All 580 staff at Teignbridge Council have been asked to consider taking voluntary redundancy or early retirement as the authority prepares to find further multi-million pound savings.

Managers have pledged to protect front line services such as bin collections as far as possible and urged staff and taxpayers not to panic.

Pay cuts and increased council charges have not been ruled out, nor have closer ties with other authorities, but the threat of compulsory job losses is said to be low.

Employees were contacted on Tuesday afternoon via a bulletin issued by chief executive Nicola Bul beck.

It was prompted by the government's intention to cut council grants by an average of 28 per cent.

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