Newcastle City Council expects up to 121 posts to be affected by a reorganisation at the Civic Centre, up from the 75 originally planned under a major shake-up of services. The authority says the measures will save £5.9 million a year by centralising IT, customer contact, and business support staff.
More than 120 roles affected
Consultation with staff at risk of redundancy has begun, though the council said that “only a small number of redundancies are expected” because some losses could be covered by deleting vacant posts. The initial plan, signed off earlier this year, had expected around 75 jobs to go – just over one per cent of the local authority workforce.
Councillors were told on Thursday that the council was spending millions of pounds on outside consultants to redesign its services. A report to a scrutiny panel confirms that more than £7 million has been committed so far, with up to £2.5 million more possibly allocated before March 2027. The council said it was “actively scaling down” such spending.
Budget gap and AI plans
Finance chiefs must close a budget gap of more than £40 million over the next three years, amid rising demand and costs in areas like social care and children’s services. Officers say they are reviewing spending on third-party contracts and how AI can “reduce administrative burdens and help employees in delivering services more effectively”.
Deputy council leader Mark Mitchell said the reforms are “essential if we are to maintain high-quality frontline services”. His Liberal Democrat administration inherited the transformation programme from Labour in May and will present its first budget proposals in the coming weeks.
Councillor defends changes
Coun Mitchell said: “We have been in control of the council for four months and are delivering improvements people can see through their front window. Since taking over in May, we have already reopened park cafes, held some huge cultural events and invested in parks, youth services, housing repairs and playgrounds.”
He added: “Increased demand and rising costs mean difficult decisions need to be taken every year. Transformation of council services is essential if we are to maintain high-quality frontline services and we are not hesitating to take action.”
“We are developing new ways of working to not only save money, but also create simpler, more consistent services and help build a council that is fit for the future. Anyone impacted by these proposals will be supported and consultation with employees and trade unions is continuing.”
