Up to 1,000 council jobs could be axed as part of the city council's cost-saving measures, a former council leader believes.
Yesterday, the Government approved a £120m recovery package which allows Southampton City Council to sell assets or get out loans to balance its books.
This has saved the authority from having to declare effective bankruptcy - but the council faces making tough decisions to secure its long-term financial future.
READ MORE: Southampton City Council avoids bankruptcy as support agreed
Daniel Fitzhenry is the Tory leader at Southampton City Council and also ran the authority between 2021 and 2022.
Based on an average council worker salary being around £40,000, he believed that the council may have to make 500 to 1,000 staff members redundant to reduce their overheads.
Part of the recovery package mentions up to £12.2m of the funds raised by the council being spent on 'restructuring'.
It is understood this could fund any redundancy packages.
Cllr Fitzhenry said: "After months of denial, the truth is out - Labour in Southampton have needed a £120m bailout facility from the Government for destroying the finances at the council in only 22 months since they took back office here in Southampton.
"Council tax, council rents, Itchen bridge fees and care charges have already risen, but now Labour need to save £40m over the next 12 months which will mean the Labour Council likely selling council buildings below market prices & needing to make redundant 500 - 1000 members of council staff to balance the books."
READ MORE: Live updates: £120m Southampton City Council support announced
He added: "This mess is totally unnecessary, had Labour run the city properly, as we did In our year between May 2021 - May 2022, the pain and difficulties coming would not be happening. This is a very very sad situation and time for our great city."
Tory MP for Southampton Itchen, Royston Smith called on Labour councillors to "hang their arrogant heads in shame".
He said: "The Labour-run council in Southampton has brought the city to its knees.
"Their financial mismanagement is shocking but their blatant attempt to blame all their problems on others is breath-taking.
"They have built almost no new homes, ignored equal pay for twelve years, squandered cash on their pet projects, victimised motorists and then, as if the humiliation couldn’t get any worse, go cap in hand to the Government to bail them out.
"The voters aren’t stupid, despite Labour treating them as though they are. Labour have increased council tax, hiked parking and bridge charges, closed a care home, slashed vital services, allowed bins to overflow for weeks, and for what?
"To bring the city to the brink of bankruptcy. This is incompetence on a scale never seen before."
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