The reduction in local authority employment referred to was in manual grades and the bulk of it occurred as a result of the application of the voluntary redundancy early retirement scheme under which local authorities offered the terms of the redundancy package to staff. The level of employment in manual grades required by local authorities to maintain services is a matter for the authorities themselves.
A number of initiatives involving local authorities should lead to additional employment this year. These include the substantial increase in the public capital programme, which will lead to additional employment on roads, housing and sanitary services schemes; increased funding of social employment schemes, of which local authorities are substantial sponsors; and the development of projects under the county enterprise partnership boards, on which local authorities will be represented.