Southampton’S council leader has hit back at attacks on plans to cut costs by a quarter and privatise more services.

Cllr Royston Smith accused the unions of “scaremongering” and said claims that residents will receive an inferior service from working with private companies was “absurd”.

The council’s “change programme”, which sets out how the council will cut £50m from its running costs over the next three years, says “by 2015, we expect to be primarily a commissioning council.”

It says that waste collections, street cleaning and park keeping could be privatised and that the council should “not be afraid to stop doing things” to cut costs. More services could also be shared with other councils.

Unite warned the strategy was a blueprint for wholesale privatisation and would result in worse public services.

Labour MP Alan Whitehead said the proposals would be a “disaster”

for Southampton.

Cllr Smith said: “Trade unions have in the past called for less management costs, bureaucracy and waste and that is exactly what this change programme will deliver.

“How anyone can criticise plans to make an organisation more efficient and give more value for money for our residents is completely beyond me.

“We would only embrace partnerships with the private sector if it makes absolute sense by improving services for residents and value for money for the tax payer.”

Cllr Smith said the council needed to become more “customer focused” and “businesslike”

as it responds to massive Government funding cuts.

The council has already contracted out its customer services, IT, human resources, property, tax and benefits work to Capita under a ten-year £290m deal.

Its leisure venues are now mostly run by DC Leisure and construction giant Balfour Beatty has taken over its highways division in a £100m ten-year-contract.