The city council CEO Stuart Love

MORE than 500 jobs are to be axed at the council in a response to unprecedented cuts in funding from central government.

Chief executive Stuart Love told an all-staff meeting at City Hall in Victoria on Tuesday that 520 roles are to be made redundant, out of total workforce of 3,720.

The city council said the positions will mostly be higher paid managers and senior officers with AI, artificial intelligence, being used to plug the gaps and a new programme of “embracing commercial opportunities”.

Little detail of what this means has been provided and the Labour opposition group said it is important to focus on what services will be lost.

The group is particularly concerned about the future of the “communities department” that it said had played “a vital role in bringing council services closer to residents”.

Trade union UNISON’s head of local government Mike Short said: “These proposed council cuts are deeply concerning. Job losses will threaten vital public services and increase the burden on staff who are already overstretched. The council must explore every possible alternative to compulsory redundancies and engage with unions to protect jobs, services, and livelihoods.”

The savings from job reductions, which amount to around £29million, are just one part of plugging the Westminster City Council’s £160million funding gap predicted by 2029, and which stems directly from the government’s “fairer funding” programme.

The city has already warned a rise in council tax for 2027/28 is inevitable, and earlier this year launched a major engagement exercise to ask local people which services they want to protect.

City council cabinet member for value for money and finance Paul Fisher said: “While today’s announcement on job cuts is difficult, we believe setting the right course now will pay dividends in the years ahead.

“The focus for these reductions is on management roles and not front-line posts. Westminster needs to protect taxpayer money, become leaner and look to more commercial opportunities to generate revenue.”

Cllr Fisher added: “By increased use of technology like AI and embracing more commercial opportunities we can become more efficient while maintaining the services residents value. There are inevitably going to be further significant savings ahead, but today’s restructure announcement is an important step in ensuring we have the right kind of organisation to serve our communities.”

While no decision on a council tax rate for 2027/28 has yet been made, the authority is expected to double its charge to residents each month.

The Labour group said it recognises the “significant financial pressures facing local government after years of underfunding due to Conservative austerity, as well as the opportunities technological advances offer to improve efficiency”.

Their statement said: “But the Conservatives must be honest about the impact these cuts will have on the services that matter most to residents. We are particularly concerned that the communities department has been dismantled and is now in scope for redundancies. This team has played a vital role in bringing council services closer to residents through local engagement, building relationships, and connecting people with support. Council staff play a vital role in making Westminster work.

“We will continue to hold the Conservative administration to account for its decisions and demand transparency about what these cuts will mean in practice for staff, residents, and the essential services they depend on.”