Hundreds more local authority jobs will be axed in Lambeth by next April, according to its council leader.

Coun Steve Reed revealed he expected hundreds of staff to go from the borough's schools, and hundreds more posts to be shed at the town hall in response to funding cuts from central Government.

Lambeth Council is cutting more than 400 staff this financial year, and is drawing up plans to let others go based on predictions of 25 to 30 per cent reductions in Government grants from next next April.

Announcements of further job losses and service reductions are likely to be made in December.

Council sources predict some 1,000 jobs could be shed for 2011/12 and a total of 2,000 jobs by 2013-14.

Coun Reed would not say exactly where he expected the axe to fall, but said: "Every area will be affected.”

In an exclusive interview with the Streatham Guardian , he was the most candid his administration has yet been about the state of the town hall's finances in the run up to October's crucial Government spending review.

On October 20 the coalition will finally reveal the extent of grant cuts local authorities will have to deal with in the coming three years. Lambeth is anticipating a £90m cut to its finances in the next four-and-a-half years.

He said: "I'm concerned some people do not realise the extent of the cuts we face, which are the deepest since the Second World War and worse than the 1980s. Services will have to go but we have vowed to protect the most vulnerable residents."

He added: "Further job losses are unavoidable. We are looking at the situation now but staffing is by far our biggest expense and this will have to be reduced.”

He spoke in the context of Croydon Council's announcement they intend to remove 1,400 posts – a total of 35 per cent of all its town hall staff because of the cuts.

Lambeth, a slightly smaller council, employs about 8,000 staff, including school employees.

Lambeth Unison branch manager Jon Rogers said the union would vehemently oppose widespread cuts.

He said: “It will take significant amounts from the local economy which will impact on the private sector causing more job losses.”