Cash-strapped Powys County Council leaders have backed plans for a pay freeze for staff and redundancies over the next 12 months in a bid to save more than £5 million.

The council says £1.1 million of the savings will be found by freezing staff wages and £250,000 will come from the authority’s voluntary redundancy scheme within the next financial year.

The authority, which is the biggest employer in Powys employing 8,000, said the move was part of its plan to make £16 million of savings over the next four years.

At a meeting of full council in Llandrindod Wells yesterday, members voted in favour of the savings, which also include cutting the amount the authority pays its top 50 contractors to carry out work on its behalf.

Councillor Tony Thomas, the council’s board member for finance, said the council had identified £5.4 million of savings for the next financial year.

He said: “These proposals have been heavily influenced by the economic environment faced by the citizens and businesses of Powys, and the council itself.

“We have identified £5.4 million of savings over the next 12 months. They will include £400,000 being found from the delegated school’s budget because of the fall in pupil numbers.

“£1.1 million is provided from the reversal of the budget provision for the 2010/11 pay award for non teaching staff. This provision was made over 12 months ago when it was by no means certain that a pay freeze would apply. It now appears that any pay award is unlikely and, in effect, staff will take a real terms pay cut, given the current rate of inflation.

“£707,500 will be provided from savings from the council’s top 50 suppliers review. The council spends in excess of £60 million annually with 50 suppliers, predominantly in respect of social services and local environment services.”

He added: “£250,000 is anticipated from the voluntary redundancy scheme with a similar sum the following year. This is based on 20 staff taking advantage of the scheme and their post being deleted on the basis of tactical re-structuring.”

Savings will be made through car leasing and the “Paperless Powys” scheme.

By Anwen Evans