Wolverhampton Council announced plans to slash 2,000 jobs yesterday, blaming the the Con-Dem government's "savage cuts."

With the worst still to come, the cull will hit 20 per cent of the council's workforce.

Labour cabinet member for resources Andrew Johnson accused Westminster of "targeting the poorer areas of the country" for cuts.

By 2016 the council will have lost £147 million in central government funding.

Mr Johnson said: "We have lost a huge proportion of the main source of our income, which is the grant from the government.

"That's why we have to make these job cuts.

"Wolverhampton is the 20th most deprived area in England.

"We have been targeted more than the wealthy areas."

The council had previously planned to cut 1,400 jobs but had to increase the figure after realising it needed to achieve "savings" of £123m rather than £98m as it had thought.

Mr Johnson said only "some essential services" would be spared the axe.

Public-sector union Unison regional officer Dawn Sant said the news was "devastating."

She said plans to outsource services for vulnerable people meant an extra 500 jobs would also go.

And GMB union regional organiser Karen Leonard said council workers now faced an uncertain future with jobs and hours under threat.

"Those who survive the jobs cull can expect a pay freeze, equating to a real-terms pay cut, and an ever-increasing workload."

The Labour-run council has previously warned it was at risk of "becoming insolvent" and has plans to raise council tax by 2 per cent.