Finance chiefs could be forced to slash an extra 200 jobs at County Hall to cut the authority's budget by another £22 million.

Bosses at Leicestershire County Council say the scale of the cuts planned by the Government means £88 million will now have to be cut from its budget over four years.

It was originally hoped that the savings could be kept to about £66 million.

David Parsons, leader of the County Council, said: "We all know the public sector faces incredibly tough financial challenges but we are going to face these with the help of our residents."

On September 7, the council's ruling cabinet will meet to begin mapping out where the axe will fall.

Plans to cut everything from school bus routes to adult social care have already been made, meaning savings will have to be made in new areas.

The cabinet will discuss plans to help residents have their voices heard on budget priorities and savings.

The results of various surveys and public meetings will feed into the council's budget plans. These plans will start to take shape after the Government unveils its national spending targets in the comprehensive spending review on October 20.

Coun Parsons said: "We are going to take residents with us by directly asking for their advice as we plan the next steps in ensuring that this county provides excellent public services at value for money.

"Residents already know we are planning not to increase council tax at zero for the next two to three years."

But the Lib Dem opposition has queried whether the council tax pledge was the right one in the current climate.

Group leader Simon Galton said: "I am frankly shocked at the prospect of having to find more savings from an already tight budget.

"I am concerned that the Tories' insistence on basing its entire budget strategy on 0 per cent council tax now looks less feasible.

"We warned at the time that this could be a risky and unstable strategy and events look like they could prove us right."

The council insists it is already trying to cut costs by working with other authorities on large projects.

Working with other highway authorities on maintaining roads is projected to save £15 million by 2013, making more efficient use of council office space is expected to save £1 million a year, while a deal to work with Nottingham City Council on plans to share services is likely to reduce costs by a further £1 million a year.

The report due to be submitted to the cabinet says: "The state of public finances set out in the emergency budget is much worse than previously anticipated."

It was originally thought that a Conservative Government would match the cost of freezing council tax for two years, but the report admits that it is now only likely to be matched for one year.

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