Council tax in Cannock Chase could soar by five per cent in each of the next three years.

The shock news came as the district council announced a swathe of cuts to public services and 27 possible job losses in a bid to fill a cash black hole.

Councillors last night revealed a plan to balance the budget which includes reducing the amount of free bus travel for pensioners.

It will also close the bar at Cannock Leisure Centre, scrap a scheme to give residents free pest control for wasp nests and flea infestations and drop a grant for community groups.

Maintainance of  CCTV cameras and street furniture such as litter bins and road nameplates would be reduced. The council is also looking to shut leisure centres on bank holidays and at Christmas.

Council offices at Cannock, Hednesford and Rugeley would stop taking cash payments.

The cuts in services will save the council £389,160 next year, £417,000 in 2010 and £426,000 by 2011.

A review of senior management at the council will save £121,000 next year, £324,000 in 2010 and £324,000 by 2011 with a review of other staff positions saving £272,000 this year, £280,000 in 2010 and £286,000 by 2011.

Council leader Neil Stanley blamed the problems in part on a below-inflation Government grant. He said: “Raising the council tax by less than five per cent would mean we would have to make deeper cuts, it as simple as that.”

A final decision on the plan, following consultation, will be made in February.