But watchdogs today warned cuts would leave gaps in the seven-year-old service.

Last year councillors pushed for a £100,000 saving from the service, which accounted for more than a third of the budget. Borough chief executive Robin Hooper said the “majority” of costs were tied up in monitoring.

He said: “We have been looking at whether or not we can make an income from the service, but as of yet, I do not think we have found anything to justify this. Nothing has been sufficiently close to the £100,000.”

The council’s cabinet is expected to decide how to make the savings at a closed meeting on Monday.

Assistant chief executive Andy Goldsmith has previously said some of the money could be found elsewhere but that it could result in a “reduced service with reduced staffing”.

Mr Hooper added: “We have to evaluate whether monitoring the cameras is important and when it is important. I believe it has great value in general, but does it still at 4.30am, or on a Sunday morning?”

He said the council was aiming for a greater street presence with town wardens and parking attendants as a more effective way to combat crime.

The system is monitored by two people at a time, providing a 24-hour service.

A spokeswoman for Shrewsbury police, the major users of the system, said: “CCTV is an effective tool in helping police tackle crime in the town.”

Richard Goodchild, scheme manager for pub and shop watch, said he had “great concerns” over possible cutbacks. He said the town centre shops and pubs relied on the monitoring.

He said: “We have seen a significant reduction in retail crime over the last two years.”

Councillors decided cuts were needed across the board for 2007, highlighting CCTV as a key area where savings could be made.