Cuts to local government funding are having unexpected, far-reaching and negative consequences for local communities, research commissioned for the trade union Unison has revealed.

Two years in the making, the paper from the Centre for Local Economic Studies (CLES), suggests cuts to the local government workforce are contributing in many places to irreversible economic damage on a scale akin to the industrial restructuring of the 1980s.

Using a multiplier to reflect the possibility every public sector job generates between 0.3 and 0.5 jobs in the private sector, the 380,000 estimated council job losses could translate into around 115,000 private sector job reductions.

‘The scale of the cuts means that expertise, local networks and services that have been built up over many years are being eroded and much of the damage will be irreversible, without urgent action,' said Unison head of local government Heather Wakefield.

‘The deep cuts imposed on local government will have counterproductive effects, making it harder to serve the local population and create resilient local economies,' Ms Wakefield added.

Speaking to The MJ ahead of Unison's annual two-day local government conference, which today enters its second day, Ms Wakefield said local government was absolutely critical as a ‘place-shaper' - as was the local government workforce. 

‘And local economies are directly affected by how much local government workers earn, because we know that certainly, outside of London, most employees live in the council within which they work.  So the wages of local government workers are critical to the survival, let alone the growth within local economies.'

On Friday it was announced Unison members had voted to accept the 2013/14 National Joint Council for Local Government Services (NJC) 1% pay offer – which would end the three year local government pay freeze.

Ms Wakefield told The MJ the decision should not be read as the members being happy, because the vote was roughly 3 to 2 in favour of acceptance.

‘It was pretty close, really,' Ms Wakefield said. ‘Lots of people who are very angry just didn't bother to vote so this should not be read as contentment with what by any standards is a derisory pay offer.'

‘As far as Unison is concerned this is now the start of something big, as far as our absolute determination to make sure that our members get a better deal next year,' she added.