125 business support jobs go in £4.4m savings bid

The taxpayer-funded business support body has been told to make savings of 4.4m from its annual budget of about 35m in the current financial year. Barnsley-based Business Link Yorkshire has funding for 430 full-time positions at present.

Chief executive Helen West warned that compulsory redundancies will be necessary if not enough staff come forward as volunteers. She said: "It's just like everybody else funded through the public purse – we have to make budget cuts this year."

The news comes on a grim day for public sector workers, as details emerged of the scale of cuts expected nationally at the Ministry of Justice (MoJ).

Unions warned some 15,000 jobs could be at risk after a leaked letter to senior civil servants revealed the department's 9bn budget is to be cut by 2bn.

More job losses are also possible at Business Link further down the line, as Business Minister Mark Prisk has said he plans to wind down regional Business Link contracts and make better use of online services and private sector providers.

More details on the future shape and size of business support are expected in a White Paper due later this summer.

That will be followed by the comprehensive spending review on October 20 which will set out more plans for public spending cuts.

Ms West said: "Planning for next year cannot begin until we have the spending review and the White Paper.

"But we do understand from the Government that they are keen to make sure Business Link organisations stay in place until March 2012 in order to maintain a service until new arrangements are in place."

A spokeswoman said the organisation will "continue to deliver expert help by phone, via the web and face to face with in-depth adviser services".

Meanwhile unions warned of the devastating effects of the cuts planned at the MoJ, which has already announced plans to close more than 150 courts across the country, including 12 in Yorkshire. Assistant general secretary of probation union Napo Harry Fletcher warned: "These cuts will lead to huge reductions in staff.

"As a consequence, individuals on probation will no longer be supervised properly."