Hundreds of workers are facing redundancy and services are under threat as Merton Council battles to control its budget.

A report released by the council this week said it would cut 100 to 300 full time posts by March next year.

It also revealed staff have been told to consider taking voluntary redundancy - although a council spokesman said there was no way of knowing how many staff would want to take up the offer.

The report, released ahead of a meeting of the council’s corporate capacity scrutiny panel, said the cuts were needed to close a predicted budget gap of £14.5m in 2010.

A union representing council workers slammed the decision, calling it “cynical”.

Earlier this year the council launched the Merton Efficiency Project, a consultant led bid to drive down its costs with changes to buying strategies, organisational structure and staffing.

Letters have been sent to council staff, asking them to consider taking voluntary redundancy, early retirement, part time working or ‘career breaks’ by the end of next week.

Any offers to do so will be considered in early September, when the number of compulsory redundancies needed will be decided.

Chief executive Ged Curran said: “We are facing very difficult financial times over the coming years and need to find large savings. This is because the services we provide cost more than the money we receive from the Government and through council tax.

"With more than three quarters of our budget spent on staffing, it will be necessary to reduce the workforce if we are to achieve the savings we need of £14.5m in 2010 and just under £12m in 2011.

“With such fantastic staff working for Merton it is with regret that we are in this position.”

A spokesman for general workers’ union Unison slammed the decision.

He said: “The council announced last week that it has more than £12m sitting in bank, so it is simply not true that they have to make these cuts.

“They have taken a cynical political decision to cut front line services to residents now, so they can ensure a reduction in council tax just in time for next year’s election.”