EVERY member of staff at Northumberland County Council offered voluntary redundancy

In an email to all employees from interim chief executive Rick O’Farrell, he blames rising inflation and increased fuel bills for the financial black hole.

It is understood that £5.2m has already been set aside to cover some expected inflation, so the council is now set to overspend its budget by £12m.

Mr O’Farrell states that “these are difficult times for all of us,” and those factors are “having a major impact on the council’s budget.”

He adds: “We can’t simply draw down from reserves, so we need all of you to work with us to feed in ideas for how we can save money. The council has agreed to reintroduce the voluntary redundancy scheme for a limited period to help with future organisational planning.

“This opportunity is open to all who wish to make an application, and the purpose of this briefing is to advise all employees of the timescales and application process.”

Earlier this year, council leader Glen Sanderson said he was looking to shave £1 million off the council’s wage bill after figures revealed that the council pays 20 high-up employees more than £100,000 a year – the highest of any council in the North East.

At the time, Coun Sanderson explained that he hoped the money would be saved by implementing a new management structure and ending the authority’s reliance on interim executives.

He added: “I will not ask anybody to leave involuntarily. If there has to be redundancies, I will want them to be voluntary.

"The last thing I want to do is upset or hurt the staff who have been so supportive. That is really important to me.”

Northumberland Conservatives, the council’s largest party, blamed the issues behind the cost of living crisis for the council’s financial difficulties.

A spokesman for the party said: “Northumberland County Council is affected by the same issues that are facing most people, authorities and businesses – including the cost of fuel and general high inflation rates.

“These will be much higher than anyone thought just a few months ago. We have a fantastic team working hard whose focus is to provide excellent service to our residents, businesses and our many visitors.

“There are many challenges due to the pandemic and other events outside our control such as a terrible, long-running war in Europe. We are looking at various ways in which to deal with any financial pressures the council comes under and how we can mitigate against them.

“These are reviewed regularly. It is only right that we make our staff and the wider community aware of the work we are doing to drive the county forward, and any hurdles put in our way due to the financial concerns at such a difficult time for all.”

A spokesperson for Northumberland County Council said: "The cost of many of the things the council needs to deliver its services – from building materials to energy – has increased significantly and we need to respond to those pressures.

“We have a legal duty to set a balanced budget and ensure sound financial management. That is why we are taking action now to mitigate against further overspend.”