Controversial cost-cutting plans to shed 250 posts at Wolverhampton City Council will get under way within days, it emerged today.

The council’s Tory cabinet is to give the go-ahead for department heads to reduce the number of duplicate posts and cut staffing levels to save taxpayers £7.3 million. The move, which will involve negotiations during the rest of the summer, is part of a wider plan to cut £40m from the budget by 2011. Many job losses are expected to involve the deletion of empty posts.

Workers in management and administration jobs are also under threat.

A total of £1.05m will be saved this year, starting in October, with another £6.3m being saved in 2010.

Bosses have designed a template for all departments to follow. Although 250 posts will be scrapped, it is not clear how many are currently filled.

Chiefs will not reveal the number of job losses expected, but say the figure is likely to be “significant”.

Steve Boyes, director of sustainable communities, said today: “The primary aim of this project is to help the council deliver more responsive services at lower cost.

“It is designed to make us more efficient, to streamline communications and decision-making and increase accountability.

“Ultimately, posts will be deleted and some colleagues may be made redundant, though compulsory redundancy will remain a last resort. As yet we do not know the number of individuals, who could be directly affected, but the impact could be significant.”

The scheme to cut £40m from the budget and axe posts is being driven by the cabinet, which is aiming for no overall increase in council tax in 2010 after 15 years of inflation-busting rises under the previous administration.

The cost-cutting includes scaling down services at five city libraries and increasing prices at leisure centres by 10 per cent.