THOUSANDS of jobs face the axe and a range of frontline local services reduced or withdrawn as new figures show Scotland's councils approaching a financial blackhole of around £1billion.

The Scottish Government's most up-to-date data on projected cuts to public spending shows it will have £2billion less over the next three years, with local government now bracing itself for the brunt of the burden.

If alternative savings cannot be found however the reduction to the Scottish budget would be around £3billion, with a deeper impact again on vital services such as care, schools, refuse collection.

Several councils have told The Herald, which today relaunches its Reshaping Scotland series, they are facing funding gaps between 2016 and 2019 in excess of what they had to deal with in the previous six years combined.

One leading political economist has warned the need for dramatic savings will mushroom after the current financial year, with funding for frontline services and salaries now expected to feel the impact.

Professor John McLaren, who heads think tank Fiscal Affairs Scotland, said: "Scotland, like the UK, is only around a half of the way through the cuts to public services process initiated by the UK government

"Unlike the earlier years it is expected to be day-to-day spending budgets, rather than capital/investment budgets, that take the hits in the coming years

"At over -5 per cent in each of the next two years, the cuts in spending could be over double the average size seen in the past four years.

"As the NHS budget will continue to be protected the position for all other public service budgets will involve even bigger cuts."

Since 2010 councils have received £800million less in real terms in their grants, with over 40,000 posts removed through voluntary redundancies, natural wastage and internal changes to how they do business .

The imminent cuts to schools' and social work budgets, home helps, parks, libraries, refuse collection and even environmental health services also come amid record levels of demand, an increasing elderly population, high energy prices, debt repayments and wage rises.

Evidence from England, where councils have had their spending power reduced by a third since 2010, has shown how they have had to refocus priorities to cope with the impact of cuts sparked by the reaction to the collapse of the banks on their poorest citizens.

Watchdogs have already warned in recent months that most Scottish councils have failed to make long-term plans for the financial precipice ahead.

With the need for reforming councils again falling under the spotlight, The Herald today asks what national and local government is doing to protect the millions of citizens who rely on their vital local services from the oncoming cuts.

Sir John Arbuthnott, who led an aborted attempt to restructure core council services in the country's most densely populated area, the Clyde Valley, over five years ago, said: "With the financial pressure ahead, we know what is needed and further change has to happen soon. The pace remains extremely slow.

"With elections forthcoming in May next year, let us see clear plans at national level and delivery by local government."

Professor Richard Kerley, of Edinburgh's Queen Margaret University, a leading expert on local government, added: "Plans need to be made now for next year and the year after that. All these changes required by public authorities take a longer amount of time than people think and its much easier for trading organisations.

"This should have started long ago, some have but many haven't. All will be required to make significantly different choices in the few years ahead."