Road repairs, adult social care, rubbish collection, libraries, CCTV, lawyers and adult education could all be pooled among three councils to save cash.

Lambeth, Lewisham and Southwark councils are looking at council service areas, among others, as areas that could be shared, in a bid to absorb the effect of funding cuts from central Government.

The merging of services is likely to mean thousands of job cuts across the three councils.

A report to Lambeth Council’s overview and scrutiny committee said the councils were also looking at sharing office space.

Negotiations to merge services have been accelerated since cuts of between 25 and 30 per cent to council budgets were predicted by the coalition Government.

The details of the squeeze on town halls across the country will be known after the Government announces the results of its spending review on October 20.

The report to the committee, which was due to meet on Tuesday, October 12, stated: “The quality of services on offer should not be compromised through any agreement – except where this is explicitly agreed by councillors.

“The approach should lead to significant financial savings at an adequate level of productivity. The approach should seek to sustain frontline services by reducing overhead costs first and to optimise income.

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