Hundreds of local government workers across Edinburgh are demonstrating at the city chambers over against proposals for 2,000 redundancies by next May.

Unite the union said the cuts are being pushed through as Edinburgh City Council seeks to make savings of £141 million over the next four years while grappling with a total debt estimated by the union to be as much as £1.6 billion.

Unite has tabled a number of alternative financing proposals to alleviate budget constraints including a collaborative effort to pursue a debt amnesty on all pre-Scotland Act loans from the Public Works Loan Board, which could free-up £32 million a year in the council budget.

Unite Deputy Scottish Secretary Mary Alexander said: "Mass compulsory redundancies are not in the interests of anyone – not the workers, not the public and not the council itself.

“We know the council has significant debts but we are not looking at recriminations, we are looking for solutions to the problem.

“We need to explore how we can loosen the budget constraints but this requires a political will from the city’s elected representatives and council officials to work collaboratively with the joint trade unions.

She added: "Through our alternative financing proposals we believe there is a better way and our message is clear: Let’s work together to secure jobs and services under public control in Edinburgh for the next generation.”

Unison has also said there is the threat of industrial action over the level of of cuts.