IT contractors may find employment opportunities restricted in the public sector as 25,000 council jobs look set to be lost, a survey has found.

In the next three to five years, around ten per cent of the 256,000 jobs in councils across the country will be lost, according to the BBC.

The corporation reports that councils across the country are anticipating job cuts should central government reduce funding, as is expected.

Some councils were predicting total spending cuts of up to 20 per cent.

Responding to the survey, Tony Travers of the London School of Economics told BBC Radio 4 that the 25,000 figure was "cautious", and the expected number could be 100,000.

However, one leading group has called on the public sector to think carefully before making "ill conceived" spending cuts.

A more flexible workforce involving contractors and temporary staff to cope with peaks in demand would be more efficient, according to Kevin Green, chief executive officer of the Recruitment and Employment Federation.