Hull City Council is asking all its council workers to consider taking voluntary redundancy.
Between 2010/11 and 2016/17, Hull has seen its revenue support grant cut by £115m - 47% of its budget. The council also warns further reductions are on the table.
In a statement, Cllr Daren Hale, deputy leader of the council, said: ‘Faced with unprecedented and continuing cuts in central government funding we must, reluctantly, ask council staff to consider taking voluntary early termination (VET).
‘As a city, Hull has been hit harder than most by the cuts as we are dependent on the government's revenue support grant to underpin the delivery of essential local services.’
VET has been used by a number of councils in recent years in response to Whitehall’s austerity measures.
Dundee City Council, for example, asked last January more than 6,000 of its 7,900 workers to think about taking voluntary redundancy in a bid to make £23m of savings.
Cllr Hale warns this will impact upon front line services: ‘With much less government money available, any reduction in staff is likely to affect the standard and quality of services we are able to deliver.’