That could mean up to 60,000 job cuts across the public sector, the freezing of public sector pay for two years, and a review of pensions.

The IBR also proposed the Scottish Government should ditch some key policies, including free personal and nursing care for the elderly, concessionary travel, free eye tests, the freezing of the council tax, road user charging — opening up the possibility of tolls back on bridges — and to consider bringing in tuition fees for students.

Dundee’s share of the pain will be £15 million in 2011/12 and millions more in the following two years.

Opposition party councillors today called on Dundee’s council leader Ken Guild to come clean and let the public know where he expects next year’s required £15 million of savings to come from

However, policy and resources convener Willie Sawers made it clear the administration would not be rushed into showing its hand.

The city’s SNP administration is understood to be one of the last in Scotland to reveal the key cuts.

But the possibility of more than 700 council jobs being axed from Dundee’s 7500-strong payroll — a prospect raised in the Government’s budget report — had opposition group leaders demanding answers to the looming financial bombshell.

Tory leader Rod Wallace said the situation now appeared so bad that it merited a recall of councillors from their holidays for an emergency meeting.

Councillor Sawers agreed the fiscal pressures facing the council were “unprecedented” but still refused to reveal details of cuts.

He said, “We won’t know the outcome of the UK Government’s spending review until it’s published on October 20 and that’s when the Scottish Government will know its settlement. Until then, it’s a matter of conjecture.

“The administration and officers of Dundee City Council recognise the challenges ahead. Already senior officials are looking at options to meet the necessary cuts.

“We have already held a meeting with the leaders of the opposition groups and the independent members to appraise them of this work and invite their input. These meetings will continue until the budget setting meeting in February.”

Councillor Sawers was asked if the council was still planning to stick with its voluntary redundancy policy at a time where both public and private sectors were introducing compulsory pay-offs.

He said, “Dundee City Council values highly the contribution our workforce make. Due to budget pressures we have introduced a Voluntary Redundancy/Early Retirement scheme.

“We believe it is better to work in partnership with our staff to achieve the level of savings necessary.”

Mr Wallace said he had been left “shocked” by the impact of the report. He added, “It’s a real host of bad news on every front.”

He said believed it was time the ruling SNP group put its cards on the table. He added, “People are going to lose their jobs across the spectrum and I think they are entitled to be told.”

Labour leader on Dundee City Council Kevin Keenan today said he would be asking the SNP leadership when people will be told of the decisions that are bound to have a major impact on their lives.

He said he feared the next 12 months could bring school closures, extensive job losses and deep cuts to vital social services and child protection budgets. He also warned council tax payers to “plan for the worst”.

Meanwhile, Lib Dem councillor for the West End Fraser Macpherson called on all parties on the council to put political differences aside to tackle the feared massive cuts in the authority’s budget.

Cllr Macpherson said Dundonians wanted to see vital services protected and a cross-party consensus was essential.