Southern Rail drivers are to be balloted for strikes over pay, threatening disruption at the start of the school holidays.

The company said the drivers' union Aslef had notified it that voting will start on June 29 and close on July 13, so the first walkout could be on July 27.

The firm which runs train across Sussex and into London said it had proposed a 23.8% pay award that would, over four years, take a driver's base salary to £60,683 for the existing 35-hour, four-day week.

Aslef members are due to start a ban on overtime on June 29 in the long-running dispute over driver-only trains, which will cause fresh misery for Southern's 300,000 passengers.

Southern said it would withdraw its offer if the overtime ban goes ahead.

News of the new ballot came ahead of publication of a long-awaited report for the government into Southern, which has been hit by strikes, staff shortages and other problems for over a year.

The report, by Network Rail director Chris Gibb, will criticise Aslef and the Rail, Maritime and Transport union for the series of strikes they have taken.

The Department for Transport and Southern's owners Govia Thameslink Railway, will also be criticised.

The report, which Mr Gibb gave to the Government last year, will also lay some of the blame on long-term problems such as under-investment.

A spokesman said: "People will be amazed the Aslef leadership has rejected such a significant pay offer for their members, especially as they have twice before accepted the extension of driver-controlled operation which has now been in place for over six months.

"Aslef should now suspend the overtime ban pending the result of this new ballot because we won't be able to keep our pay offer on the table if they press ahead with interim industrial action.

"This ballot is a real chance for drivers to end this dispute by showing they want to accept the 23.8% pay offer and work with us to modernise the congested Southern network as updated infrastructure, trains and working practices provide the service passengers need and deserve."