HUNDREDS of jobs are set to be axed from councils across Scotland as local authorities set their budgets in the wake of the protracted row over the Government’s controversial cash deal.

Calling on local authorities to promise there will be no compulsory redundancies and urging the Scottish Parliament to use its tax-raising powers to put more money into local services, the trade union Unison promised a long- running campaign against the cuts.

It comes as hundreds more jobs have been confirmed as facing the axe, with the level of redundancies in Dundee four times that predicted by unions.

However, Argyll and Bute has said it has managed to keep job losses to a minimum after councillors rejected a raft of options presented by council management.

The authority faces the need to make about £10 million-plus in savings in the coming financial year.

The expected number of job losses fell from a potential 184 in the coming year to 82.

The council added that more than 450 employees have expressed interest in taking voluntary redundancy.

Council leader Dick Walsh said: “We are doing all possible to keep unavoidable job losses to a minimum, and will use our tried and tested methods to ensure, as much as we can, that there is a place for everyone who wants to continue working for Argyll and Bute Council.”

Education budgets have taken a major hit in the budget, with the axing of all of the council’s secondary school librarians. However, it rejected plans to reduce classroom assistants by a fifth.

Meanwhile, Dundee City Council has announced 200 posts will go as part of plans to save £25m across the next two years, more than four times the figure anticipated by workers’ representatives.

Leading union the GMB had predicted the axing of 45 jobs at the council just over a week ago.

The budget details come amid warnings that local government faces the prospect of waves of industrial unrest, “poverty wages”, neighbourhood deterioration and increasing rates of mental health problems as cuts start to bite.

Councils face a £1billion black hole in the next 12 months, with a £500m cut from Government and the same again in spending pressures.

Both councils are either to set or outline their budgets since local authorities agreed to accept Finance Secretary John Swinney’s all-or-nothing local government finance deal.

Edinburgh has already set its budget, with about 2000 posts to go, as has Falkirk, which is expected to shed 400-plus jobs.

Up to 15,000 local government jobs are expected to be cut in the next two financial years.

In all, SNP-led Dundee announced £11.649m of savings yesterday, under half what will be made over the next two years.

Finance spokesman Willie Sawyers said despite the 200 jobs going there would be no compulsory redundancies.

He added that cuts will be made to domestic waste recycling, roads and street lighting, children and family services.

A Unison spokesman said: “Of the 50,000 job losses in devolved services, 40,000 have been in local government and Unison expects 15,000 more jobs to go over the next few years.

“The need for council services has not disappeared and remaining staff have to take on extra work and do the best they can to deliver what they can. The evidence shows that local services are in crisis and further cuts are simply not sustainable.”