More warnings of cuts to council services were made to MSPs on Wednesday.

According to council leaders, redundancies and using private firms for some services are among the choices for local authorities which have seen their revenues fall while bills continue to soar.

MSPs on a Holyrood committee heard the comments from two councils the day before the Scottish Government publishes its draft budget for the year.

David Anderson, director of city development on the City of Edinburgh Council, said a 60% drop in land value had caused particular problems.

"We're also facing a number of other pressures, clearly as unemployment rises the pressure upon the council to provide additional services increases," he said.

"Last year we faced a 73% increase in our electricity costs, so again that's an additional pressure that came out of fuel-price inflation. These things combine and the anticipated reductions in public finance generally will put huge pressure on service delivery."

To save money in Edinburgh the council, which has a £1billion budget, has ordered a recruitment freeze and a 4% service cut "across the board".

Mr Anderson said if staff numbers are not reduced "then that 4% cut in services becomes potentially an 8% cut".

A controversial proposal to invite private companies to bid for bin collection services is also still on the table, it emerged.

Responding to questions from David McLetchie, Tory MSP for Edinburgh Pentlands, Mr Anderson said: "The intention - subject to the council approving the approach recommended by officers - is to move into a competitive dialogue process in the New Year.

"That's not necessarily committing ourselves to going out to engage with the private sector."

Derek Cunningham, director of development and infrastructure on East Dunbartonshire Council, described similar financial strains to Edinburgh and underlined problems that stemmed from the building sector.

"There are significant demands and pressures in relation to infrastructure, the road network and school estate - all of these are significant pressures

"There's social work pressures, again quite significant and growing."