Weinstock's letter, which says partnerships must reduce their VAT liability to become more tax efficient, follows an emergency meeting of chief executives at Connexions' Sheffield headquarters on 13 February.
The Department for Education and Skills (DfES) said the cuts were likely to mean "no frontline staff jobs will go" but that they "may lead to a reduction in administration or managerial staff". This could mean that personal advisers will be required to take on extra administrative work.
Connexions' total budget for 2003-04 is 455m. The DfES said the 25m is not a reduction in the Connexions grant, which is supposed to rise to 515m by the financial year 2005-06. It claims the cuts would be made from a "pot of money set aside as a short-term measure to support transitional arrangements following a change in Connexions' VAT status".
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