Material recycling firm makes 31 redundancies in a bid to save 25% in its annual £70m spending

The Waste and Resources Action Programme (WRAP) has made redundancies in a bid to save 25% in its annual £70m spending.

The government's main delivery body for expanding markets for recycled materials, made 31 of its staff redundant as it reshapes its priorities ahead of major cuts to its budget from April.

The Banbury-based firm, however, hinted that 18 new roles are to be created. Its 200 employees were warned about the cuts before Christmas.

A WRAP spokesman told the Letsrecycle website: “Defra told us that for planning purposes we should work to a possible budget cut of 25% with a 5% window either way and that we wouldn't know our final budget until later. That remains the case.”

WRAP has hinted that its cuts could stretch to a 30% level. The organisation said it could not give details of the 31 compulsory redundancies, but the spokeswoman said at the moment there were no intention to make redundancies at a senior level.

WRAP also said local authorities were told before Christmas that they could expect a cut in funding available for home composting projects.

Other areas that could see cuts include the organisation's work with the construction industry to reduce waste and divert materials from landfill.

The spokeswoman said WRAP was intending to continue working with the sector to help achieve the government's goal to halve waste from the construction industry by 2020.