A MULTI-million pound shortfall in Wirral Council's budget will lead to job losses and services being slashed.

A cabinet report says that "the authority faces key decisions" in the face of a predicted gap of over £60m.

Over the next three years the local authority will adhere to a government spending plan, and staff could face redundancies to bridge the divide between income and spending.

The move could lead to a 4% increase in council tax.

Controversially, the human resources budget is set to increase to help re-skill and redeploy staff into other departments.

Council leader Steve Foulkes said members face a "difficult task" in clawing back the gap.

"We need to make efficiencies across all council departments to make savings and alleviate the pressure on council taxpayers," he said. "Our main pressures come from the increased cost of the workforce, education - which is a number one government focus - and the strain on waste collection and disposal.

"We need to be careful about what we spend and where, and bring about changes that council taxpayers can afford."

A finance report shows a shortfall of £25.5m in 2008/9, £17.5m in 2009/10 and £18.8m the year after.

Tory leader Jeff Green blamed the budget gap on "financial mismanagement", adding: "The people of Wirral need a change from the half-baked nature of these cuts. The public deserves better than having to pay an increase in council tax for a reduction in the quality of council services."