Councils will be hit with further cuts of ten per cent tomorrow, a senior Conservative confirmed – but he insisted the money could be found from tackling waste.

Quizzed at Westminster, party chairman Grant Shapps revealed the further pain awaiting cash-starved town halls in the Chancellor’s crunch spending review.

But Mr Shapps denied the latest cuts – from 2015, following average reductions of 33 per cent in this Parliament – spelt disaster for council services.

Instead, he insisted there was still “plenty” of waste for town halls to cut, saying: “I think they can do another ten per cent.”

And he accused council chiefs of protecting their own jobs, rather than agreeing to share services, adding: “The last cut anyone who works for an organisation makes is themselves – that’s human nature.”

It is the first time a leading Conservative has lifted the lid on the deal struck late last week between Local Government Secretary Eric Pickles and George Osborne.

In March, Mr Pickles was said to be fighting threatened cuts of 7.2 per cent – because council services had “already been cut to the bone” – but has now settled for a higher figure.

The Conservative-led Local Government Association has warned a ten per cent cut will require an average council to find another £30 million of savings, from 2015.

At risk were children's centres, museums, sports centres, road maintenance budgets, street lighting and subsidised bus fares, the LGA said.

And Councillor David Green, leader of Labour-run Bradford Council, has described the city’s future as “desperate” if cuts on such a scale go ahead.

Bradford’s ‘spending power’ has already suffered a reduction of £200 per person – while the 50 councils least worst-hit have lost only £16 per head, on average, Coun Green said.

But, asked about such dire warnings, Mr Shapps replied: “No, I don’t accept that’s the case.”

“We were told that councils would be going bust by this stage of the Parliament – but I know of not a single council that’s gone bust.

“Do I think they are at the end of the road with efficiencies? No I don’t – I still see plenty of efficiencies that can be enacted.

“I think they can do another ten per cent. They will have to be very creative about it, in terms of reforming services.”

Mr Shapps said a Government survey had found more people were satisfied with their local council than three years ago – when the “enormous cutbacks” began.

Tomorrow’s spending review is expected to see some other council funding pots – like road improvements and public health – shifted to Mr Pickles’ department.

That will allow him to argue that savings can be made where spending overlaps with other departments, reducing the pain.