisation, but crucially, one which is also relevant for the people we are not currently reaching.

“We need to reshape BBC News for the next decade in a way which saves substantial amounts of money. We are spending too much of our resources on traditional linear broadcasting and not enough on digital.

“Our duty as a publicly funded broadcaster is to inform, educate, and entertain every citizen. But there are many people in this country that we are not serving well enough.

“I believe that we have a vital role to play locally, nationally and internationally. In fact, we are fundamental to contributing to a healthy democracy in the UK and around the world. If we adapt we can continue to be the most important news organisation in the world.”

As part of the reorganisation, and having carefully considered the audience data, the BBC is also proposing to make the following changes to its output:

  • As confirmed last week, the Victoria Derbyshire programme on television will close later this year. We will continue to produce the kind of journalism the show has been making, but it is no longer cost-effective to produce for TV
  • There will be a reduction in the number of films produced by Newsnight, which will lead to post closures. The programme will stay at the same length and timing and will continue to deliver high quality journalism on the day’s events and beyond
  • There will be post closures at 5 live driven by the changing listening habits of the audience and demand for digital content
  • World Update on World Service English will be closed, alongside other schedule changes. This is in addition to the changes to Asian language services outlined last year
  • There will be a review of the number of presenters we have and how they work

The different changes to how BBC News will work will lead to an estimated 450 job losses.

Firm plans for post closures relating to the new ways of working will be put forward before the summer, following further trials of the new model.

BBC News needs to save £80m by 2022. This is driven by pressures across the BBC, including the last licence fee settlement. BBC News has already saved about half of this amount and the changes announced today should complete the savings.

The BBC will maintain the ring-fenced spending on the BBC World Service and the changes announced today do not directly affect the services being funded by the UK Government.

The latest announcement from the BBC brings the total number of job losses proposed in the World Service, radio and News to more than 500, says the NUJ. This amounts to an ‘existential threat to the BBC at the same time the corporation faces an ideological attack from the heart of government’.

Following the 70 jobs losses at the World Service, announced at Christmas, a further 380 will go from News and 60 from Network Radio.

The proposed impact on programming includes the closure of the Victoria Derbyshire show, with some roles retained to continue similar digital content under the BBC News brand. Newsnight will lose 12 posts, halve production of its four weekly in-depth films and reduce spend on investigative journalism. Twelve posts will go at 5Live. There will be more sharing of radio bulletins across the BBC, with a loss of 12 posts. Five news presenter posts will be cut.

There are also plans to fundamentally change the way in which journalism and news programming is created, with further pilots over the next three months planned for a new operational model that the BBC estimates will lead to 300 further job cuts. BBC News division has already made £40m savings and today’s proposals are intended to reach the division’s annual £80 million share of £800million of BBC-wide cuts.

Michelle Stanistreet, NUJ general secretary, said: “These damaging cuts are part of an existential threat to the BBC, and a direct consequence of the last disastrous, secret licence fee deal the BBC agreed with the government. This is before the impact of taking over responsibility for the over-75s licences kicks in.

“Against this backdrop, the BBC’s very existence is being threatened with public service broadcasting under unprecedented threat. If the government goes ahead and decriminalises non-payment of the licence fee, we know the impact will be further losses for the BBC of around £200m a year and increased collection costs of £45m.

“Such a politically motivated move – dressed up as concern for the mythical imprisonment of vulnerable members of society – will serve to undermine one of the UK’s strongest success stories, emasculating a brand renowned and respected across the globe.

“The BBC is the single biggest driver of the creative economies, and a vital part of the British economy. If there is a desire to change the licence fee model, then that should be properly considered and consulted upon, with no changes until a credible alternative is found, one that fulfils the BBC’s public service values and the key principle of universality. The government should be supporting and properly resourcing the corporation – an organisation that wields significant soft power across the globe – instead of indulging in ideological retribution.

“That is why the next BBC director general must be a champion for the corporation, someone capable of fighting for this broadcasting powerhouse, someone able to stand up against any future political interference. The BBC’s detractors and competitors in the media are scenting blood – we’ve all seen the headlines and read the opinion pieces with unnamed sources dripping poison. We can all see which way the wind is blowing.

“The corporation faces a truly tough time. The NUJ will do all it can to defend public service broadcasting and protect our members’ jobs from these politically-motivated attacks. And that includes refuting commentary that seeks to link overdue settlements to women who have been discriminated against and unlawfully denied equal pay with job cuts – a crass and ill-informed red herring.”
Paul Siegert, NUJ national broadcasting organiser, said:

“Today’s announcement is just the latest in a decade of cuts made by the BBC. The proposal for more than 500 posts to go in the next 12 months will put those remaining at the BBC under even more strain, with increased workloads and further workplace stress inevitable. The NUJ has requested that the BBC provides an Equality Impact Assessment of these cuts and shares it with the unions as soon as possible.

“We have major concerns that the new ways of working planned across the BBC’s News Division could lead to a fall in quality and would urge the BBC to ensure they are audience-informed and not audience-led. It is the duty of a public service broadcaster to offer something different rather than simply chasing an audience like their commercial rivals.

“The NUJ remains opposed to any compulsory redundancies and urges the BBC to work with the unions in ensuring the staff who are at risk can be redeployed. The BBC’s redeployment policy and processes must be taken seriously and there must be an immediate freeze on external recruitment.”

Tracy Brabin MP, Labour’s shadow digital, culture and media secretary, responding to BBC News jobs cuts, said: “High-quality and investigative journalism is what the public rightfully expect from the BBC and these cuts will send shockwaves around the Corporation and journalism in this country.

“BBC News already faces huge challenges, in particular a low viewership among under-35s and working class communities. That it is now cutting award-winning programming such the Victoria Derbyshire Show and BBC Radio News – both of which bring news to audiences that others can’t reach – raises serious concerns about the impact of the cuts the BBC are having to carry out. My thoughts are with those who work hard to provide public service broadcasting and face uncertain futures today through no fault of their own.”

700 more jobs to go at Centrica

Scottish Gas owner Centrica plans to cut around 700 management and back office jobs under previously announced reductions as it faces “growing challenges,” the company announced this week.

The company said staff had been informed about the job losses, which are part of its ‘ongoing transformation’.

A Centrica spokesman said: “This difficult decision was made because we need to respond to the growing challenges we face. The energy market is going through continued rapid change, competition is fierce, our energy customers are leaving us and we’re operating under a price cap.

“Over the next 45 days, as part of a full consultation process, we will discuss the proposals and seek the views of employees and their representatives.”

Responding to the latest round of job cuts in Centrica, GMB Scotland Organiser Hazel Nolan said: “It’s the continued collapse of a once great British institution ahead of what will surely be a set of disastrous results next month.

“Iain Conn (Centrca’s CEO) is battling to save his skin on the back of a loyal workforce – thousands of livelihoods have already been lost and thousands more will pay the price for Conn’s rotten leadership.

“Let’s be clear that without intervention, sooner or later Scotland will suffer more pain; we expect a continued wave of cuts in the months to come and that’s more bad news for the fragile Scottish economy

“Iain Conn cannot keep cutting his way out of a crisis, Centrica will have to come forward with a credible recovery plan that reverses years of customer decline, defends jobs and works for the public interest.”

UNISON national energy officer Matt Lay said: “This is another terrible blow for a workforce that’s already seen hundreds of jobs go. It’s a catastrophe being repeated up and down the country as all the major energy suppliers axe staff in a desperate attempt to stay afloat.

“But it doesn’t have to be this way. If the government took the retail arms of the big six energy firms into public ownership these jobs could be saved. The staff could then help us all go green and ensure the UK meets its target to be carbon neutral by 2050.”

Earlier this week UNISON published Power to the People, a report calling on the government to nationalise the parts of the big six energy firms that sell energy to customers to help the UK hit its carbon neutral target by 2050.

The big six energy firms are British Gas (Centrica), SSE, E.ON, EDF Energy, Npower (Innogy) and Scottish Power (Iberdrola).

“Obscene”: Gas boss pockets 44% pay increase while workers worry over job cuts

In the wake of fresh job cuts in energy giant Centrica, GMB Scotland has  branded Chief Executive Iain Conn’s 44 per cent pay increase as ‘obscene’. Continue reading “Obscene”: Gas boss pockets 44% pay increase while workers worry over job cuts

‘Meltdown’: Union fears 3000 council job losses

UNISON says one on six council jobs could go

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Trade Union UNISON fears that over 3,000 jobs – one in every six Edinburgh council staff and three times as many jobs as first thought – will be slashed as the effects of accelerated budget cuts become clear, putting the council’s and the Scottish Government’s no compulsory redundancy pledge at risk.

The union has also re-launched its ‘Our City’s Not For Sale’ campaign as reports drawn up by officials put privatisation back on the agenda three years after councillors rejected mass privatisation plans.

“The effect of cuts on services and staff will be devastating as at least 15% of council employees could face being forced out of their jobs”, warned Amanda Kerr, UNISON Edinburgh City branch secretary. “Losing this amount of staff will decimate the services we provide and the public rely on to the point where they would be unrecognisable.

“It is now time for the politicians to stand up for the pledges they were elected on and support UNISON in the fight to save public services in Edinburgh for future generations.”

Lead Edinburgh UNISON negotiator Tom Connolly warned of the effect on services: “Every job lost is a service lost, a school closed, a care home closed, young and old put at risk. UNISON will defend these services and any compulsory redundancies will trigger our longstanding policy to ballot members on action.”

UNISON is calling for meaningful consultation and will demand that the council honours its no compulsory redundancy pledge and its ‘presumption’ against privatisation.

“If there is the political will to save Edinburgh’s services from these vicious government cuts, then councillors need to make sure that officials fully understand that”, said branch president John Stevenson, calling again on the Scottish Government to step in with emergency money to save services while they look at a fairer funding system.

“There has been a deafening silence on the massive cuts local councils have faced with 40,000 jobs lost in the last few years. The government needs to face up to the crisis and make funding available before services disappear for ever.”

UNISON will lobby the Council’s Finance and Resources Committee next Thursday (24 September).

For further information visit http://www.unison-edinburgh.org.uk/citynotforsale/