PLANS to close and privatise Southampton old people's homes have been scrapped, the Daily Echo can reveal.

The future of two council run homes had been in jeopardy as social services bosses tried to slash £3 million off its budget. But now the cash will be found through efficiency savings and a possible, though as yet unspecified, withdrawal of some services.

Ruling Labour politicians were told the news in a closed party meeting last night. Many councillors had expected Northlands House old people's home in Banister Park to close despite a campaign by relatives of its 36 residents to secure the home's future.

But they and their relatives will now be told Northlands and Whitehaven Lodge, in Millbrook, at one point ear-marked for privatisation, will be kept open by the council.

The overspend had been blamed on people living longer and the difficult handover of services from Hampshire County Council to Southampton City Council two years ago.

Executive director of social services John Beer said: "In developing this package of savings we have concentrated on making maximum use of new government grants, lowering overheads and maximising income, rather than closing down bricks and mortar facilities."

Chair of social policy Chris Kelly said: "We have been working for many months to find a package of savings and economies that we hope will enable us to minimise the impact on people who use our services.

"But our priority is to continue to provide quality services to the most vulnerable people."

Savings totalling £2.4million will include a continued freeze in recruitment through social services and a tightening of administration costs, but they will avoid any compulsory staff redundancies.

The Labour group has also commmitted itself to putting more pressure on the government in order to squeeze out more cash for essential services including those for the elderly, disabled and children.

Union members will be told of the review's outcome today.

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