The council said numbers would not be known until December

A report for Torbay Council predicting its budget for 2005/6 said a council tax increase of 5% would still leave the shortfall.

Redundancies will be discussed by the council at a meeting on 30 November.

The council added that the report also outlined an aim to protect frontline services, such as teachers, social care workers, street cleaners and gardeners.

We know this is terrible news for staff, coming as it does just before Christmas Council leader Chris Harris

The council said exact numbers would not be known until the government announced final council budgets in December.

It added that priority areas of work would be unaffected and that there was no council-wide jobs freeze.

It said all recruitment would be scrutinised for potential savings, but recruitment to vacant posts in priority areas would continue as normal.

Council leader Chris Harris said: "We know this is terrible news for staff, coming as it does just before Christmas. But our budget settlement means we have to take hard decisions.

"We have been left with no option but to reduce the number of staff we employ, difficult though this decision will be."

Chief executive Richard Painter said the authority had implemented savings and explored every avenue.

He said: "Our staff have been under intense pressure to improve the quality of our services and the reputation of this authority and, with members' support, this has been achieved.

"Members I know will share my unhappiness that so soon after these achievements there is now to be a substantial decrease in staff levels of Torbay Council."

If councillors agree on the report, the authority will begin consultations with trade unions.

The council will be seeking voluntary redundancies in the first instance.