A £30M budget black hole must be tackled by Swindon Council over the next four years – with £12m in savings needed over the next six months.

Soaring care bills, dips in the council’s income brought on by the recession and increased demand for council services mean difficult decisions must be made, according to the lead member for finance.

Coun Mark Edwards said he could not rule out a rise in council tax, cuts to services or job losses but insisted the council was striving to save money where it would have least impact.

“I’m confident we are going to balance the budget but what we have to do with council tax is very much in the balance,” he said.

“We always strive to deliver the lowest possible rise in council tax but the reality is that we are facing a very difficult situation. We have to look at the rate of council tax or the services we provide. We can’t have both.”

Cost cutting measures for the 2009/10 budget caused anger among many residents, and Coun Edwards said he accepts that whatever choices are made there will be criticisms.

He said: “Whether a service is used by five people or 500 someone will be upset. I don’t want to impact the residents anymore than I have to and I can fully understand the concerns of people last year over libraries and park and ride, but put that against adult social care and you can see the real challenges we are facing.

“We are going to face increasing challenges over the years to come.”

Coun Edwards pointed out that more than £20m of efficiency savings have been implemented over the past few years and said long term changes to the way the council operates were in the pipeline.

One key change will be to the way adult social care, which eats up £40m of the council’s £130m revenue budget, is administered.

Coun Edwards said: “If you look at how we look after our elderly – we have historically focussed on care homes and taking people out of their homes.

“Instead, we need to move towards a state where we are reading the situation early and helping people stay in their homes.

“At the moment we are in a situation where half of the adult social care budget – some £20m, is being taken up by around 500 people. That’s a huge portion of our budget and not one that most people would know about unless they have a friend or family member who has directly benefited.”

Savings will also be made by allowing council employees to work remotely or from home and by creating more opportunities for community involvement in council services.

“We are bringing the council into the 21st century,” said Coun Edwards.