But the council has assured residents across the district it will have no affect on the services it is currently providing, although it confirmed new initiatives could be refused.

The cuts, announced at its Cabinet meeting on Wednesday evening, are being imposed until the end of December, but officers are expecting the restrictions to continue well in to the New Year, with rising fuel costs and the introduction of concessionary fares the biggest concern.

Next year's budget shortfall is predicted as £365,000, with free bus travel costing the council an estimated £535,000, oil price increases adding a further £210,000 and pay awards and inflation being predicted at £820,000.

In a letter sent to the council's Chief Executive, directors, heads of service and ward councillors, finance director John Sowden said the Government said: "It is essential the council acts immediately to do what it can to alleviate the financial shortfalls we face next year and thereafter.

"By taking this action the council is seeking to avoid future reductions in direct services to the public."