The government said "every penny" saved by NHS efficiencies would be spent on front-line services for patients.
Speaking ahead of the discussion, Mr Gargan said as chief constable he was directly accountable for front-line services.
Chief fire officer Paul Raymond said front-line services would have to be cut to deal with the shortfall.
The Home Minister Jonathan Le Tocq said the aim was to improve front-line services by better using resources.
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Federation vice chairman Steve White said its biggest concern was protecting front-line services.
The council said the move would not mean a cut in front-line services, only a reduction of management posts.
"What we are trying to do is protect front-line services, " Mr Hale said.
Under current rules, revenue generated from the sale of council assets cannot go into running front-line services or paying wages.
The Conservative-run council also said there will be no cuts in front-line services, but a Labour councillor branded that "rubbish".
The council said the cash would be used to improve front-line services and "keep a lid" on future tax rises.
"We have to take a radical look at how we work, redesigning the front-line services and streamlining corporate functions, " he said.
But it's not JUST about cutting bureaucracy because those central government departments are responsible for current spending on front-line services too.
But the squeeze has also left its mark on the front-line services Labour has staked so much political capital on improving.
If we are to have any more reductions imposed upon us of significance it really will have an impact on front-line services.
Members of the authority said the financial strategy was to avoid harming front-line services but conceded that cuts in staff numbers were "unavoidable".
Research from over 100 charities in England and Wales found two-thirds were losing front-line services, while more than half had made staff redundant.
It said front-line services would be protected during the cost-saving process.
The Labour candidate has pledged to protect front-line services but said she would also identify potential areas of savings in order to balance the budget.
The Fire Brigades Union said front-line services had to be protected.
Eric Pickles has consistently argued that it is by bearing down on waste and duplication that local authorities can find the necessary savings without damaging front-line services.
"Weekly bin collections are one of the most visible front-line services and there is no plausible reason why councils should not deliver them to hard-working residents, " he said.
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She said money should be redirected to protect front-line services.
"This piece of work is all about protecting front-line services, so when you put in a 999 call the firefighters that respond will be your local firefighters, " he said.
He did that by suggesting he would cut "unnecessary and wasteful" defence spending, abolish the children's trust fund and plans for national identity cards, and put the money instead into front-line services.
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"Councils need to do their bit to deliver sensible savings, and in turn, protect front-line services and keep council tax down, " a spokesman for the Department of Communities and Local Government said.
He said the top three factors to improving front-line services while delivering savings are to strip out duplicated layers of management, reduce debt repayments to the banks and drive down accommodation costs and overhead.
In a statement the council said funding from central government was "significantly cut year-on-year" so the council was looking at "innovative ways to generate revenue to offset the declining income while protecting the front-line services".
"While every effort has been made to reduce our corporate costs and protect front-line services to the public, inevitably there will be fewer posts overall and that will have an impact on policing, " he said.
Patricia Marquis, director of the RCN South East region, described it as "a direct attack on front-line clinical services".
"Whilst every effort will be made to sustain front-line public services, communities need to be aware that each and every public service within the local authority will be scrutinised, " he said.
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