And if these applications were not approved then the council could face court action from numerous groups.

Green River's council has also faced several problems in the past with economic growth of the city.

At the time, the council was facing rents on I Street that it could not afford.

If the whole workforce was forced to disband, the council would face a redundance bill of around £2.5m.

"There is a feeling that the military council faces many restrictions," Nafaa, the political science professor, said.

The Home Office faces cuts of 25%, local councils will face a yearly 7% cut in funding from central government each year until 2014.

Mr Davies, in his letter to staff, says the council is facing a serious financial situation.

The council is also facing a maintenance backlog for its properties amounting to more than £84m.

The council has faced controversy after announcing plans to close 12 youth centres and cut library hours.

The results mean that several key councils could face a struggle for power.