Council facing cuts 'had more cash'

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Underperforming Oldham Council, criticised by a National Audit Office report, may have to make the job cuts to balance its books.

The local authority is now in consultation with the unions.

But the Prime Minister, in nearby Manchester for his party's conference, said Oldham had been given extra taxpayers' money, more than some other councils.

"The important thing is we have raised the grant to Oldham Council by 6% this year and it's a higher raise in grant than in some other councils," he said.

"That means we are giving from central Government money that I think is about £6 million extra allocation beyond last year.

"It is for Oldham to make its own decisions what it does.

"I would have thought with the raise in grant we have made they are in a position to make decisions to ensure a good deal for council tax payers and to ensure that services and jobs are protected."

The authority has a deficit of more than £17m in its £195m annual budget. The NAO report placed Oldham Council in the bottom 16% of councils in England for its overall performance.

Council leader Howard Sykes said it was "critical" that the authority found a way to save money, but added that the plans were still at an early stage. The council is now run by the Liberal Democrats who won control from Labour in the last local elections.