A SHAKE-UP at Durham City Council will see five senior posts go to save more than £120,000 a year.

The council is carrying out a restructuring to cut costs, meet the recommendations of its Comprehensive Performance Assessment and focus on priorities set by the Liberal Democrat administration.

Changes at the top will include the cutting of the post of director of environmental services, head of regeneration and head of finance and the cutting of two new posts.

The post-holders are being allowed to take voluntary redundancy or early retirement with enhanced pensions.

The council is seeking cuts elsewhere and more than 70 staff across the board have applied for voluntary redundancy or early retirement.

The council is currently reviewing all its services, including those that it is not obliged by law to provide.

"We are mindful of the fact that the Government is requiring us - like all authorities - to make 2.5 per cent savings per annum,'' said council leader Sue Pitts. "One thing that came out of consultation with people over the Council Tax was that they do not want cuts in services and want us to be more efficient.''

She said the assessment described the council as "slow to learn'' and "responsive rather than proactive'' and the shake-up would focus the authority on its priorities.

Applications for redundancy would only be approved if a post was surplus. She said many applications were prompted by concern about possible unitary local government and a forthcoming rule that will stop employees accessing their pension before the age of 55.