A Black Country local authority is in fresh turmoil today after bosses unveiled plans to avoid filling jobs in a move to keep council tax down.

The ruling Tory-Liberal Democrat Wolverhampton council, which is trying to cut costs, is setting up an internal panel to block staff recruitment unless absolutely necessary.

The panel will meet on a regular basis and examine whether vacancies that arise should be filled.

Jobs in schools will, however, be protected.

The move follows the publication of a report by officers saying the authority faces “a difficult situation” over the next few years as it battles to balance the books.

A voluntary redundancy scheme could also be launched in the near future as a way of avoiding compulsory job losses.

Bosses are budgeting for a 4.9 per cent rise in council tax next year but the new administration is vying to impose a lower increase to appease residents.

The report, called in by the authority’s watchdog-style scrutiny board for examination, says in most circumstances jobs that come up will be advertised internally to existing staff for redeployment.

If no current staff can fill the post, the panel will advertise externally if it deems it would be “detrimental” to frontline services not to fill it.

Tory councillors Wendy Thompson and Joan Stevenson will oversee the process.

The creation of the panel has prompted a furious reaction from the opposition.

Labour group leader Councillor Roger Lawrence said today: “This is a panic measure when figures for the first two months of the financial year show a staffing underspend of £0.7 million already.

“The problem with the non-filling of vacancies is that no-one can predict where they will fall or the impact or extend of cuts in services.”

The panel is expected to be running by this September.