A MANAGEMENT restructure at Colchester Council could see a new company formed to deal with the authority’s commercial ventures and two senior officer positions made redundant.

The council’s chief executive Adrian Pritchard introduced the plans for a reshuffle to the authority’s cabinet at a meeting on Wednesday.

If the plans are agreed, the council could save £208,000 by axing one head of service and economic growth manager role and other overheads associated with moving some roles to a new company.

Mr Pritchard said: “I think this is about Colchester Council continuing the journey of being ready for the changing face of public services.

“I believe there is an opportunity to maximise our commercial opportunities but still continuing with a public sector ethos.”

Staff affected will now be involved in a 30-day consultation period.

Deputy leader of the council Tim Young (Lab) said the move was necessary as the council tried to deal with a budget gap created by diminishing funding from central government.

He said: “I think we have a duty to try to create a management structure for the 21st century and this move will take us along the road to that. We need investment from the Government but we are getting the exact opposite. This plan deserves support.”

Conservative group leader Dennis Willetts said his party had suggested a similar structure in previous manifestos and also said he would back the plan.

He said: “A saving of £200,000 has to be applauded by the taxpayer but it would still seem compared to other businesses employing about 1,000 people the council is still a little top heavy.

“In the past I have previously criticised the council for still running in the style of a 1940s municipal borough focused on jobs rather than providing services in the best manner.

“We welcome the recommendations of this report and look forward to seeing the full definition of Colchester Commercial Services. This is music to my ears and you can be assured of my support.”

The new structure will be discussed by the council’s forthcoming scrutiny panel.