COUNCIL workers in Southampton face a pay cut and up to 250 job losses in the authority's biggest ever round of budget cuts.

Council chiefs today admitted they need to make record savings of £62m over the next four years following deep Government spending cuts.

All staff were told today they must take pay cuts averaging 5.4 per cent or at least 400 more jobs would have to go in the next two years.

A 90 day consultation starts today to reduce paid working hours by two hours a week for the council's 4,180 employees.

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Chief officers will see their salaries slashed and be told to take five days unpaid leave.

Mileage rates will also be cut from up 54p per mile to 40p and there will be a two year pay freeze for all staff.

Non-statutory sick pay will be cut back to three days without a doctor's note.

The 250 jobs will go next year.

Hundreds more could follow in future years.

Councillors also face a five per cent cut in thier allowances.

Council leader Royston Smith said the pay cuts were needed to protect jobs and front line services.

He admitted: "Some services will be reduced and some will go altogether""Our focus will be on protecting services that support the economic development of Southampton, creating new jobs for local people."

All council staff have already been asked to take voluntary redundancy or early retirement.

Cllr Smith added: "I recognise that our savings proposals will have a direct impact on council staff.

Redundancy is awful for those staff involved and I'm very sorry for this."

Unions said the proposed cuts were unacceptable and refused to rule out strike action.