Hundreds of posts will have to go, schools will have to close and most areas of expenditure frozen as Highland Council tries to save £100m over the next four years as a result of the recession, according to the senior figure charged with overseeing the authority�s budgets.

Hundreds of posts will have to go, schools will have to close and most areas of expenditure frozen as Highland Council tries to save £100m over the next four years as a result of the recession, according to the senior figure charged with overseeing the authority's budgets.

David Alston, budget leader in the ruling Independent/LibDem/Labour coalition, believes it is irresponsible for the Scottish Government to continue to freeze council tax when authorities' are facing dire financial prospects.

"Our revenue budget is £600m and we get 80% from the Scottish Government, and all the indications are that that will not grow in the coming years," Mr Alston said.

"Indeed the Centre for Public Police and the Regions suggests that in some circumstances it could be even worse. But even a flat settlement will mean a lot fewer jobs. We have over 10,000 full-time staff at the moment, including teachers.

"But in a few years' time there will be fewer posts and you are talking in hundreds not in tens. We will always try to manage that without compulsory redundancy, but there can be no guarantees."

He said the council was looking at amalgamating primary schools in Fort William and would look where else there could be cuts.

"We will also have to look at doing things more efficiently, with the social work department sharing costs where possible with the health board on things like social care and care of the elderly.

"Questions have to be asked about the appropriate role for the council in supporting sport, arts and heritage. There can be no sacred cows. You simply can't manage these levels of cuts by only salami slicing at the edge of budgets.

"We do not know our grant settlements for 2010 to 2013 but it looks as though we will have to have savings targets of up to £60m, £10m of which has been agreed.

"Services have been asked to come forward with savings proposals on budgets of 5% in 2010/11 and 6% in both 2011/12 and 2012/13. But we will also have to put a cash freeze on inflationary pressures on everything apart from staff and energy.

"That means we will not be able to spend any more on goods and services than we do now, whether it be jotters and books for classrooms or tar on the roads."

He said that should save £27m over three years. This would be on top of the £13m saving already agreed this year. There could also be a 50% reduction in capital spending, meaning cuts in schools and road building.

"The whole of the public sector is in the same position. It's not just because of the recession but because of the billions, trillions, of pounds involved in bailing out the banks. There will be a fundamental change in how much money there will be available for the public sector," he said.

John Finnie, leader of the SNP opposition on the council, said: "If David Alston wants to break from the concordat on freezing council tax is he willing to give up the monies that flow from it? I understand that would now require a 19% increase in council tax to balance."

A Scottish Government spokesman said: "We are providing record levels of funding for Scotland's local authorities - £11.8bn this financial year - and have fully funded the two-year freeze in the Council Tax to the tune of £70m per year.

"We will also set aside a further £140m over the next two years and work with our Cosla partners to help deliver a Council Tax freeze for the duration of this parliamentary term."