Cheshire East council is planning to axe 1,000 jobs over the next three years. The authority said by shedding a sixth of its 6,300 workforce it will cut £28m – 20 per cent – from its annual wage bill.

Council leader Michael Jones said he hopes the reduction could be achieved by natural turnover – as people leave or retire – rather than large-scale redundancies.

On top of this, the council hopes to transfer a further 1,000 staff to new social enterprises, staff mutuals and arms-length companies owned by the council, as well as the voluntary and private sector.

Coun Jones said the cuts would keep only the most talented staff.

He said: “As a good local employer, we will do all we can to support our staff through these changes. This will include finding suitable alternative work, where necessary, and investing in retraining them to keep their skills up to date.

“Our bold, but careful approach will give priority to protecting essential front line jobs, and to investing in good-quality, value-for-money services.”

About 350 job cuts have been identified in the council’s budget 2013-16, revealed at the cabinet meeting on Monday.

Other budget highlights are:

  • A two-year freeze on council tax
  • Selling off council-owned land and buildings to raise £12m per year, maintaining council reserves of £13.2m
  • Borrowing £38m to pay for on-going capital projects (£25m) and new schemes (£13m)
  • Investing to help build 27,000 new homes and create 20,000 jobs by 2030.
  • Spending £25m on roads, including filling 50,000 potholes and funding for relief road projects for the airport and Poynton, and the A556 m-way project.
  • Joint funding with AstraZeneca for a new science park in Alderley, improved contracts for building and property services, facilities management and cleaning, waste services and car parking and social care services.

Coun Peter Raynes, cabinet member for finances, said in his budget report: “The council is committed to maximising value for money and minimising the tax burden on residents.

“But this approach means local government must adapt to provide essential services to a standard that can be afforded.”