Confirming the job losses yesterday, finance spokesman Willie Sawers said they would be cut through voluntary redundancies and retirals. He assured staff there would be no compulsory redundancies.

The figure announced by the council, which employs more than 6500 people in Tayside, is more than four times anticipated by workers’ union GMB which had predicted the axing of 45 jobs at the council just over a week ago.

The £11.649m of savings that will be made over the next two years will mean savings of £25m will have been made by 2017/2018.

Mr Sawers said other cost-cutting measures would be implemented to services including waste management, roads and street lighting, children and family services and environmental services.

He said: “We believe we’ve brought forward a package that minimises the impact on front line services, that minimises the reduction in head count across the council and avoids compulsory redundancies and freezes the council tax.

“We think the changes will be minimal. There will be some changes in support functions, there will be changes in terms of properties closing, but these are properties not used by the public.

“So there will be a minimal impact on what the public see.

“In terms of jobs, there’s a voluntary redundancy scheme in place. There will be a reduction in head count in full time equivalent posts from over 6500. That reduction will be limited to about 200.

“We are absolutely confident that we will achieve these numbers on a voluntary basis and there will be no compulsory redundancies.”

The council is also increasing the wages of more than 1000 low-paid health workers to the living wage of £7.85 per hour.

The proposed budget will go before a meeting of the full council on February 25.