Greenwich Council is proposing to freeze the pay of its workers for the next four years.
A statutory consultation with workers must be undertaken before the freeze can be implemented but the council says that he measure would save £2.4 million – the equivalent of “77 front line jobs”.
The council is having to find savings after being warned to expect a 40% cut to its grant from central government.
Councillor Peter Brooks, Deputy Leader of the Council, commented:
“This is a consultation – not a firm decision. We are bracing ourselves for the Coalition Government’s spending review on October 20th and must allow ourselves the flexibility to be able to make savings where we can. We have always indicated that front line services must come first. We have been told to prepare for a 40% reduction in funds and have no choice but to plan for what might lie ahead.