Ministers battle to cease tax-hiking councils bringing in four-day working week – threatening to take management of city halls that do

Ministers are struggling to stop councils bringing in a four-day working week as they hike charges for residents.

Local government secretary Steve Reed has written to town halls warning that they could be regarded as ‘failing’ if they offer staff full-time pay for part-time work.

The intervention raises the prospect that councils defying the instructions could be put under special measures. 

Lib Dem-run South Cambridgeshire District Council became the first to make a permanent move to a four-day week in July, having trialled the policy since 2023. Desk staff, bin men and cleaners are among those getting the benefit. 

Mr Reed has previously condemned a decline in performance in the council’s housing service, demanding to know how the authority intended ‘mitigate’ the issue.

In his letter to English councils, seen by the Telegraph, the Cabinet minister said ‘staff undertaking part-time work for full-time pay without compelling justification would be considered an indicator, among a wide range of factors, of potential failure’.

Local government secretary Steve Reed has written to town halls warning that they could be regarded as ‘failing’ if they offer staff full-time pay for part-time work

Lib Dem-run South Cambridgeshire District Council became the first to make a permanent move to a four-day week in July, having trialled the policy since 2023

Mr Reed said he wanted to make the government’s policy ‘unambiguously clear to all councils’.

A Labour source said ‘Voters deserve high standards and hard work from local councils, and seeing council staff working a four-day week just won’t cut it.

‘They should get on with the job and make sure residents get the best service possible five days a week.’

Keir Starmer has rejected civil servants’ calls for a four-day working week.

But central government has limited direct powers to force councils to ditch the approach.

The Secretary of State can send in commissioners to take over some functions. 

However, such powers are only meant to be used in ‘very exceptional circumstances and very much as a last resort’.

South Cambridgeshire Council claims it can save about £400,000 a year due to lower staff turnover and relying less on agency workers.

Another 25 councils are said to be weighing up the move, with fears it is hitting productivity and adding pressure on public finances.

The move would be particularly controversial as almost all authorities are expected to increase council tax up to the 5 per cent cap for the next three years – and some could impose bigger rises.