The London Development Agency (LDA) has announced it will shed more than 200 jobs in the next five months, following the government’s decision to pull its funding
By March 2011 just 108 jobs will remain at the agency which currently employs 320 staff.
A funding settlement, the subject of dispute between City Hall and the Treasury, has left LDA with a considerabbly reduced budget of £159 million to cover the cost of a raft of contractually committed projects.
As much as £56 million worth of these projects are unrelated to the Olympics and could be up for review. A source said: ‘Even when contractually committed we will be looking at contracts in detail to see whether we will be continuing them.’
The fate of Design for London which employs 20 architects is still hanging in the balance. However an LDA spokesperson confirmed the agency is on course for an ‘orderly wind-down’ for when it closes in March 2012.
The London Development Agency has been completely overhauled over the last 2½ years and the LDA now delivers increased benefits to London and better value for money. It is an open and transparent organisation. From having more than 600 staff in 2008, after recent in-year budget cuts the LDA now has around 320 posts.
The Spending Review imposes severe cuts on public sector funding. The Government has now indicated that our final settlement will only cover legal commitments in our budgets.
This is one of the scenarios for which we had planned as part of our preparations for closure in March 2012. Despite this low settlement, we intend to continue to meet our project commitments and move towards an orderly wind down.
We are consulting staff and trade unions to explore how we can achieve staff reductions and meet out commitments.