LEWISHAM Council has oulined its plans for making £60m of cuts over three years.
The council estimates it will need to make the savings in the light of the government’s plans to wipe out the national deficit.
In a report approved at a council Mayor and Cabinet meeting officers warn London councils will have to reduce their spending by around 25 per cent.
Over the past two years, unemployment has risen by 3,500 in the area and officers warn this could increase.
They warn that Lewisham has the highest rate of public sector employment in London, with 40,000 residents working in that sector.
The report says: “For every one council worker who may lose their job over the next three years, an additional four Lewisham residents may lose their jobs working for other public sector employers within the borough and across London.”
It recommends savings of £20m next year, £30m in 2012/13 and £10m the following year.
Options for savings are to be put forward next month, with recommendations to the mayor later in the year.
Mayor of Lewisham Sir Steve Bullock said he planned to work with other Labour councils in Southwark and Lambeth to minimise cuts by seeing where things like senior management and back room staff can be shared.
He said: “We have to seek dramatic improvements in efficiency by working in partnership with our neighbouring councils, other public services and the private sector.
“Every pound we can save through efficiency is a pound we can spend on frontline services.”