Derby City Council has warned that it may have to cut 162 jobs in order to plug a £34m funding gap.

The local authority has revealed plans for its 2023-24 budget, warning that it faces a ‘perfect storm’ of rising costs and inflation.

The council’s proposals include increasing council tax by 4.99% – the maximum allowed without a separate referendum.

There will also be a reduction in a number of service areas, including Early Help, Adult Social Care, and libraries.

The service changes being proposed will also require 162 fewer full time equivalent posts, of which some are vacancies.

Cllr Jonathan Smale, cabinet member for Finance, Digital and Culture, said: ‘The global and national economic situation has presented councils across the country with unprecedented funding challenges this year. Setting a balanced budget for the coming financial year has been difficult, and we have had to consider the impact of changes in Council Tax and service delivery against the wider picture of protecting our most vulnerable citizens.

‘We want to hear the public’s view on these proposals more than ever before, because we have faced some extremely tough choices. But deciding not to go ahead with one proposal will mean having to find equivalent savings elsewhere.

‘We’re looking to mitigate the impact where we can, building on the strengths of our communities and by working with our partners. We know that we can achieve more in the city if we work together.

‘Let me be clear – this is not the budget we wanted to set, and we still have considerable work to do, with more savings to find over the next two financial years. We will continue to lobby national Government to find a solution to the issue of funding for local councils.’

UNISON East Midlands regional organiser Emma Roberts said: 'It’s the Tories who stole Christmas. Derby City Council have been in financial difficulty for some time now, so why have they allowed so many big projects to overspend? They have also spent over £1.5m on legal fees refusing to settle an equal pay claim.

'Local councils are cash-strapped thanks to 12 years of this Scrooge-like Conservative government and authorities will keep resorting to ever more desperate measures just to keep services going.

'Austerity has cast a long, nasty shadow over this country and cost many lives – yet it seems the worse is yet to come in Derby.'