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Plans to cut more than £40m from Leicester City Council's budget have gone out to public consultation.

The authority said a fall in central government grants had forced it to consider major changes.

It is sending out a booklet detailing current spending and a questionnaire asking residents which services they value the most.

Outline proposals will be made by the elected mayor's team early in 2012 with a final decision expected in February.

Leicester mayor Sir Peter Soulsby said making the savings would be difficult: "Leicester is having to face making some appalling cuts in the services it provides.

"The government is expecting us to cut £30m from our services in the current year and £20m in each of the coming two years.

"It is going to be very painful indeed - for the people that provide those services and for the people that rely on those services."

The council said it spends about £293m on services each year.

At least 300 redundancies have been made this year with a similar number expected in the next 12 months.

A spokesman for the Department for Communities and Local Government said reductions in grants were needed to help cut the national deficit and councils should look to deal with waste before cutting services.