Internal restructuring
United Kingdom
North East; Northumberland and Tyne and Wear; Tyneside
Location of affected unit(s)
Public Administration And Defence
Public Administration And Defence; Compulsory Social Security
Public Administration And Defence; Compulsory Social Security
84 - Public administration and defence; compulsory social security

200 jobs
Number of planned job losses
Job loss
Announcement Date
1 March 2006
Employment effect (start)
Foreseen end date


A Tyneside council has reaffirmed it may have to cut up to 200 jobs because of a budget crisis.

Newcastle City Council is struggling to save about £8m from its expected budget of £800m for the coming financial year. The authority says it has managed to agree a council tax rise of 2%, but is still faced with "difficult decisions." Council bosses say they are hopeful natural wastage will account for many of the reduced posts. Executive member for resources, Peter Allen, said:

"For the second year running this is one of the lowest council tax rises of any metropolitan authority in the country. The council has faced some difficult decisions, but it has listened to residents and produced a budget which will provide value for money, greater efficiency and better services.'"

A council spokesman added:

"Up to 192 full-time equivalent posts may be reduced. While the council cannot guarantee there will be no compulsory redundancies it will use natural wastage, redeployment and voluntary redundancy where appropriate to help achieve the reductions which equate to less than 2% cent of the workforce."



Eurofound (2006), Newcastle City Council, Internal restructuring in United Kingdom, factsheet number 63156, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/63156.