A COUNCIL has announced plans to cut up to 100 jobs in a bid to claw back a £7m budget deficit.

Redcar and Cleveland Council yesterday said it would invest £4m into its services, which would include care for the elderly and vulnerable children.

But its budget shortfall has prompted letters to about 3,000 council workers asking for volunteers for early retirement or redundancy.

The council's cabinet chairman, Councillor Eric Empson, said: "This is not a position we wanted to be in. It is extremely regrettable, but we are putting a savings package together which protects vital services.

"If there are to be any reductions in services, they will be small and confined to areas which, through consultation, the public has told us are low priority.

"We are having to cut £7m from our budget plans for next year and have made significant progress towards that.

"Part of the package has to be looking at employment posts and we are looking for volunteers for redundancy or early retirement, without any commitment from either the council or the individual at this stage.

"We are investigating whether we could lose staff in particular areas without it having an adverse effect on frontline services.

"While we will do all we can to avoid compulsory redundancies, we may not manage it this year."

The council is appealing against its funding allocation from the Government, and councillors are due to take their case to Westminster today. But it is still promising improved services and a commitment to keep any council tax rise to the Government's five per cent guideline.

Chief executive Colin Moore will outline the council's plans in three roadshows this week.

Coun Empson said: "At this stage, we would anticipate less than 100 full-time posts could go - losing any is deeply regrettable, but we must put services first."

* Last week, City of York Council warned it would have to cut at least 100 jobs in a bid to balance its books. Its finance chief, Simon Miles, also warned that council tax rises of five per cent were unavoidable.