The Local Government Association issued the warning ahead of the result of the Fire Brigade Union's strike ballot on Friday.

More than 50,000 fire-fighters are being asked to vote on whether to stage their first national strike for 25 years.

If all public service workers got the rise fire workers are looking for that would mean a dramatic increase in income tax

John Ransford, LGA

The Fire Brigades' Union is seeking a 40% pay rise, which would see salaries for fully qualified fire-fighters rise to about �30,000.

Employers are offering 4% as an interim deal, plus whatever an independent government review recommends should be linked to new ways of working.

If union members reject the deal, strike action could begin by the end of October.

Tax hike

But John Ransford of the LGA said agreeing to a 40% pay rise would seriously damage the country.

"If all public service workers got the rise fire workers are looking for that would mean a dramatic increase in income tax something like 4p on the basic rate," he told the BBC.

The government launched a review into the pay and conditions of fire-fighters in an attempt to stop industrial action.

However, the FBU has attacked the review.

Its general secretary Andy Gilchrist called on the government to "stop dithering about" and to sort out firemen's pay.

"I find it incomprehensible that a Labour government can walk almost blindfolded into only the second national strike in our history," he said.

Nick Raynsford, the government minister responsible for the fire service, called for a "sensible conclusion".

He warned that industrial action could put lives at risk.

Industrial action is being opposed by the Retained Fire-fighters Union (RFU), which represents thousands of part-time professional fire-fighters.

Retained fire-fighters serve more rural areas which do not have their own full-time manned station.