UP TO 130 council support and administrative staff are to lose their jobs.

Newcastle City Council is shedding the posts to keep this year's council tax rise low, by cutting through red tape. But the move has angered workers' union Unison, which is to ballot members on industrial action.

The proposals, part of the authority's annual budget, are outlined in a report to be considered by its executive on Wednesday.

It is the first budget by the Liberal Democrats, who seized control of the council in the local government elections last year.

They have pledged that council tax will rise by no more than two per cent, while still investing an extra £6m in schools, £4m for social services and £2m for environmental improvements.

Executive member for resources Councillor Peter Allen said: "We promised to keep council tax rises down while putting more money into frontline services - and that is what we are about to achieve."

While admininistration jobs will go, 63 will be created by the setting up of neighbourhood environmental teams.

"This will be the lowest increase for many years and has been made possible because of a rigorous examination of all spending," said Coun Allen.

Unison Newcastle secretary Kenny Bell said cutting administration jobs could have an adverse effect on frontline services.