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The reduction follows a previous 15 per cent cut in management implemented over the last two years.
Sheffield Council leader Paul Scriven - who has not taken an £800 increase in his £30,000 annual payment over the last two years - said redundancies will be spread evenly across departments, although posts in child protection and adult social care will be given “a degree of protection”.
Today Deputy Prime Minister and Sheffield Hallam MP, Nick Clegg said: “Every job loss is regrettable and I do not underestimate how difficult this will be for the people affected.
“But I know how hard Paul Scriven and all at Sheffield Council have worked to minimise the redundancies while protecting front line services.
“They have had to make tough decisions in very difficult circumstances after the mess Labour left the economy in.
“Sheffield Council has done this in a responsible manner and kept job losses much lower than Labour-controlled Liverpool and Manchester, where they seem to have put political point scoring above people’s livelihoods.
“The job loss figures in Sheffield are far fewer than the thousands Labour were bandying about.
“They should apologise to the people of Sheffield for their opportunistic scaremongering.”
The council is saving £219 million over the next three years, around £80 million of which will be made in the coming 12 months.
Coun Scriven said: “Although it is not good news for those affected, we have made efforts to keep job losses to a minimum and have managed to ensure the impact is less severe than in other cities.
“One way is to freeze staff pay rises, which affects everyone apart from the chief executive, and has saved up to 300 jobs from being lost.”
The freeze was opposed by unions but imposed after talks between management and union representatives failed.
Coun Scriven added: “There has been some good news for Sheffield’s economy with 500 private-sector jobs being created by Sky.
“Council staff earning below £21,000 a year will have a £250 pay rise.
“This administration is committed to reducing management costs and John Mothersole is leading by example.”
Coun Scriven said a freeze in council tax will be made in 2011/12 and “the vast majority of services will continue”.
“We have not yet decided where the redundancies will be made but we have made people aware certain areas will be vulnerable. “
Mr Mothersole said: “The decision to take a pay cut was a personal one. I’ve done it to maintain integrity with staff.”