HARROW Council is planning for up to £12m a year in cuts and savings, it has been revealed.

The annual deficit has been projected by the council's finance chiefs as economic conditions continue to look bleak, prompting a radical change in the working of local government.

In the landmark paper called Better Deal for Residents, Councillor David Ashton, leader of the council, has set out changes in working to help save money.

He said: “All councils have to evaluate what they do and how they do it.

“This is a fairly radical review of our operations because every year we have to find £10m of additional savings.

“We want to do things right and we want to continue to provide good services to residents.”

The plans include closer working with bodies such as NHS Harrow and Harrow Police, combining services across the borough for more efficient working, and expanding the role of the voluntary sector.

The changes will lead to a smaller local government, with some services likely to be outsourced if they can be provided cheaper, and the council's property portfolio will also be consolidated.

Councillors have been looking to build a new civic centre combined with a police base and medical centre, but looked to have been thwarted when the collapse of the Harrow College project put a stop to their plans.

However, Cllr Ashton said they are still keen to find a site for a new civic centre, which would be smaller and more efficient than the current building in Station Road.

A report handed to cabinet yesterday evening states the council is facing between £10m and £12m funding gaps year-on-year, and officers suggest the “ambitious” changes are “critical”.

£500,000 has been set aside to develop firm plans to change the way the council works, and some of that money will be paid to PriceWaterhouseCoopers and Capita who are helping on the scheme.