Opposition councillors warned the worst is yet to come as the latest cuts at Southampton City Council were discussed.

Labour council chiefs’ mini-budget proposals to axe £7.7 million of services – including 195 jobs, the Woodside Lodge residential care home and day service for people with learning disabilities – were discussed at the authority’s meeting yesterday.

The proposals have now gone out to consultation, with a final decision expected in the autumn.

They were attacked again by the Conservative opposition, with Tory finance spokesman John Hannides suggesting the authority look at outsourcing more services, and with council chiefs still having to find another £17.3 million of savings for next year’s budget, he added: “I suspect the worst of the bad news is yet to come.”

Council finance boss Stephen Barnes-Andrews said he was “not a fan” of outsourcing, but added: “All options have to be considered.”