THE cash crisis engulfing Worcester City Council now looks likely to hit councillors where it hurts the most - in their own pockets.

A real-terms pay cut is looming for them after the city's Tory leadership revealed it is making no plans for any increase in councillors' allowances over the coming year.

Councillor Roger Knight, the cabinet member in charge of finance, said that with every department currently being forced to slash its budget, the cash-strapped council simply cannot afford to raise allowances even in line with inflation.

"There's nothing at all included in next year's budget for raising allowances," Coun Knight said. "We've got a situation where we're making cuts and efficiency savings all over the council, and the bottom line is we can't afford it."

An independent panel of community leaders will make an official recommendation in three weeks' time suggesting how large an increase councillors should receive. It is expected to recommend a rise above the rate of inflation - but the final decision will be taken by a vote of the full council at the end of February.

Coun Knight said: "When it comes up for debate, I shall be voting against any increase in members' allowances. I believe that's the right thing to do."

His comments came following a meeting of the council's budget scrutiny committee, in which Labour member Councillor Pamela Clayton had demanded to know what the cabinet themselves were doing to save money.

"We're cutting services here, there and everywhere," she said. "How are the leadership group pruning their services?"

The cabinet's hard line was confirmed by council leader Councillor Simon Geraghty, who responded: "There is no extra money for members' allowances in the budget - by virtue that's a cut.

"City councillors currently receive a basic annual allowance of £3,775 each. Those with added responsibility - such as committee chairmen - get additional money, with cabinet members receiving a total of £9,437 and the leader the top earner on £13,212.

The leadership's stance was received cautiously yesterday by Labour group leader Councillor Adrian Gregson, who said: "We're certainly open to some debate about this. I'm not clear exactly what the cabinet is likely to propose yet, but one thought would be some kind of settlement tied to staff pay increases, or something like that.

"We're not closed to these sort of suggestions, though I don't know how effective cutting councillors' allowances would actually be in helping the budget gap, which appears to be quite large. It will be an interesting debate to have."