Cash-strapped Aberdeen City Council is facing another £20m of cuts on top of the £50m savings it is currently trying to achieve.

The financial crisis in which the council has been embroiled throughout this year has seen the chief executive Douglas Paterson retire early and the council receive a scathing report from the Audit Commission.

It ruled the council did not have the capacity to deal with its financial mess and recommended the involvement of "appropriate external assistance" to help resolve the situation. It also suggested the appointment of an independent local government finance expert.

The council appointed Bob Coomber at £1000 a day to the dual role of chief executive and financial adviser, and he will be replaced as chief executive in December by Sue Bruce, 52, the current chief executive of East Dunbartonshire Council.

Yesterday the council announced that senior officials and councillors have started discussions on potential savings. Disabled and vulnerable groups have been particularly hard hit by the present round of cuts.

Labour North-east MSP Richard Baker said that cuts of the scale now envisaged would be "disastrous".

He said: "It is hard to see what else can go. A further £20m is more than this community can bear."

Last night council leader Kate Dean, attending a conference in France, said: "The officers are starting work on where the savings might be made and they will go before the council in November. After that we can start discussions with who might be affected.

"We want more discussion and consultation and to hear many more people's opinions as to where the best places to make the savings might be."

The council says the 5% cut includes the 2% efficiency savings target set by the Scottish Government for all local authorities.